SunPower Stock Extends Gains on Bevy of Bull Notes

There's ample room for a shift in sentiment toward SPWR

Deputy Editor
Apr 5, 2022 at 9:52 AM
facebook twitter linkedin

The shares of SunPower Corporation (NASDAQ:SPWR) are up 2.1% at $24.57 this morning, after Raymond James hiked its price target on the solar energy name to $26 from $23. This move is in line with recent brokerage activity, as Bank of America yesterday upgraded the stock to "neutral" from "underperform," and raised its price target to $23 from $13, while J.P. Morgan upped its price objective to $21 from $20. These moves came after SunPower held its analyst day on March 31, which was called "more encouraging than expected" by Bank of America.

These bull notes sent SPWR to a 12.3% win on Monday, marking its best day in weeks. The pop also helped SPWR overcome pressure at the $22 level to notch its highest close since early December. The equity now boasts a 17.8% year-to-date lead.

There's plenty of room for covering analysts to revise their ratings and/or increase their price targets on SunPower stock. Coming into today, 10 of the 12 brokerages still recommended a tepid "hold" or worse, while just two said "buy" or better. Meanwhile, SPWR's 12-month consensus price target of $21.62 was a 10.1% discount to last night's close.

The equity could also benefit from a short squeeze. Short interest added 21.% in the two most recent reporting periods, and the 15.92 million shares sold short account for 20% of the stock's available float -- nearly a week's worth of pent-up buying power. 

That being said, it might be the ideal time to speculate on the stock's next move with options. SPWR's Schaeffer's Volatility Index (SVI) of 63% sits in the low 17th percentile of its 12-month range. In other words, options traders are pricing in relatively low volatility expectations right now. What's more, the stock boasts a Schaeffer's Volatility Scorecard (SVS) of 92 (out of a possible 100), implying the shares tend to outperform said volatility expectations. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1