Canadian Solar (NASDAQ:CSIQ) Trading Down 5.5% After Analyst Downgrade

Key Points

• Oppenheimer cut its price target on Canadian Solar from $38.00 to $19.00, and the stock fell about 5.5% intraday to as low as $13.51 on unusually light volume (≈717,078 shares, down 76% vs. average).
• Analyst sentiment is mixed: three Buy, five Hold and four Sell ratings produce an average rating of "Reduce" and a consensus price target of $19.56.
• Fundamentals are weak after the latest quarter—EPS missed at $(1.66) vs. $(1.10) expected and revenue fell 20% to $1.22B—while the company shows a negative PE and a market cap of about $898.7M.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s stock price dropped 5.5% during mid-day trading on Monday after Oppenheimer lowered their price target on the stock from $38.00 to $19.00. Oppenheimer currently has an outperform rating on the stock. Canadian Solar traded as low as $13.51 and last traded at $13.47. Approximately 717,078 shares traded hands during trading, a decline of 76% from the average daily volume of 2,985,168 shares. The stock had previously closed at $14.26.

CSIQ has been the subject of several other reports. Daiwa Securities Group raised Canadian Solar from a "neutral" rating to an "outperform" rating and set a $30.00 price objective for the company in a report on Tuesday, December 2nd. Weiss Ratings reiterated a "sell (d+)" rating on shares of Canadian Solar in a research note on Monday, December 29th. Finally, Mizuho upgraded shares of Canadian Solar from an "underperform" rating to a "neutral" rating and dropped their price objective for the company from $21.00 to $19.00 in a research note on Tuesday, March 17th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $19.56.

Hedge Funds Weigh In On Canadian Solar

A number of large investors have recently bought and sold shares of CSIQ. Hsbc Holdings PLC purchased a new position in Canadian Solar during the fourth quarter worth about $278,000. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Canadian Solar during the 4th quarter worth approximately $1,140,000. Caitong International Asset Management Co. Ltd increased its position in Canadian Solar by 427.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 16,879 shares of the solar energy provider's stock worth $401,000 after purchasing an additional 13,681 shares during the period. Virtu Financial LLC purchased a new position in shares of Canadian Solar during the 4th quarter worth approximately $410,000. Finally, Voloridge Investment Management LLC acquired a new stake in shares of Canadian Solar in the 4th quarter valued at approximately $6,013,000. Hedge funds and other institutional investors own 52.36% of the company's stock.

Canadian Solar Stock Performance

The company has a debt-to-equity ratio of 0.97, a current ratio of 1.02 and a quick ratio of 0.83. The stock has a market capitalization of $898.74 million, a PE ratio of -5.37 and a beta of 1.31. The stock has a 50 day moving average of $19.45 and a two-hundred day moving average of $19.74.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The solar energy provider reported ($1.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.10) by ($0.56). Canadian Solar had a negative return on equity of 4.95% and a negative net margin of 1.86%.The business had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.37 billion. During the same quarter in the previous year, the company posted $0.48 EPS. The company's revenue was down 20.0% compared to the same quarter last year. Research analysts expect that Canadian Solar Inc. will post -0.23 EPS for the current fiscal year.

About Canadian Solar

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.

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