ReneSola Ltd (SOL) closed the shortened session of December 24, unchanged at $9.70, but has lost -19.17 percent in the previous day trading when its shares’ price dropped from $12 to $9.70. The reason for the drop was announcement of a new registered direct offering by the integrated solar power systems developer. ReneSola was aiming to raise $20 million in fresh money, at an offer price of $9.50 per share, selling approximately 2.1 million American depository shares (ADS). The offering price represented a discount of 21 percent from the previous closing price. ReneSola plans to leverage the net proceeds from the deal to expand its pipeline of new solar projects as well as to fund working capital.
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Previously in the mid-month, a favorable note from investment bank H. C. Wainwright was received by ReneSola which caused the price to increase by 26 percent to $6.98 in trading on December 14. The volume of trading on the day reached 13 million shares, while the average 30-day figure was 2.6 million at the time.
H. Amit Dayal, an analyst at C. Wainwright, retained his recommendation to purchase SOL stock, but increased his target price from $4 to $12. That was a big increase, and recently, in September 2020, the previous recommendation to buy with a target price of $4 was issued.
As ReneSola is a small-cap firm, even minor news triggers sharp fluctuations in the stock prices of the company. The capitalization of ReneSola is currently 2.1 times lower than that of the solar company First Solar Inc. (FSLR), although revenue is less than 4.1 times lower.
Investors are likely to appreciate ReneSola’s ability, resulting in share price jumps and a rise in capitalization. ReneSola has big solar energy ventures and teams of experts in a dozen countries. In addition, ReneSola is one of the pioneers in green generation capabilities in several countries such as Hungary, Poland, and the U.S. states including Minnesota and New York.
Over the past week ReneSola Ltd (SOL) stock was up roughly 25 percent, while market capitalization reaches to $8521 million.