SunPower Shares Plummet Amid Operational Pauses, Analyst Downgrade

SunPower Corporation SPWR shares fell Thursday following the company’s announcement of a significant operational pause and a subsequent analyst downgrade.

What To Know: SunPower informed clients it is halting new product shipments and deactivating lease and power purchase agreements from its sales platform.

This operational halt includes no more countersigning new agreements and support for installation services for shipments in transit or already delivered. The company cited its efforts to address financial challenges as the reason for these pauses, according to Reuters.

Moreover, GLJ Research analyst Gordon Johnson downgraded SunPower to a “Sell” and slashed the price target from $1.61 to $0.

What Else: SunPower has been grappling with several issues over the past quarters. The company received a subpoena from the U.S. Securities and Exchange Commission in February concerning its accounting practices.

In the same month, its CEO left the company and in June, its auditor Ernst & Young resigned. Additionally, in April, SunPower announced plans to reduce its workforce and eliminate most of its direct sales channels as part of a restructuring plan aimed at cutting costs.

SunPower's statement to Reuters acknowledged the financial difficulties, stating, “We continue to dedicate our attention to address our financial position and are actively working to navigate our current challenges.”

SPWR Price Action: SunPower shares closed Thursday down 40.08% at $1.51 according to Benzinga Pro.