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Why SunPower Shares Popped 38.6% in November

By Travis Hoium - Dec 8, 2020 at 2:13PM

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Another renewable energy stock has a great November.

What happened 

Shares of residential solar company SunPower ( SPWR -5.34% ) jumped 38.6% in trading during November, according to data provided by S&P Global Market Intelligence, as solar energy stocks pushed higher overall. 

So what 

The biggest news out of SunPower last month was that it had offered to buy back all of its 0.875% convertible senior debentures due 2021. There was $301.6 million outstanding on the debt as of Nov. 23, 2020. The move will reduce SunPower's short-term debt risk and be paid for with cash on hand and through sales of as much as 1 million shares of Enphase Energy stock. 

Large roof with solar panels

Image source: Getty Images.

As positive as it is to pay down debt, shares were pushed higher by the market's newfound affection for renewable energy stocks. Shares of most major renewable energy companies are up big in the last few months, and SunPower is no different. 

Now what 

The market can push stocks like SunPower higher or lower depending on the current view of renewable energy. But long term, the company is going to be driven by its own financial results. After spinning off its manufacturing arm earlier this year, SunPower could be positioned for long-term growth, but I want to wait to see how the business is operating in 2021 before getting too bullish on the stock. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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