Reports say President Biden will announce a 24-month tariff exemption for solar panels
Solar stocks are enjoying tailwinds this morning, after Reuters reported U.S. President Joe Biden will announce a 24-month tariff exemption for solar panels products from Southeast Asian nations. This news follows investigations into overseas activity that has made importing the equipment more complicated. According to the reports, Biden will also utilize the Defense Production Act in an effort to promote domestic production. At last check, SunPower Corporation (NASDAQ:SPWR) is up 5.5% to trade at $19.39, while Solaredge Technologies Inc (NASDAQ SEDG) was last seen 3% higher at $307.24.
Digging deeper, SunPower stock has charged up the charts since hitting a May 12, roughly 19-month low of $12.78. The security last week broke through pressure at the 40-day moving average, which had been in place since late April, and is now trading at its highest level since then. Year-over-year, though, SPWR is still down roughly 15%.
Options bulls are blasting the security today. So far, 3,048 calls have been exchanged, which is four times the intraday average, compared to only 556 puts. Most popular is the weekly 6/10 21-strike call, followed by the 20-strike call in the same series, with new positions being opened at both.
Meanwhile, Solaredge Technologies stock is also on the mend, thanks to an early-May bounce off of the $207 mark -- its lowest level since January. The security is today eyeing a third-straight close above the 60-day moving average, and now sports a 9% year-to-date gain.
The brokerage bunch is optimistic towards Solaredge Technologies stock, with 20 of the 27 analysts in question calling it a "buy" or better, while the 12-month consensus target price of $342.32 is an 11.2% premium to current levels.