Traders Purchase Large Volume of Put Options on First Solar (NASDAQ:FSLR)

Key Points

• Put-option activity increased sharply: Traders bought 38,523 put options on First Solar, 45% above the average volume, signaling heightened hedging or bearish interest.
• Analyst sentiment remains moderately bullish but mixed: First Solar has an average “Moderate Buy” rating and a $265.73 target price, although Deutsche Bank and Citigroup downgraded the stock to “Hold.”
• The stock is under pressure despite strong earnings: Shares fell to $168.33, near their one-year low, even after the company beat quarterly EPS estimates; insiders have also sold $3.76 million in stock over the past three months.

First Solar, Inc. (NASDAQ:FSLR - Get Free Report) was the target of some unusual options trading on Monday. Stock traders acquired 38,523 put options on the stock. This is an increase of 45% compared to the average volume of 26,537 put options.

Analysts Set New Price Targets

A number of research analysts have weighed in on FSLR shares. Roth Capital reaffirmed a "buy" rating and issued a $300.00 price objective on shares of First Solar in a research note on Friday, July 24th. Evercore restated a "positive" rating and issued a $218.00 target price on shares of First Solar in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft cut shares of First Solar from a "buy" rating to a "hold" rating in a research report on Thursday, August 27th. Raymond James Financial started coverage on First Solar in a research note on Thursday, August 27th. They set a "market perform" rating for the company. Finally, Citigroup lowered First Solar from a "buy" rating to a "hold" rating in a report on Thursday, August 27th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $265.73.

Insiders Place Their Bets

In other news, EVP Samantha L. Sloan sold 127 shares of the business's stock in a transaction dated 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. The trade was a 5.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael Koralewski sold 7,000 shares of the business's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $221.51, for a total transaction of $1,550,570.00. Following the completion of the sale, the insider directly owned 7,642 shares in the company, valued at approximately $1,692,779.42. This represents a 47.81% 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. In the last three months, insiders have sold 16,681 shares of company stock worth $3,756,286. Insiders own 0.39% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Pictet Asset Management Holding SA increased its holdings in First Solar by 29.3% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,138,473 shares of the solar cell manufacturer's stock worth $224,540,000 after buying an additional 258,204 shares in the last quarter. Rakuten Investment Management Inc. bought a new position in First Solar during the 2nd quarter valued at about $4,019,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of First Solar by 7.0% during the 2nd 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 valued at $362,396,000 after acquiring an additional 100,694 shares during the last quarter. Jupiter Topco LLC purchased a new stake in shares of First Solar during the 2nd quarter valued at about $6,121,000. Finally, Handelsbanken Fonder AB boosted its holdings in shares of First Solar by 15.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 683,112 shares of the solar cell manufacturer's stock valued at $161,187,000 after acquiring an additional 89,214 shares during the last quarter. Hedge funds and other institutional investors own 92.08% of the company's stock.

First Solar Price Performance

NASDAQ FSLR traded down $3.66 during trading on Monday, reaching $168.33. The company's stock had a trading volume of 1,510,006 shares, compared to its average volume of 2,347,158. The firm has a fifty day moving average of $192.86 and a 200 day moving average of $218.37. First Solar has a one year low of $165.86 and a one year high of $320.95. The stock has a market capitalization of $18.09 billion, a PE ratio of 10.38, a P/E/G ratio of 0.47 and a beta of 1.80.

First Solar (NASDAQ:FSLR - Get Free Report) last released its earnings results on Thursday, July 30th. The solar cell manufacturer reported $3.92 EPS for the quarter, beating analysts' consensus estimates of $2.90 by $1.02. First Solar had a return on equity of 18.02% and a net margin of 32.47%. The business had revenue of $1.06 billion for the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter in the prior year, the firm earned $3.18 earnings per share. The firm's revenue was down 3.4% on a year-over-year basis. Research analysts expect that First Solar will post 17.63 earnings per share for the current fiscal year.

About First Solar

First Solar, Inc is a vertically integrated solar technology and manufacturing company that designs, manufactures and sells photovoltaic (PV) solar modules. Its modules use advanced thin-film semiconductor technology based on cadmium telluride (CdTe), rather than the crystalline-silicon technology used by most solar manufacturers. The company serves utility-scale solar developers, commercial and industrial customers, and other large-scale energy users.

Founded in 1999 and headquartered in Tempe, Arizona, First Solar operates research and development, manufacturing and recycling facilities in the United States and internationally.

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