Canadian Solar (NASDAQ:CSIQ) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• Canadian Solar shares hit a new 52-week low, falling to $9.30 after JPMorgan cut its price target from $9.00 to $8.00 and maintained an underweight rating.
• Analyst sentiment has broadly deteriorated: MarketBeat reports a consensus “Reduce” rating, with three Buy, six Hold and four Sell recommendations, and an average target price of $16.22.
• The company reported a sharp quarterly EPS miss of $1.40 versus the expected $0.18 loss, while revenue declined 28.7% year over year to $1.21 billion; institutional investors own 52.36% of the stock.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s stock price hit a new 52-week low on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $9.00 to $8.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Canadian Solar traded as low as $9.30 and last traded at $9.57, with a volume of 1,913,503 shares changing hands. The stock had previously closed at $9.81.

Other analysts also recently issued reports about the company. Glj Research reiterated a "sell" rating and set a $5.58 target price on shares of Canadian Solar in a research note on Thursday, August 27th. Wall Street Zen cut Canadian Solar from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 29th. Wells Fargo & Company decreased their price target on Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating for the company in a research note on Monday, August 31st. Zacks Research downgraded Canadian Solar from a "hold" rating to a "strong sell" rating in a report on Thursday, October 15th. Finally, Weiss Ratings downgraded Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 27th. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Canadian Solar presently has a consensus rating of "Reduce" and an average target price of $16.22.

Institutional Investors Weigh In On Canadian Solar

A number of large investors have recently made changes to their positions in the company. Counterpoint Mutual Funds LLC purchased a new stake in shares of Canadian Solar in the 3rd quarter worth $527,000. TD Waterhouse Canada Inc. raised its holdings in Canadian Solar by 139.2% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 23,200 shares of the solar energy provider's stock worth $262,000 after purchasing an additional 13,500 shares during the period. Mraz Amerine & Associates Inc. bought a new position in Canadian Solar in the 2nd quarter worth $188,000. Susquehanna Fundamental Investments LLC purchased a new position in Canadian Solar during the second quarter valued at $166,000. Finally, Hsbc Holdings PLC lifted its position in Canadian Solar by 170.5% during the second quarter. Hsbc Holdings PLC now owns 325,847 shares of the solar energy provider's stock valued at $5,220,000 after purchasing an additional 205,397 shares in the last quarter. 52.36% of the stock is currently owned by institutional investors.

Canadian Solar Stock Down 2.4%

The company has a 50-day moving average of $12.58 and a two-hundred day moving average of $14.60. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.02 and a quick ratio of 0.78. The company has a market capitalization of $649.80 million, a PE ratio of -2.49 and a beta of 1.53.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The solar energy provider reported ($1.40) EPS for the quarter, missing the consensus estimate of ($0.18) by ($1.22). Canadian Solar had a negative return on equity of 5.57% and a negative net margin of 3.73%. The company had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same period last year, the business earned ($0.53) EPS. The firm's quarterly revenue was down 28.7% compared to the same quarter last year. Sell-side analysts anticipate that Canadian Solar Inc. will post -2.93 earnings per share for the current fiscal year.

Canadian Solar Company Profile

Canadian Solar Inc NASDAQ: CSIQ is a global renewable-energy company that designs, manufactures and sells solar photovoltaic modules and system solutions. Its product portfolio includes solar modules, inverters, battery-storage systems and other equipment used in residential, commercial, industrial and utility-scale renewable-energy installations.

The company also develops, builds and operates solar-power and energy-storage projects through its Recurrent Energy business. These activities include project development, engineering, procurement and construction, as well as the ownership and sale of electricity-generating assets.

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