NEW YORK (TheStreet) -- Shares of SunEdison (SUNE) are popping by 5.66% to $2.80 on Monday afternoon, as the solar company will give billionaire investor David Einhorn's Greenlight Capital a seat on its board.
The move comes after a steep decline in the Maryland Heights, MO-based company's stock price and the departure of some senior officials, according to sources cited by the Wall Street Journal.
The hedge fund, which owned about 8% of the company as of January 11, will likely appoint a director from outside of Greenlight.
Steve Tesoriere resigned his seat on SunEdison's board on January 19 and a replacement has not been announced, Bloomberg added.
An appointment could come this week and would give Greenlight more say in one of its most problematic investments.
The company's shares have plunged 85% in the past year, which is the greatest on the 104-member WilderHill New Energy Global Innovation index, Bloomberg noted.
SunEdison is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets and a developer and manufacturer of silicon wafers.
Separately, TheStreet Ratings Team has a "sell" rating with a score of D.
This is driven by some concerns, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SUNE