First Solar, Inc. (NASDAQ:FSLR) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts collectively rate First Solar “Moderate Buy.” Of 37 analysts, 23 recommend buying and one recommends a strong buy; the average 12-month price target is $266.53.
• First Solar reported quarterly EPS of $3.92, beating estimates of $2.90, while revenue reached $1.06 billion but declined 3.4% year over year.
• Valuation supports the shares, but industry risks remain. KeyBanc removed its bearish stance, while elevated inventory, slow project starts and potential pricing pressure continue to weigh on the outlook.

Shares of First Solar, Inc. (NASDAQ:FSLR - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the thirty-seven research firms that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation, twenty-three have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $266.53.

A number of brokerages have recently issued reports on FSLR. Argus restated a "buy" rating and issued a $275.00 target price on shares of First Solar in a research note on Wednesday, August 26th. BMO Capital Markets downgraded First Solar from a "hold" rating to a "market perform" rating in a research note on Thursday, August 27th. Sanford C. Bernstein cut their price objective on First Solar from $217.00 to $197.00 and set an "underperform" rating on the stock in a research note on Friday, July 31st. Raymond James Financial assumed coverage on First Solar in a report on Thursday, August 27th. They set a "market perform" rating on the stock. Finally, Robert W. Baird lowered their price target on First Solar from $318.00 to $290.00 and set an "outperform" rating for the company in a report on Tuesday, September 22nd.

Insider Buying and Selling

In other news, EVP Samantha Sloan sold 127 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $222.95, for a total transaction of $28,314.65. Following the sale, the executive vice president directly owned 2,018 shares in the company, valued at approximately $449,913.10. This represents a 5.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Markus Gloeckler sold 3,425 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $218.95, for a total value of $749,903.75. Following the transaction, the chief technology officer owned 7,471 shares of the company's stock, valued at $1,635,775.45. This represents a 31.43% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 15,881 shares of company stock valued at $3,617,086 over the last three months. 0.39% of the stock is owned by company insiders.

Institutional Trading of First Solar

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in First Solar during the 2nd quarter valued at about $3,310,298,000. ABS Investment Management LLC acquired a new stake in shares of First Solar in the second quarter valued at approximately $1,297,780,000. Hill City Capital LP bought a new stake in shares of First Solar during the second quarter valued at approximately $620,133,555. Norges Bank bought a new stake in shares of First Solar during the fourth quarter valued at approximately $392,040,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of First Solar by 7.0% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,535,836 shares of the solar cell manufacturer's stock worth $362,396,000 after buying an additional 100,694 shares during the period. Institutional investors and hedge funds own 92.08% of the company's stock.

First Solar Trading Up 2.3%

FSLR stock opened at $176.93 on Wednesday. First Solar has a twelve month low of $170.80 and a twelve month high of $320.95. The company has a market capitalization of $19.01 billion, a P/E ratio of 10.91, a PEG ratio of 0.46 and a beta of 1.74. The firm has a 50 day simple moving average of $209.46 and a 200-day simple moving average of $220.68.

First Solar (NASDAQ:FSLR - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The solar cell manufacturer reported $3.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.90 by $1.02. First Solar had a net margin of 32.47% and a return on equity of 18.02%. The firm had revenue of $1.06 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same period in the prior year, the company posted $3.18 earnings per share. The firm's quarterly revenue was down 3.4% on a year-over-year basis. On average, research analysts predict that First Solar will post 17.78 EPS for the current year.

More First Solar News

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

• Positive Sentiment: KeyBanc removed its bearish stance. The firm upgraded First Solar to Sector Weight from Underweight, arguing that the stock’s substantial year-to-date decline and current valuation limit further downside. The change helped support the shares and represents a less negative view of the company’s risk-reward profile. KeyBanc Just Upgraded First Solar Stock. Here's Why.
• Positive Sentiment: Valuation may provide a floor. First Solar trades at a relatively low earnings multiple compared with its historical valuation and is expected to generate strong full-year earnings. That inexpensive valuation was central to KeyBanc’s upgrade and could attract value-oriented investors if operating conditions stabilize. First Solar upgraded at KeyBanc as valuation limits downside
• Neutral Sentiment: Other coverage offers limited company-specific support. First Solar appeared in roundups of solar stocks and analyst research calls, while a Zacks article discussed using its Earnings ESP tool to identify potential earnings beats. These items do not provide a new forecast, estimate change or operational catalyst for FSLR. Top Solar Stocks To Keep An Eye On - September 27th
• Negative Sentiment: Pricing and demand concerns remain the main overhang. KeyBanc cited elevated U.S. inventory, slow project starts and potential medium-term pricing pressure. These factors could reduce margins or delay revenue growth, keeping investors skeptical despite First Solar’s strong recent earnings performance. First Solar Faces Pricing Pressure Amid High Inventory, Slow Project Starts, KeyBanc Says
• Negative Sentiment: A separate analysis downgraded the stock. The bearish view argues that the market still does not fully believe First Solar’s investment story, highlighting skepticism about whether projected growth and profitability can overcome industry and execution risks. First Solar: Why The Market Still Doesn't Believe The Story

First Solar Company Profile

First Solar, Inc is a solar technology and manufacturing company that designs and produces photovoltaic (PV) solar modules for utility-scale power projects. Unlike conventional crystalline-silicon panels, its modules use thin-film semiconductor technology based on cadmium telluride (CdTe), which the company says can provide advantages in energy yield, temperature performance and lifecycle sustainability.

The company's product portfolio includes its Series 6 and Series 7 thin-film solar modules, along with related services such as technical support, module recycling and end-of-life collection.

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