In this article, we discuss 10 most popular green energy stocks among elite hedge funds. If you want to skip our detailed analysis of these stocks, go directly to 5 Most Popular Green Energy Stocks Among Elite Hedge Funds.
The rising demand for clean and renewable energy, sponsorships by the government for green energy initiatives, and increased electricity and energy consumption have caused the global renewable energy market to surge exponentially. Allied Market Research recently published a report which estimated that the global renewable energy sector was valued at $881.7 billion in 2020, and is projected to grow to $1,977.6 billion by 2030, reflecting a CAGR of 8.4% from 2021 to 2030.
The renewable energy market is helped by rapid technology improvements and lower costs, as well as increasing competition in the market which leads to the most efficient use of competitive energy sources. Capacity installations in 2021 remained at a record high, although the COVID-19 pandemic gave rise to disrupted supply chains, higher shipping costs, and increased prices for primary commodities. Wind and solar capacity additions grew to 33% through October 2021 over the previous year.
2022 is projected to be a commemorable year for renewable energy, as climate change and environmental, social, and governance considerations are a cause of concern for the public, the government, and businesses alike. In addition to that, the Biden administration’s vision to completely decarbonize the US economy is generating higher activity in the renewable energy sector, which will likely accelerate future growth.
Companies like NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and Sunrun Inc. (NASDAQ:RUN) are some of the leading renewable energy market players.
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Our Methodology
Insider Monkey tracked 924 hedge fund in the last quarter of 2021. In this article we picked the most popular green energy stocks among these hedge funds.
Most Popular Green Energy Stocks Among Elite Hedge Funds
10. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holders: 18
Canadian Solar Inc. (NASDAQ:CSIQ) is an Ontario-based company that develops and markets solar photovoltaic modules and photovoltaic systems. Canadian Solar Inc. (NASDAQ:CSIQ) operates significant solar projects and is a notable participant in the renewable energy industry.
In Q4 2021, 18 hedge funds in the database of 924 elite hedge funds were bullish on Canadian Solar Inc. (NASDAQ:CSIQ), with collective stakes amounting to $39.5 million, up from 12 funds a quarter earlier, holding stakes in Canadian Solar Inc. (NASDAQ:CSIQ) worth $35.7 million. D E Shaw owned an $8.85 million stake in the company in the fourth quarter of 2021, making it a prominent shareholder.
Canadian Solar Inc. (NASDAQ:CSIQ) is gaining traction among the smart investor circles, just like NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and Sunrun Inc. (NASDAQ:RUN).
9. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 20
Headquartered in San Jose, California, SunPower Corporation (NASDAQ:SPWR) manufactures and sells solar power products, including panels, batteries, mounting hardware, and monitoring software. TotalEnergies SE (NYSE:TTE) owns a controlling interest in SunPower Corporation (NASDAQ:SPWR) as of 2011.
SunPower Corporation (NASDAQ:SPWR) reported its Q4 results on February 16, posting a GAAP EPS of $0.11, exceeding estimates by $0.15. Revenue over the period jumped 12.50% year-over-year to $384.53 million, outperforming market consensus by $14.76 million.
On February 17, Baird analyst Ben Kallo lowered the price target on SunPower Corporation (NASDAQ:SPWR) to $20 from $34 but kept an Outperform rating on the shares. The analyst noted that SunPower Corporation (NASDAQ:SPWR) continues to transform into a residential-focused solar energy solutions company and with the recent announcement of the sale of its commercial and industrial unit to TotalEnergies SE (NYSE:TTE) for $250 million, he estimates that the company is now strategically complete and stock is poised to outperform.
According to the fourth quarter database of Insider Monkey, 20 hedge funds held long positions in SunPower Corporation (NASDAQ:SPWR), with combined stakes valued at $118 million, as compared to 22 funds holding stakes worth roughly $178 million in SunPower Corporation (NASDAQ:SPWR) in the prior quarter. Citadel Investment Group is a significant shareholder of the company, with 943,543 shares worth $19.6 million.
8. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 21
Clearway Energy, Inc. (NYSE:CWEN) is a leading American clean energy company that supplies low cost, clean power generated by solar and wind to customers across the United States.
Clearway Energy, Inc. (NYSE:CWEN) on February 17 declared a $0.3468 per share quarterly dividend, a 2% increase from its prior dividend of $0.3400. With a forward yield of 4.31%, the dividend is payable on March 15, to shareholders of record on March 1.
Oppenheimer analyst Noah Kaye upgraded Clearway Energy, Inc. (NYSE:CWEN) on November 11 to Outperform from Perform with a $44 price target. The analyst stated that the company’s “material strategic progress” supports its long-term portfolio and dividend growth objectives.
Elite hedge funds held large stakes in Clearway Energy, Inc. (NYSE:CWEN) in Q4 2021. The fourth quarter database of Insider Monkey reported that 21 elite funds were long Clearway Energy, Inc. (NYSE:CWEN), up from 17 funds in the prior quarter. Renaissance Technologies owned the biggest position in the company, with 1.2 million shares worth $41 million.
7. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 23
Plug Power Inc. (NASDAQ:PLUG) is a New York-based developer of hydrogen fuel cell systems that replace conventional batteries in electric powered machinery, equipment, and vehicles. The company offers clean hydrogen and cost-effective zero emission fuel cell solutions.
A total of 23 hedge funds in the fourth quarter database of Insider Monkey held long positions in Plug Power Inc. (NASDAQ:PLUG), with collective stakes amounting to roughly $282 million, up from 20 funds in the quarter earlier, holding stakes in Plug Power Inc. (NASDAQ:PLUG) worth $360.4 million.
In its 2022 guidance, published on January 19, Plug Power Inc. (NASDAQ:PLUG)’s management is sticking to the 2025 guidance released last year and maintains that the “target business model” will have 30% gross margins in 2025, and a 17% operating margin, on $3 billion in sales. The company estimates revenues of $900 million to $925 million in 2022 revenue, compared to market consensus of $900 million.
On February 17, Plug Power Inc. (NASDAQ:PLUG) purchased Joule for a total consideration of up to $160 million, with $30 million upfront and $130 million of future earn outs based on meeting liquefier efficiency, third-party sales, and gross margin targets. Joule’s liquefaction process is being deployed in Plug Power Inc. (NASDAQ:PLUG)’s green hydrogen plant under development in Texas.
Riley analyst Christopher Souther on February 9 lowered the price target on Plug Power Inc. (NASDAQ:PLUG) to $31 from $45 and kept a Buy rating on the shares. The analyst recommends taking advantage of weakness around “short-term disruptions” for individual sustainable energy companies or the sector overall “provided the volatility hasn’t impacted the longer-term growth thesis”. However, he lowered price targets across the board to reflect multiple compression.
6. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) is a California-based alternative energy company which manufactures solid oxide fuel cells that produce electricity. The company benefits from government sponsored incentive programs for green energy.
On February 10, Bloom Energy Corporation (NYSE:BE) announced earnings for the fourth quarter. The company posted a loss per share of $0.05, missing estimates by $0.01. The $342.47 million revenue was up 37.33% year-on-year, surpassing estimates by $33.53 million.
BofA analyst Julien Dumoulin-Smith upgraded Bloom Energy Corporation (NYSE:BE) on February 14 to Buy from Neutral with a price target of $29, up from $28, following what he called an “uncharacteristically strong year-end financial performance”, arguing that the company’s margin improvement is the “most tangible manifestation of the turnaround”.
In Q4 2021, 25 hedge funds were bullish on Bloom Energy Corporation (NYSE:BE), with stakes valued at $92 million, up from 18 funds in the quarter prior, holding stakes in the company worth roughly $43 million. Marshall Wace LLP held a significant position in Bloom Energy Corporation (NYSE:BE) as of Q4, with 1.12 million shares worth $24.6 million.
In addition to NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and Sunrun Inc. (NASDAQ:RUN), Bloom Energy Corporation (NYSE:BE) is a notable player in the green energy market.
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Disclosure: None. 10 Most Popular Green Energy Stocks Among Elite Hedge Funds is originally published on Insider Monkey.
