First Solar (NASDAQ:FSLR) Cut to "Hold" at Glj Research

Key Points

• Glj Research downgraded First Solar to “Hold” from “Buy” and set a $161 price target, implying roughly 7.2% downside from the reported $173.50 share price. Despite mixed analyst actions, the broader consensus remains “Moderate Buy” with a $259.90 target.
• First Solar beat third-quarter EPS estimates, reporting $5.30 versus $4.67 expected, but revenue fell 22.8% year over year to $1.23 billion and missed forecasts. The stock was down 1.9% during Friday trading.
• Analyst concerns include weaker revenue and guidance, higher interest rates, and valuation risks, although a $500 million buyback, new perovskite technology licensing, and expanded U.S. manufacturing capacity provide potential growth supports.

First Solar (NASDAQ:FSLR - Get Free Report) was downgraded by investment analysts at Glj Research from a "buy" rating to a "hold" rating in a research report issued on Friday, Benzinga reports. They currently have a $161.00 price target on the solar cell manufacturer's stock. Glj Research's target price suggests a potential downside of 7.20% from the company's current price.

FSLR has been the topic of a number of other reports. HSBC upgraded First Solar from a "hold" rating to a "buy" rating in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft downgraded shares of First Solar from a "buy" rating to a "hold" rating in a research report on Thursday, August 27th. JPMorgan Chase & Co. dropped their price target on First Solar from $256.00 to $252.00 and set an "overweight" rating on the stock in a research report on Monday, October 19th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of First Solar in a research note on Friday. Finally, Weiss Ratings cut First Solar from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, First Solar currently has an average rating of "Moderate Buy" and a consensus target price of $259.90.

First Solar Stock Down 1.9%

First Solar stock traded down $3.40 during mid-day trading on Friday, reaching $173.50. The company had a trading volume of 763,256 shares, compared to its average volume of 2,340,392. The firm has a market cap of $18.64 billion, a price-to-earnings ratio of 10.66, a PEG ratio of 0.48 and a beta of 1.80. The company has a 50 day moving average of $189.51 and a 200-day moving average of $216.51. First Solar has a 52 week low of $165.86 and a 52 week high of $320.95.

First Solar (NASDAQ:FSLR - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The solar cell manufacturer reported $5.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.67 by $0.63. First Solar had a net margin of 32.47% and a return on equity of 18.02%. The company had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the previous year, the firm posted $4.24 EPS. The business's revenue was down 22.8% compared to the same quarter last year. On average, analysts predict that First Solar will post 17.63 earnings per share for the current fiscal year.

Insider Activity at First Solar

In other First Solar news, General Counsel Jason E. Dymbort sold 3,700 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $249.38, for a total value of $922,706.00. Following the transaction, the general counsel directly owned 5,624 shares of the company's stock, valued at $1,402,513.12. This trade represents a 39.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Samantha L. Sloan sold 127 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $222.95, for a total value of $28,314.65. Following the transaction, the executive vice president directly owned 2,018 shares of the company's stock, valued at $449,913.10. This trade represents a 5.92% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,681 shares of company stock valued at $3,756,286 in the last 90 days. Insiders own 0.39% of the company's stock.

Institutional Investors Weigh In On First Solar

Hedge funds have recently modified their holdings of the company. Fiduciary Financial Group LLC boosted its position in shares of First Solar by 2.3% during the 2nd quarter. Fiduciary Financial Group LLC now owns 2,026 shares of the solar cell manufacturer's stock worth $478,000 after purchasing an additional 45 shares in the last quarter. Burford Brothers Inc. lifted its position in shares of First Solar by 0.3% during the first quarter. Burford Brothers Inc. now owns 19,131 shares of the solar cell manufacturer's stock valued at $3,774,000 after purchasing an additional 51 shares in the last quarter. Hilltop Holdings Inc. boosted its holdings in First Solar by 3.5% during the first quarter. Hilltop Holdings Inc. now owns 1,608 shares of the solar cell manufacturer's stock worth $317,000 after purchasing an additional 54 shares during the last quarter. TD Waterhouse Canada Inc. grew its position in First Solar by 0.3% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 17,102 shares of the solar cell manufacturer's stock worth $3,973,000 after purchasing an additional 55 shares in the last quarter. Finally, Cox Capital Mgt LLC grew its position in First Solar by 0.4% in the 3rd quarter. Cox Capital Mgt LLC now owns 13,989 shares of the solar cell manufacturer's stock worth $2,450,000 after purchasing an additional 58 shares in the last quarter. Institutional investors and hedge funds own 92.08% of the company's stock.

Key Stories Impacting First Solar

Here are the key news stories impacting First Solar this week:

• Positive Sentiment: First Solar reported third-quarter adjusted earnings of $5.30 per share, well above the $4.67 analyst consensus and up from $4.24 a year earlier. The company also authorized a $500 million share-repurchase program, which could support per-share results and signal management confidence. First Solar Announces Third Quarter Results and Buyback
• Positive Sentiment: First Solar signed a non-exclusive U.S. patent-licensing agreement with CubicPV covering perovskite solar technology. The agreement may accelerate development of next-generation photovoltaic products and strengthen the company’s competitive position. First Solar and CubicPV Patent Licensing Agreement
• Positive Sentiment: The company inaugurated the first phase of its South Carolina production facility. The approximately $330 million site is expected to reach 3.4 gigawatts of annual capacity after its second phase is completed, expanding domestic manufacturing capabilities. South Carolina Production Facility
• Neutral Sentiment: Needham lowered its price target from $303 to $236 but maintained a Buy rating, implying substantial potential upside if First Solar’s backlog, margins and technology investments support future growth.
• Negative Sentiment: Third-quarter revenue fell 22.8% year over year to $1.23 billion, missing the $1.29 billion consensus estimate. Management’s full-year revenue guidance midpoint of $4.75 billion was reported as roughly 5.7% below analysts’ expectations, overshadowing the earnings beat. First Solar Q3 Sales Miss
• Negative Sentiment: Sanford C. Bernstein cut its price target from $197 to $169 and downgraded First Solar to Underperform. Higher interest rates remain an additional risk for utility-scale solar project economics and valuation.

About First Solar

First Solar, Inc is a vertically integrated solar technology and manufacturing company that designs, manufactures and sells photovoltaic (PV) solar modules. Its modules use advanced thin-film semiconductor technology based on cadmium telluride (CdTe), rather than the crystalline-silicon technology used by most solar manufacturers. The company serves utility-scale solar developers, commercial and industrial customers, and other large-scale energy users.

Founded in 1999 and headquartered in Tempe, Arizona, First Solar operates research and development, manufacturing and recycling facilities in the United States and internationally.

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