SunEdison stock is having an incredible day in the market today after reports of insider buying and a positive note from an analyst. Today, we’ll take a look at the insider buying that is taking place, the analyst’s note, what we’re seeing in the market, and what we can expect to see moving forward.
SUNE CEO Buys More Shares
One of the factors pushing SunEdison higher in the market today is the CEO’s decision to purchase more shares. Ahmed Chatila recently made the decision to purchase 9,700 shares of SUNE at $9.92 per share. This is big news for investors because insider buying is a display of confidence among insiders. After all, Chatila wouldn’t be buying $96,222 in shares in the company if he had any indication that the value of those shares was going to go anywhere but up.
JPMorgan Initiated Coverage On SUNE
In other good news surrounding the company, JPMorgan made the decision to initiate coverage on the solar module maker. It is arguable that the decision to initiate coverage has to do with the CEO’s purchase of shares. In a note to investors, JPMorgan rated SUNE with an “Overweight” rating, ultimately setting a price target on the stock of $24 based on “massive long-term growth opportunities”. In the note, JPMorgan wrote the following…
“SUNE is positioned to capture meaningful share of the $100s of billions of annual cash flow that will be generated from the operation of wind, solar and hydro assets, globally…”
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see more positive news out of SUNE. While I don’t always agree with analyst opinions, in this particular case, I think that JPMorgan hit the nail on the head. The reality is that consumers, businesses, and governments are all working to become more in tune with our planet and the effects we are having on it. As a result, we’re hearing more and more about solar, wind and hydro power which I believe will continue.
Because SunEdison is positioned to play such a massive role in this industry, it only makes sense that their stock will continue to climb as the industry grows. The only downside risk I see here is the fact that the cost of oil is declining. Those switching to solar power to avert energy costs may be deterred. Nonetheless, I don’t think that this is going to be a major issue with regard to the growth of the industry because the industry’s growth goes far beyond cost of energy. All in all, things are looking up for SUNE.
What Do You Think?
Where do you think SUNE is headed and why? Let us know in the comments below!