NEW YORK (TheStreet) -- Shares of TerraForm Power (TERP) - Get Report are soaring 12% to $9.80 on heavy trading volume Wednesday afternoon after Brookfield Asset Management (BAM) revealed a 12.13% stake in the company, the Fly reports.
Brookfield owns more than 11 million shares of the Bethesda, MD-based owner of power generation assets.
The Toronto-based alternative asset manager said it believes TerraForm's equity is an "attractive investment opportunity" and that it acquired Class A shares and entered into the swap agreements, according to a regulatory filing cited by the Fly.
Some of Brookfield's affiliates are also making attempts to acquire the company's stock.
The firm added that it may "participate in and influence the affairs" of TerraForm through its voting rights, the Fly said.
Brookfield may engage in or continue to engage in communications with one or more security holders of TerraForm and/or SunEdison (SUNEQ), "including advisors and representatives of SUNE and its security holders engaged in SUNE's bankruptcy-related proceedings," the filing noted.
TerraForm is one of SunEdison's yieldcos.
About 4.27 million of the TerraForm's shares changed hands so far today vs. its average volume of 2.87 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on TerraForm stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally high debt management risk.
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: TERP