First Solar (NASDAQ:FSLR) Shares Gap Up After Earnings Beat

Key Points

• First Solar's shares gapped up after reporting earnings of $3.18 per share, exceeding analysts' expectation of $2.68, and posting revenue of $1.10 billion, surpassing the consensus estimate of $1.03 billion.
• Despite strong earnings, several analysts downgraded or adjusted their target prices for First Solar, indicating mixed sentiments about future growth with average ratings leaning towards a "Moderate Buy."
• Insider trading activity revealed significant stock sales, with executives reducing their positions, while institutional investors own 92.08% of the company, reflecting strong institutional interest.

First Solar, Inc. (NASDAQ:FSLR - Get Free Report)'s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $174.73, but opened at $186.34. First Solar shares last traded at $181.99, with a volume of 1,114,269 shares trading hands.

The solar cell manufacturer reported $3.18 earnings per share for the quarter, beating analysts' consensus estimates of $2.68 by $0.50. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.03 billion. First Solar had a net margin of 29.72% and a return on equity of 16.32%. The company's revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.25 EPS.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on FSLR shares. Wall Street Zen downgraded shares of First Solar from a "hold" rating to a "sell" rating in a research report on Friday, May 2nd. BMO Capital Markets decreased their target price on shares of First Solar from $200.00 to $187.00 and set an "outperform" rating for the company in a research report on Wednesday, April 30th. Truist Financial reaffirmed a "buy" rating and set a $200.00 price objective (down previously from $245.00) on shares of First Solar in a research report on Thursday, May 1st. Bank of America raised their price objective on shares of First Solar from $185.00 to $201.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Finally, Susquehanna raised their price objective on shares of First Solar from $203.00 to $222.00 and gave the stock a "positive" rating in a research report on Friday. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, twenty-four have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $223.46.

Insider Buying and Selling

In related news, insider Patrick James Buehler sold 1,600 shares of the business's stock in a transaction that occurred on Thursday, July 3rd. The stock was sold at an average price of $180.00, for a total value of $288,000.00. Following the completion of the sale, the insider owned 4,398 shares in the company, valued at $791,640. The trade was a 26.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Markus Gloeckler sold 9,557 shares of the business's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $155.05, for a total value of $1,481,812.85. Following the completion of the sale, the chief technology officer owned 8,037 shares of the company's stock, valued at $1,246,136.85. The trade was a 54.32% decrease in their position. The disclosure for this sale can be found here. Insiders sold 15,976 shares of company stock worth $2,515,172 in the last quarter. 0.48% of the stock is owned by insiders.

Institutional Trading of First Solar

A number of hedge funds have recently bought and sold shares of FSLR. Garde Capital Inc. bought a new stake in First Solar in the first quarter valued at approximately $25,000. Wealth Preservation Advisors LLC bought a new stake in First Solar in the first quarter valued at approximately $25,000. TD Private Client Wealth LLC lifted its position in First Solar by 126.9% in the second quarter. TD Private Client Wealth LLC now owns 152 shares of the solar cell manufacturer's stock valued at $25,000 after purchasing an additional 85 shares during the last quarter. Harbor Investment Advisory LLC lifted its position in First Solar by 138.9% in the second quarter. Harbor Investment Advisory LLC now owns 172 shares of the solar cell manufacturer's stock valued at $28,000 after purchasing an additional 100 shares during the last quarter. Finally, Larson Financial Group LLC lifted its position in First Solar by 591.9% in the first quarter. Larson Financial Group LLC now owns 256 shares of the solar cell manufacturer's stock valued at $32,000 after purchasing an additional 219 shares during the last quarter. Institutional investors own 92.08% of the company's stock.

First Solar Stock Up 5.7%

The company has a quick ratio of 1.39, a current ratio of 1.93 and a debt-to-equity ratio of 0.04. The company has a 50-day simple moving average of $165.30 and a two-hundred day simple moving average of $153.41. The stock has a market cap of $19.80 billion, a P/E ratio of 15.73, a P/E/G ratio of 0.35 and a beta of 1.52.

About First Solar

First Solar, Inc, a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules.

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