Why Hawaiian Electric Plunged 35.2% in August
Shares of embattled utility Hawaiian Electric (NYSE: HE) fell 35.2% in August, according to data from S&P Global Market Intelligence.
The electric utility was hit late last year by the tragic wildfires of August 2023, which mired the company in a legal mess. Early in the month Hawaiian Electric reached a payout settlement with plaintiffs, which seemed favorable for the utility. But a company filing raised the prospects of bankruptcy, and the final settlement amount still remains in question.
It should be noted that Hawaiian Electric's stock had soared in July, after it was reported that Maui County would take up a resolution to settle all claims against the defendants, the biggest of which was Hawaiian Electric. The prospect of a settlement encouraged investors that a deal would be reached that might hurt Hawaiian, but keep it solvent.
Source Fool.com
