What's Going On With SunPower Stock Ahead Of Delisting?

SunPower Corporation SPWR shares are trading lower Tuesday. The company announced it received a Nasdaq delisting notification on Monday.

The Details:

The delisting is a result of SunPower’s failure to demonstrate compliance with Nasdaq Listing Rules after filing voluntary petitions for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code and failure to file periodic financial reports.

Trading in the company’s stock on Nasdaq will be suspended on Aug. 16, 2024. As a result, the company’s common stock is expected to commence trading on the Pink Open Market, commonly referred to as the “pink sheets."

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Last week, the struggling solar company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and disclosed an asset purchase agreement with Complete Solaria, Inc. CSLR in which Complete Solaria will acquire SunPower's Blue Raven Solar business, New Homes business, and non-installing Dealer network.

Should I Sell My SPWR Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of SunPower have lost 97.55% year to date. This compares to the average annual return of -79.35%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. SunPower stock currently has an RSI of 8.05, indicating oversold conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

SPWR Price Action: According to Benzinga Pro, SunPower shares are down 13% at 17 cents at the time of publication Tuesday.

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