What Happened?
Shares of energy and renewable energy projects company Ameresco (NYSE: AMRC) jumped 1.9% in the morning session after the company, along with its partners Republic Services and U.S. Energy, announced the completion of a renewable natural gas (RNG) facility.
The new facility is located at the Lee County Landfill in Dixon, Illinois. This event marked the 15th renewable energy project completed through the long-standing collaboration between Ameresco and Republic Services. This steady progress in developing energy projects highlights the strength of the partnership and Ameresco's consistent execution in the renewable energy sector, which investors viewed positively.
After the initial pop the shares cooled down to $32.52, up 1.2% from previous close.
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What Is The Market Telling Us
Ameresco’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 7.1% as investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points yesterday and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
Ameresco is up 29.4% since the beginning of the year, but at $32.52 per share, it is still trading 16.1% below its 52-week high of $38.78 from September 2024. Investors who bought $1,000 worth of Ameresco’s shares 5 years ago would now be looking at an investment worth $1,079.
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