Canadian Solar (NASDAQ:CSIQ) Trading Down 19.2% - Here's Why

Key Points

• Canadian Solar shares fell 19.2% as investors reacted to the company’s outlook, with the stock dropping from a prior close of $20.05 to around $16.21.
• First-quarter results were stronger than expected, with a smaller-than-forecast loss of $0.71 per share and revenue of $1.08 billion beating estimates. Solar module shipments also topped guidance at 2.5 GW.
• Weak second-quarter revenue guidance appears to be the main concern, as the company projected $1.0 billion to $1.2 billion versus consensus near $1.6 billion, signaling possible slowing growth after the Q1 beat.

Shares of Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) traded down 19.2% on Thursday . The company traded as low as $16.57 and last traded at $16.2060. 2,401,589 shares were traded during trading, a decline of 17% from the average session volume of 2,900,493 shares. The stock had previously closed at $20.05.

Trending Headlines about Canadian Solar

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

• Positive Sentiment: Canadian Solar reported a smaller-than-expected first-quarter loss of $0.71 per share versus the $1.06 estimate, and revenue of $1.08 billion topped Wall Street’s $950.4 million forecast. The company also said solar module shipments reached 2.5 GW, above guidance of 2.2 GW to 2.4 GW. Article Title
• Positive Sentiment: The company’s Q1 update and earnings call highlighted better-than-expected operational execution, which helped support a rebound in the shares earlier in the session. Article Title
• Neutral Sentiment: Canadian Solar also announced a CEO appointment alongside the earnings release, a governance change that may be relevant for longer-term strategy but is not the main driver of near-term trading. Article Title
• Negative Sentiment: Investor enthusiasm was tempered by disappointing second-quarter revenue guidance of $1.0 billion to $1.2 billion, well below the roughly $1.6 billion consensus estimate, raising concerns that growth is slowing after the strong Q1 beat. Article Title
• Negative Sentiment: Although Q1 losses improved year over year, revenue was still down 9.9% from a year earlier, underscoring margin and demand pressure in the solar business. Article Title

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Weiss Ratings reissued a "sell (d+)" rating on shares of Canadian Solar in a report on Friday, March 27th. Freedom Capital raised shares of Canadian Solar from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 24th. Wells Fargo & Company lowered their price objective on shares of Canadian Solar from $23.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 8th. Mizuho decreased their target price on Canadian Solar from $19.00 to $15.00 and set a "neutral" rating on the stock in a research report on Monday, March 23rd. Finally, Wall Street Zen lowered shares of Canadian Solar from a "hold" rating to a "strong sell" rating in a research report on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, five have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, Canadian Solar currently has an average rating of "Hold" and an average price target of $18.36.

Canadian Solar Stock Performance

The company has a market capitalization of $1.22 billion, a PE ratio of -7.18 and a beta of 1.44. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.83 and a current ratio of 1.02. The stock's fifty day simple moving average is $15.16 and its 200-day simple moving average is $20.04.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last announced its quarterly earnings data on Friday, May 15th. The solar energy provider reported ($0.71) earnings per share for the quarter, topping the consensus estimate of ($1.06) by $0.35. The business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $950.43 million. Canadian Solar had a negative net margin of 1.86% and a negative return on equity of 4.95%. The company's revenue was down 9.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($1.07) EPS. As a group, equities analysts predict that Canadian Solar Inc. will post -2.02 earnings per share for the current year.

Hedge Funds Weigh In On Canadian Solar

Hedge funds and other institutional investors have recently modified their holdings of the stock. JPMorgan Chase & Co. raised its stake in shares of Canadian Solar by 206.6% in the third quarter. JPMorgan Chase & Co. now owns 571,893 shares of the solar energy provider's stock worth $7,457,000 after acquiring an additional 385,355 shares during the last quarter. Polunin Capital Partners Ltd bought a new position in shares of Canadian Solar in the fourth quarter worth about $43,692,000. GF Fund Management CO. LTD. bought a new position in shares of Canadian Solar in the fourth quarter worth about $6,260,000. Hussman Strategic Advisors Inc. bought a new position in shares of Canadian Solar in the fourth quarter worth about $2,995,000. Finally, Tudor Investment Corp ET AL bought a new position in shares of Canadian Solar in the third quarter worth about $5,008,000. Institutional investors own 52.36% of the company's stock.

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.