Pineapple Energy Stock Jumps After Co Says Lease Termination Will Save $480,000: Retail Investors Cheer

Shares of solar energy service provider Pineapple Energy Inc ($PEGY) rose nearly 5% on Thursday morning after the firm announced the termination of the operating lease for its former corporate office in Minnetonka, Minnesota.

The company believes that the termination of the lease, which was scheduled to expire in 2027, is expected to save approximately $17,500 per month or $210,000 a year in associated rent. “There was a one-time buyout fee associated with the lease termination agreement, and the company will spread payment of that fee over the next 14-months,” it said.

PEGY shares ranked among the top five trending tickers on Stocktwits following the announcement.

Pineapple Energy said that after considering the remaining years on the terminated lease, other related costs, and the impact of the buyout fee, total savings are estimated at approximately $480,000.

Interim CEO Scott Maskin noted that the termination of the lease is part of the firm’s ongoing cost reduction initiatives and reflects its efforts to centralize operations in its current primary markets of Long Island, NY and Hawaii.

“We are authoring a new future for the company, an important part of which is properly aligning our cost structure to help us deliver long-term value to our shareholders,” he said.

Following the announcement, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (71/100), accompanied by high message volume.

Stocktwits users with a bullish outlook on the firm are expressing hope that the stock may see a rally in the coming times.

One user believes the stock is likely to hit the $8 mark soon.

Notably, shares of PEGY have lost over 98% since the beginning of the year. Going forward, investors will be keenly analyzing every step taken by the firm to cut costs and improve its metrics.

Also See: PIXY Stock Jumps After Acquisition Of TurboScale: Retail Turns Extremely Bullish

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