SUNation Energy, Inc. (NASDAQ:SUNE) shares pulled back in premarket trading Friday after a sharp rally in the previous session.
The stock had surged 37.5% on Thursday following the company's post-market earnings release, which showed robust revenue growth and a return to profitability driven by strong residential demand.
Revenue escalated 77% year over year to $27.2 million. Strong residential demand in New York and Hawaii led this growth. Customers accelerated activity ahead of the Section 25D sunset.
Profitability Metrics Show Significant Turnaround
The company reported a shift in earnings. Gross profit rose to $11.1 million from $5.6 million. Gross margin expanded to 40.7% from 36.4% in the prior-year quarter.
Earnings per share reached $1.81 for the quarter. Adjusted EBITDA hit $4.1 million, compared to a $1.1 million loss in the fourth quarter of 2024.
Short Interest And Future Outlook
Short interest in SUNE recently fell from 702,430 to 347,890 shares. Currently, 10.21% of the public float remains short.
Management warns seasonality impacts the first quarter. However, the company aims to enhance 2026 offerings with the Generac full-home ecosystem.
Technical Analysis
SUNE is trading 34.7% above its 20-day simple moving average (SMA) and 45.4% above its 100-day SMA, showing the recent rebound is still holding above key trend gauges despite Friday's premarket dip.
Shares are down 97.80% over the past 12 months and are positioned much closer to their 52-week lows of 68 cents than their highs of $126.00.
The RSI is at 67.94, which sits in neutral territory. MACD is bullish with the MACD line at 0.0446 above the signal line at 0.0080.
- Key Resistance: $2.00
- Key Support: $1.50
SUNE Price Action: SUNation Energy shares were down 6.57% at $1.85 during premarket trading on Friday, according to Benzinga Pro data.
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