NEW YORK (TheStreet) -- Shares of SunEdison (SUNE) are soaring by 10.23% to $2.91 in pre-market trading on Monday, as the company will give billionaire investor David Einhorn's Greenlight Capital a board seat.
The move comes after a steep drop in the solar company's share 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.
The agreement may be announced this week and would give the hedge fund more say in one of its most problematic investments, the Journal added.
SunEdison has cut jobs, sold assets and increased new debt as its stock price has fallen since July, which has elevated investor worries about its liquidity and the durability of its business model.
The Maryland Heights, MO-based solar company announced that its COO and another independent board member were leaving last week. In November, independent directors at two of its subsidiaries resigned after a management shakeup, the Journal added.
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: SUNESUNE data by YCharts