Benzinga - by Piero Cingari, Benzinga Staff Writer. Hawaiian Electric Industries Inc. (NYSE:HE), a Hawaii-based utility company, witnessed another substantial drop of 15.34% in its stock on Thursday, bringing the monthly plummet to nearly 70%.
This plunge propels the company’s shares toward levels not observed since October 1987.
The situation is exacerbated by mounting concerns over the company’s involvement in the Maui wildfires and reports by the Wall Street Journal suggesting discussions with restructuring advisory firms to tackle its mounting financial and legal challenges.
Hawaiian Electric’s Regulatory Woes, Financial Repercussions
S&P Global Ratings responded to these challenges by downgrading Hawaiian Electric to the junk status “BB-” and placing it under further watch for potential downgrades.The downgrade reflects the damage sustained to the company’s customer base due to the wildfires and class action lawsuits accusing the company of igniting the fires.
The wildfires inflicted substantial harm to Hawaiian Electric’s profitability metrics, leading to a long-term erosion of its financial health.
As the company grapples with these cascading setbacks, its shares experienced trading halts Wednesday and Thursday, underscoring the tumultuous nature of the situation.
Chart: Hawaiian Electric Stock Looms At 40-Year Lows
The downward trajectory has brought the Hawaiian utility closer to a near four-decade low, marking a worrying trend for the company.
Shares of Hawaiian Electric Industries Inc. have also broken below the price support represented by the March 9, 2009 low of $12.
In a synchronized movement, the 14-day relative strength index (RSI) has reached an unprecedented oversold level of 4.90, closely mirrored by the 14-week RSI at 13.77 and the 14-month RSI at 22.90, all marking their respective all-time lows.
Below the current levels, the next support can be found in the range of $9.80-10, which held strong from November 1984 to November 1985. Yet, due to the high uncertainty about the company’s future, any potential levels to watch should be taken with caution.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock.
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