Shares of the SunPower Corporation (SPWR) stock climbed in the After Market trading session on September 30, 2021. The previously increasing per-share price of SPWR stock got more hype after SunPower announced the launch of SunPower 25X25. SPWR stock price saw a push of 10.05% to reach $2.28 a share in the aftermarket session bringing per share price $24.96. Let’s take a deep look at this stock.
SunPower Corporation runs its business by delivering solar solutions across the globe. It is operating through various segments including Light Commercial, Residential, and Commercial and Industrial Solutions. The company was founded in 1985 and its headquarters are in San Jose, California.
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According to the recent announcement, SunPower launched SunPower 25X25 initiative in order to make renewable energy more accessible for historically marginalized American families, businesses, and job seekers. The stock aims to achieve targets with an initiative by 2025 that includes increased workforce diversity, solar access expansion, and dealer diversity programs.
The targets which SPWR stock aims to achieve by 2025 are
- The first target is 40% representation of its workforce by women and 25% workforce representation by Black and Hispanic/Latinx people.
- SunPower aims to add 25% of U.S residential customers who belong to historically marginalized communities.
- Women and people of color will own 25% of the dealers and subcontractors with which SPWR stock works.
SPWR stock to Join S&P MidCap 400:
SPWR stock is going to replace Cimarex Energy Co. in the S&P MidCap 400 effective before the opening of trading on October 5, 2021. S&P 500 constituent Cabot Oil & Gas Corp expects to complete the acquisition of Cimarex Energy on October 1, 2021.
Financial View of SPWR stock:
According to second-quarter 2021 financial results, SunPower generated $308.9 million in GAAP revenue for the quarter ended July 4, 2021. This compares to the previous year’s same quarter GAAP revenue of $217.7 million. GAAP gross margin from continuing operations was 19.8% as compared to 11.8% in the same tenure of the previous year. Non-GAAP gross margin was 20.6% for the reported quarter as compared to 12.6% in the same period of the previous year. SunPower had $140.5 million in cash and cash equivalents by the end of the second quarter of 2021.
The recent initiative represents the long-term strategy of SPWR stock which will make it the leader of the growing industry. The company is keen to deliver an easy, reliable, and affordable solar solution to its customers. In a nutshell, long-term investors should keep an eye on this stock.