Canadian Solar (NASDAQ:CSIQ) Trading Down 8.8% - Time to Sell?

Key Points

• Canadian Solar shares fell 8.8% in mid-day trading, hitting an intraday low of $13.59 after closing at $14.69, with trading volume well below its average.
• Analysts remain cautious on the stock: recent moves included price-target cuts and downgrades, and the current consensus rating is Hold with a consensus price target of $19.36.
• The company’s latest earnings beat estimates on both EPS and revenue, but results still showed negative margins, declining year-over-year revenue, and an expected full-year loss.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s share price dropped 8.8% during mid-day trading on Friday . The company traded as low as $13.59 and last traded at $13.39. 1,432,576 shares were traded during mid-day trading, a decline of 50% from the average session volume of 2,887,967 shares. The stock had previously closed at $14.69.

Analysts Set New Price Targets

Several research firms have issued reports on CSIQ. Wells Fargo & Company decreased 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 report on Wednesday, April 8th. Wall Street Zen raised shares of Canadian Solar from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 23rd. Mizuho lifted their price objective on Canadian Solar from $15.00 to $18.00 and gave the stock a "neutral" rating in a report on Monday, June 15th. Weiss Ratings reissued a "sell (d+)" rating on shares of Canadian Solar in a report on Friday, March 27th. Finally, Freedom Capital downgraded Canadian Solar from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Canadian Solar presently has a consensus rating of "Hold" and a consensus price target of $19.36.

Canadian Solar Stock Down 8.8%

The stock has a market capitalization of $909.18 million, a price-to-earnings ratio of -5.32 and a beta of 1.51. The business's 50-day moving average is $16.43 and its two-hundred day moving average is $17.19. The company has a quick ratio of 0.81, a current ratio of 1.06 and a debt-to-equity ratio of 0.99.

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

Insiders Place Their Bets

In other news, Director Leslie Li Hsien Chang sold 1,767 shares of Canadian Solar stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $19.45, for a total transaction of $34,368.15. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Andrew Luen Cheung Wong sold 1,752 shares of the business's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $16.33, for a total transaction of $28,610.16. The disclosure for this sale is available in the SEC filing. Insiders own 21.50% of the company's stock.

Hedge Funds Weigh In On Canadian Solar

Institutional investors have recently bought and sold shares of the company. Invesco Ltd. grew its stake in shares of Canadian Solar by 19.3% in the 3rd quarter. Invesco Ltd. now owns 2,200,622 shares of the solar energy provider's stock valued at $28,696,000 after buying an additional 356,625 shares during the period. Legal & General Group Plc lifted its holdings in Canadian Solar by 13.0% in the third quarter. Legal & General Group Plc now owns 2,051,228 shares of the solar energy provider's stock valued at $26,741,000 after acquiring an additional 236,115 shares during the last quarter. Polunin Capital Partners Ltd purchased a new position in Canadian Solar in the fourth quarter worth approximately $43,692,000. Bank of America Corp DE increased its stake in Canadian Solar by 292.7% during the first quarter. Bank of America Corp DE now owns 1,071,486 shares of the solar energy provider's stock worth $14,840,000 after acquiring an additional 798,610 shares during the last quarter. Finally, Two Sigma Investments LP purchased a new stake in Canadian Solar in the third quarter valued at $11,544,000. 52.36% of the stock is 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.

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