SunPower Corporation (SPWR) shares are experiencing a sharp decline on Tuesday following the company’s announcement that it received a delisting notification from Nasdaq. This delisting is a consequence of SunPower’s failure to comply with Nasdaq Listing Rules. The company filed for Chapter 11 bankruptcy and has been unable to submit necessary periodic financial reports.
Trading of SunPower’s stock on Nasdaq will be suspended on August 16th, 2024. Following the delisting, the company’s common stock is anticipated to commence trading on the Pink Open Market, also known as the ‘pink sheets.’ This move further underscores SunPower’s ongoing struggles.
Last week, the struggling solar company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Simultaneously, the company revealed an asset purchase agreement with Complete Solaria, Inc. (CSLR), where Complete Solaria will acquire SunPower’s Blue Raven Solar business, New Homes business, and non-installing Dealer network.
The delisting notification and ongoing bankruptcy proceedings are significant events for SunPower and its investors. It remains to be seen how the company’s future unfolds, but the recent developments paint a challenging picture.
For investors, the decision to sell or hold SPWR stock is a personal one, heavily influenced by their individual strategies and risk tolerance. Swing traders may opt to sell to lock in potential profits, while long-term investors might choose to ride out the turbulence with the expectation of future share price growth. Additionally, some traders may sell to minimize losses if the stock falls below a certain threshold, whereas long-term investors might view this as an opportunity to acquire more shares at a discounted price.
Year-to-date, shares of SunPower have experienced a staggering 97.55% decline. This performance is considerably worse than the average annual return of -79.35%, indicating that the stock has underperformed its historical averages. Investors can assess whether this price movement is typical or a potential trading opportunity by comparing it to the stock’s historical performance.
In addition to historical performance, investors may also consider market dynamics. The Relative Strength Index (RSI) is a commonly used tool to determine whether a stock is overbought or oversold. SunPower’s stock currently has an RSI of 8.05, suggesting oversold conditions.
As of Tuesday, SunPower shares are down 13% at 17 cents, according to Benzinga Pro.
