Sunworks Stock Went Up 680 Percent, But Not for Long


Sep. 25 2020, Updated 11:16 a.m. ET

Following the lofty boom of the SPI Energy stock on Wednesday, another solar energy company saw its price increase: Sunworks Inc.

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Sunworks, which goes by the ticker symbol "SUNW" on Nasdaq, saw their share price go up about 680 percent, from $1.16 on Wednesday's market close to $7.90 by 10:00 a.m. on Thursday. However, that increase didn't last, and Sunworks has since revealed that they received a delisting notice from Nasdaq. 

Sunworks stock news

After its major win, Sunworks shared some news with the general public: they received a delisting notice from Nasdaq on Tuesday, Sept. 22. This means they received the notice prior to the price jump, a time when Sunworks was trading as low as $0.74 per share.

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The Nasdaq Exchange requires companies who trade on its index to maintain a minimum $1.00 per-share price. If a company trades below the dollar mark for 30 straight days, Nasdaq will send a delisting notice. This gives the company 180 days to comply by reaching $1.00 per share for 10 consecutive days, or else they're off.

According to a statement Sunworks made on Friday morning, "The company is monitoring the bid price of its common stock and will consider options available to it to achieve compliance."

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Once the news of this delisting notice made its way out into the world, the Sunworks stock price decreased as a result of pre-market trades Friday.

Sunworks stock price today—and a forecast for the future

At market open on Friday, Sunworks stock was trading at $2.99. This is lower than the previous close of $3.93. In the hours since, that number has dropped lower. By 10:25 a.m., it was sitting at $2.15. By 10:40 a.m., the price was up to $2.67 before dropping down just minutes later.

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Clearly, there's some ongoing activity. We can expect more fluctuations as the day goes on, but likely nowhere near the initial jump.

What Sunworks can tell us about Tesla

Tesla has consistently retained its top spot in the EV market for some time, and investors are eager for a cheaper bid. With the SPI Energy announcement of their new subsidiary EdisonFuture, the market presumes that more EV competition may be coming their way—this time, they're betting on Sunworks. 

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Is Sunworks stock a buy?

Sunworks stock rose quickly, but it fell quickly, too. Its active volatility, in conjunction with the low market capitalization and recent delisting notice, make me question whether Sunworks is a wise buy. However, if investors have the time and liquidity to back them up, it might be worth the watch.

As for the delisting notice, it seems that recent solar sector volatility has actually helped Sunworks keep its position on the Nasdaq—for now. As long as they can muster 10 consecutive days at $1.00 or more per share, they're in the clear.

Despite the fact that SPI Energy is their competition, their EdisonFuture announcement that shook the industry's stocks may have given Sunworks some grace this one time. Perhaps it will be enough grace to launch Sunworks into their own EV venture. 


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