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%.
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.
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.
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.