Sunedison Inc (NYSE:SUNE), the largest global renewable energy development company, announced today that it is delaying the filing of its Annual Report on Form 10-K for the year ended December 31, 2015 beyond the extended due date of March 15, 2016.
The scope of work required to finalize the Company’s financial statements included in the 2015 Annual Report on Form 10-K has expanded due to the identification by management of material weaknesses in its internal controls over financial reporting, primarily resulting from deficient information technology controls in connection with newly implemented systems. Because of these material weaknesses, additional procedures are necessary for management to complete the Company’s annual financial statements and related disclosures, and for the Company’s independent registered accounting firm, KPMG LLP, to finalize its audits of the Company’s annual financial statements and the effectiveness of internal controls over financial reporting as of December 31, 2015. In addition, the investigation by the Audit Committee, previously disclosed by the Company on Form 12b-25 filed with the Securities and Exchange Commission on February 29, 2016, concerning the accuracy of the Company’s anticipated financial position previously disclosed to the Company’s board of directors, has not yet been finalized.
To date, the additional procedures performed as a result of the material weaknesses identified and the investigation by the Audit Committee have not resulted in the identification of any material misstatements or restatements of the Company’s audited or unaudited consolidated financial statements or disclosures for any period previously reported by the Company. (Original Source)
Shares of SunEdison are falling 16% in pre-market trading. SUNE has a 1-year high of $33.45 and a 1-year low of $1.21. The stock’s 50-day moving average is $2.12 and its 200-day moving average is $5.49.
On the ratings front, SunEdison has been the subject of a number of recent research reports. In a report issued on March 9, FBR analyst Carter Driscoll reiterated a Buy rating on SUNE, with a price target of $7, which implies an upside of 236.5% from current levels. Separately, on March 8, J.P. Morgan’s Paul Coster downgraded the stock to Sell .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Carter Driscoll and Paul Coster have a total average return of -13.0% and -7.3% respectively. Driscoll has a success rate of 34.0% and is ranked #3535 out of 3717 analysts, while Coster has a success rate of 43.6% and is ranked #3553.
Overall, 3 research analysts have rated the stock with a Sell rating, 8 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $4.46 which is 114.4% above where the stock closed yesterday.
SunEdison Inc is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.