Canadian Solar (NASDAQ:CSIQ) Shares Up 8.6% - Should You Buy?

Key Points

• Canadian Solar shares rose 8.6% to about $16.38, but trading volume was significantly below average.
• Analysts remain cautious, with a consensus “Hold” rating and a $19.36 average price target; recent targets range from $17 to $18.
• The company beat quarterly EPS and revenue expectations, but revenue fell 9.9% year over year, profitability remained negative, and analysts expect a full-year loss.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s share price traded up 8.6% during trading on Monday . The company traded as high as $15.94 and last traded at $16.3830. Approximately 421,113 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 2,849,396 shares. The stock had previously closed at $15.08.

Analysts Set New Price Targets

A number of research analysts recently weighed in on CSIQ shares. Wall Street Zen raised Canadian Solar from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 23rd. Freedom Capital cut Canadian Solar from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 19th. Mizuho boosted their price objective on Canadian Solar from $15.00 to $18.00 and gave the company a "neutral" rating in a report on Monday, June 15th. Citigroup raised Canadian Solar from a "sell" rating to a "neutral" rating and upped their target price for the stock from $11.00 to $18.00 in a research report on Wednesday, July 22nd. Finally, Wells Fargo & Company reduced their price target on shares of Canadian Solar from $23.00 to $17.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 8th. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $19.36.

Canadian Solar Price Performance

The firm has a market cap of $1.07 billion, a price-to-earnings ratio of -6.28 and a beta of 1.51. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.81 and a current ratio of 1.06. The business has a 50 day simple moving average of $16.02 and a 200-day simple moving average of $16.88.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last issued its quarterly earnings data on Friday, May 15th. The solar energy provider reported ($0.71) EPS for the quarter, topping analysts' consensus estimates of ($1.06) by $0.35. Canadian Solar had a negative return on equity of 4.20% and a negative net margin of 1.87%.The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $950.43 million. During the same period in the previous year, the company posted ($1.07) EPS. The company's revenue for the quarter was down 9.9% on a year-over-year basis. Equities research analysts expect that Canadian Solar Inc. will post -1.81 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Leslie Li Hsien Chang sold 1,767 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $19.45, for a total value of $34,368.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Andrew Luen Cheung Wong sold 1,752 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $16.33, for a total value of $28,610.16. The SEC filing for this sale provides additional information. Corporate insiders own 21.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CSIQ. Invesco Ltd. grew its holdings in shares of Canadian Solar by 19.3% in the third quarter. Invesco Ltd. now owns 2,200,622 shares of the solar energy provider's stock valued at $28,696,000 after acquiring an additional 356,625 shares in the last quarter. Legal & General Group Plc boosted its position in Canadian Solar by 13.0% during the third quarter. Legal & General Group Plc now owns 2,051,228 shares of the solar energy provider's stock worth $26,741,000 after purchasing an additional 236,115 shares during the period. Bank of America Corp DE raised its holdings in Canadian Solar by 292.7% during the 1st quarter. Bank of America Corp DE now owns 1,071,486 shares of the solar energy provider's stock valued at $14,840,000 after acquiring an additional 798,610 shares during the period. Two Sigma Investments LP bought a new stake in shares of Canadian Solar during the 3rd quarter valued at $11,544,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Canadian Solar by 20.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 842,703 shares of the solar energy provider's stock worth $9,539,000 after buying an additional 145,867 shares in the last quarter. 52.36% of the stock is currently owned by hedge funds and other institutional investors.

Canadian Solar Company Profile

Canadian Solar Inc NASDAQ: CSIQ is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world's largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.