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Why ReneSola's Shares Jumped 38.1% on Monday

By Travis Hoium - Dec 14, 2020 at 4:43PM

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An analyst made a big upgrade today.

What happened 

Shares of ReneSola ( SOL 6.88% ) jumped as much as 38.1% in trading on Monday after getting a big upgrade from an analyst. Shares closed the day up 26.4%. 

So what

H.C. Wainwright analyst Amit Dayal raised the price target on ReneSola's stock from $4 to $12 per share and kept a buy rating. This comes after Dayal initiated coverage at $4 per share in September. 

Solar farm in a field at sunset.

Image source: Getty Images.

As a relatively small company that's actively traded, ReneSola can swing wildly on even the smallest news. But an analyst upgrade has caused a flurry of activity, with 13 million shares trading hands today compared to the 30-day average of 2.6 million. 

Now what

I wouldn't read too much into any upgrade or downgrade of a stock like this, especially soon after earnings were released. Management announced earlier in December that revenue had fallen 85% in the third quarter versus the same year-ago period to $9.7 million, and net income was just $2.1 million. ReneSola may be a solar energy stock with a bright future, but this upgrade isn't reason enough for me to buy the stock today. 

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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ReneSola Ltd Stock Quote
ReneSola Ltd
$5.59 (6.88%) $0.36

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