Ormat Technologies

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The energy sector is going through a massive change in the face of global warming. As people are now demanding big companies to switch towards renewable energy sources, many are taking rapid actions. They are working on initiatives to move rapidly towards sustainable energy.

Energy stocks have always been the preferred choice for investors since they offer high returns. As the bigger players in the industry move towards renewable energy, we can expect to see an increase in their profitability. Renewable energy production cost way less than conventional methods.

Therefore, investors are keeping a close watch on companies like Ormat Technologies. This company has great potential since they use geothermal and renewable energy methods. Consequently, investors believe it can see a massive surge in its price.

Lucien and Dita Bronicki founded Ormat Technologies in 1965, and the company launched an IPO in 2004. The company is continuously enhancing its production capacity to cater to the growing demand for energy.
Also, Ormat Technologies supplies turbochargers to many regions, including Australia, New Zealand, Latin America, North America, and Asia. Here is the company’s financial overview.

  • Total equity: $ 218.99 million, as of 2020
  • Revenue: $705 million, as of 2020
  • Operating income: $193.8 million, as of 2019
  • Net income: $ 174.31 million, as of 2020
  • Total assets: $ 779.15 million, as of 2020

Let’s take a gander at the company’s future share price prediction and the historical performance of its stock.

Ormat Technologies Statistical Overview

Ormat Technologies Stock Forecast 2022

Despite having a rough last year, the stock price of Ormat Technologies has seen a steady rise in the first few months of 2022. Though it did see a slight fall in February, the company’s share price is continuously going on an upward trajectory. The stock price closed at around $76 on the first day of trading in 2022.

It plummeted to $65 by the last week of March. However, the share value recovered from the fall and closed at $78 by the last week of May 2022. Ormat Technologies plans for rapid expansion of its operations throughout various locations. Therefore, it is one of the most promising green energy stocks of 2022 that investors should keep an eye on.

Increasing pressure on governments to work on renewable energy is making investors turn towards green stocks. They are keen to invest in companies like Ormat Technologies with geothermal energy production. As the world moves towards renewable energy due to the growing concern about climate change, green energy stocks can help you diversify your portfolio.

The analysts at CNN have set a median price for the Ormat Technologies stock at $78.50 for the next 12 months. They expect the share price to remain more or less the same as its current value. Moreover, the analysts expect the price to go as high as $85 and as low as $75. In a nutshell, they don’t expect the stock price to see many fluctuations and remain stable throughout 2022.

Ormat Technologies Stock 2021

While the company’s stock price enjoyed growth in the last quarter of 2020, it saw a free fall in March 2021. The share prices touched $118 in the first week of February 2021 before crashing down to $80 within a matter of a few weeks. Ormat Technologies’ share price closed at the $79 mark on the last trading of 2021.

The primary reason for the fall in the share prices was due to the allegations by the short-seller Hindenburg against the company. He lobbied many accusations against Ormat Technologies, such as acts of international corruption. The company’s share price fell by 4% on the next trading day after the news broke out.

Ormat Technologies responded to these allegations and only served the purpose of misleading the investors. The company decided to take strong action against the short-seller, but it caused significant damage to Ormat Technologies’ share price.

Investors looked for safe havens as they pulled out their investments from the company. The allegations caused the biggest fall in Ormat Technologies’ share value in its history.

Ormat Technologies Stock 2020

The Covid-19 pandemic wreaked havoc on the stocks of many companies in different sectors. Stock markets around the globe plummeted and wiped out a significant portion of the investors’ wealth. Panic selling became the top cause for different companies’ to see a monumental fall in their value.

Ormat Technologies’ share price opened at around $75 in the first week of 2020. It saw a slight increase in its value and reached $85 by the last week of February 2020. After the outbreak and lockdown restrictions, the company’s stock plummeted to $63 in March 2020. The stock price continued to tumble down and reached $55.38 by the end of Q3 2020.

Nevertheless, it saw a huge spike, and the stock price surged, closing at $90 by the start of 2021. Due to the Covid-19 pandemic, many groups realized how a reduction in the consumption of fossil fuel and non-renewable energy could benefit the environment in the long run.

As more and more people stayed at home, the pollution levels started to decrease, and it had a positive impact on the overall environment. Therefore, the state governments throughout the US started emphasizing energy companies to focus more on renewable energy, particularly geothermal. Hence, the share price saw a spike from the end of Q3 to the next year.

Ormat Technologies Stock 2019

Unlike last year, Ormat Technologies’ share price increased gradually throughout 2019. The company’s share was the top pick for investors looking to get an energy stock in their portfolio. Thus, the high demand for the Ormat Technologies shares caused its price to go up.

The share opened at around $52 on the 7th of January 2019 and closed at $74.75 on the 30th of December 2019. Increasing demand for geothermal energy and pressure from climate protection groups, such as IPCC (Intergovernmental Panel on Climate Change), made the investors turn their eyes toward green stocks.

Furthermore, the laws and regulations by the Californian government for geothermal energy further strengthened its position. It gave the company new avenues to explore and expand operations in various regions. Investors viewed these developments with optimism, and they were keen to get shares of Ormat Technologies.

Ormat Technologies Stock 2018

The bull run of Ormat Technologies’ share price came to a stop in 2018 as the company’s stock continued to go down. Ormat Technologies’ share price opened at $65 at the start of the year. However, it couldn’t sustain its growth, and the stock price fell gradually throughout 2018. Eventually, the company’s stock price closed at $52 by the end of 2018.

The primary reason for the fall in share price was the Kilauea volcano eruption in 2018. In early May 2018, the volcano caused the Ormat Technologies and other geothermal power plants in that region to shut down. As a result, the revenue for the second and third quarters of 2018 declined.

While the company remained a leader in geothermal energy products, many investors were skeptical about its revenue growth. Consequently, many short betters took advantage of the opportunity, causing Ormat Technologies’ stock price to go down.

Ormat Technologies Stock 2017

The stock price of Ormat Technologies continued to enjoy the Bull Run from the previous year. The share price closed at $52.5 on the first day of the trading. It closed at $63.8 by the last week of December 2018. Investors’ confidence was boosted because of the exceptional numbers the company had posted throughout the year.

Consequently, they wanted to add the company’s share to their portfolio to enjoy long-term returns. In addition, Ormat Technologies was also eyeing closing the deal with the US Geothermal for its acquisition. The acquisition would have added more than 38MW to Ormat Technologies’ portfolio.

Ormat Technologies Stock 2016

2016 was a good year for the investors of Ormat Technologies since the company’s share price saw a tremendous change. The share price opened at $35.6 on the first day of trading in 2016. It continued to go on an upward trajectory before closing at $53 by the last week of December.

Part of the reason for this growth is the deal between Ormat Technologies and Cyrq Energy. The company’s affiliate signed a deal worth $36million with Cyrq Energy for Engineering, Procurement, and Construction (EPC). It made investors confident that the company’s stock revenue will enjoy growth in the coming years.

How to Invest in Ormat Technologies Stocks?

Investing in green energy stocks requires due diligence to make the right decisions at the right time. It is best to be sure about the company’s prospects and future growth forecast to make a successful investment in green energy stocks. Therefore, it requires you to carry out extensive research, comparative analysis, risk management, and forecast accuracy before you dive into the stock market.

Since there is an emphasis on renewable energy globally, investing in Ormat Technologies can help you earn a good return on your investment. Nevertheless, the stock market is full of surprises. The volatility makes it necessary for investors to focus on things like changing dynamics, acquisitions, laws, regulations, etc. All these things will help you make the right judgment call.

Most importantly, you will need to find a reputable online platform that allows you to invest quickly and conveniently. With so many options available, you’ll want to choose the best platform to invest in the stock market. Therefore, you should go for a platform like eToro that has been tested by many investors.

It has exceptional built-in features that give you an optimal investing experience. Whether you are an experienced investor or a beginner looking to enter the market, eToro is a one-stop solution. This tool allows you to check the changing market situation and keep you up-to-date on the latest developments.

Here are the simple steps you can follow to create an account on the eToro platform and start trading on it in a short time.

Step 1: Open an Account

First, you need to go on the platform and fill out the online application form. The form only needs a few basic details from you, so it won’t take much of your time.

Open an Account
Create Account

Step 2: Upload ID

The next step is to upload the proper documents for ID verification, including your last three months’ bank statement, driver’s license/passport, and utility bill. This step is critical to meeting the KYC and AML regulations.

Proof of identity

Step 3: Make a Deposit

Once you have the account, you can start investing in green energy stocks. But before that, you would have to deposit the amount you are looking to invest in shares.

The platform allows you to deposit money through your debit or credit card. In addition, it also accepts funds from other payment modes, such as PayPal accounts or bank wire transfers.

Make a Deposit

Step 4: Search for Ormat Technologies Stocks

Now that everything is ready, you can invest in the top energy stocks. You can use the search bar to find Ormat Technologies and click on the “trade” option to place a stock order.

In addition, the stop-loss feature allows you to minimize your loss in a highly volatile environment. You can set the price limit for the stock you want to buy or sell. The platform will initiate the transaction automatically if the share price hits that level.

Search for Ormat Technologies Stocks

Step 5: Buy Ormat Technologies Stocks

Buy for Ormat Technologies Stocks

Conclusion

Ormat Technologies has enjoyed steady growth in its share value over the last few years. The company is looking to expand into different regions and sign up deals with other businesses in the renewable energy industry. These initiatives can help the company increase its revenue in the long run and reduce its expenses.

Moreover, Ormat Technologies progressive strategy helps it understand the risks, mitigate the impact of changing situations, and evaluate the challenges ahead. It will strengthen the company’s overall position in the next few years. Therefore, investors looking to invest in green energy stocks should monitor the changes and developments from Ormat Technologies closely.

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