Elon Musk, a billionaire entrepreneur, has added $10 million worth shares of SolarCity Corp. on Friday to his holdings. Musk is the chairman of SolarCity while CEO of electric car maker Tesla Motors and privately held Space X. Lyndon Rive, his cousin serves SolarCity as its CEO.
Musk has bought 569,680 SolarCity shares at $17.55 per share. The stock has hit a 52 week low of $16.67 on the next day of his purchasing. His acquisition may bring confidence among the investors in SolarCity stock as a long term investment. Probably the entrepreneur has taken the lower stock price as an opportunity for purchasing, reports Fortune.
SolarCity shares have closed at $20.79 on Wednesday and Musk's recent purchase is now worth about $11.8 million. The billionaire now holds 22.15 million shares of the company worth around $460 million as of Wednesday, according to a report published in the MarketWatch.
SolarCity's market cap is $1.70 billion. 50-day moving average of the stock is $36.99 while that of 200-day is $41.41. The renewable energy company has released its quarterly earning results on Tuesday, February 9. It has reported $2.37 earnings per share (EPS) for the quarter off beating Zacks' consensus estimate of $2.59, reports The Vista Voice.
The business has posted revenue of $115.48 million during the quarter exceeding analysts' predictions for $106.43 million. The company has recorded $1.47 EPS during the same quarter of the previous year. SolarCity Corp. is expected to post $9.29 EPS for the current year. A regulatory filing on Wednesday shows that Jana has got rid of its SolarCity shares. Jana has acquired more than 5 million of the company's shares to become its fourth largest investor. SolarCity has witnessed a rapid growth in the number of installed solar panels in the US during the past several years. SolarCity has been forced to shun its modest growth plan for the future days due to some unavoidable reasons. Increased competition and withdrawal of subsidy allocated for the renewable energy sector by the federal government are the two major pulling back factors. Meanwhile, several analysts have recently updated their outlooks on SolarCity Stock. Vetr has upgraded its rating for the stock from 'sell' to a 'hold'. Morgan Stanley has offered an 'overweight' rating in a research report published on December 21. However, Raymond James has rendered an 'outperform' rating tag through a report published on December 22.
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