What happened
Shares of residential solar company SunPower (SPWR 5.85%) 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.
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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.
