Canadian Solar (NASDAQ:CSIQ) Reaches New 12-Month Low - Should You Sell?

Key Points

• Canadian Solar shares hit a new 52-week low, trading as low as $8.82 and last changing hands near $8.91, well below their 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating, with three Buys, six Holds and four Sells. The consensus price target is $16.22, though several firms recently cut their targets, including JPMorgan to $8.
• The company reported a significant quarterly EPS miss of $1.40 versus the expected $0.18 loss, while revenue fell 28.7% year over year; analysts expect a full-year loss of $2.93 per share.

Shares of Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $8.82 and last traded at $8.9110, with a volume of 102,515 shares trading hands. The stock had previously closed at $9.23.

Analyst Upgrades and Downgrades

CSIQ has been the subject of a number of recent research reports. Roth Capital set a $15.00 price objective on Canadian Solar in a research report on Friday, August 28th. UBS Group decreased their price objective on shares of Canadian Solar from $25.00 to $16.00 and set a "buy" rating for the company in a research note on Wednesday, October 14th. Wells Fargo & Company reduced their target price on Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating for the company in a report on Monday, August 31st. Wall Street Zen lowered Canadian Solar from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 29th. Finally, JPMorgan Chase & Co. dropped their target price on Canadian Solar from $9.00 to $8.00 and set an "underweight" rating on the stock in a report on Monday, October 19th. Three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $16.22.

Canadian Solar Price Performance

The stock has a 50 day moving average of $12.10 and a two-hundred day moving average of $14.49. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.78 and a current ratio of 1.02. The firm has a market capitalization of $603.56 million, a P/E ratio of -2.32 and a beta of 1.53.

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

Institutional Inflows and Outflows

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

About Canadian Solar

Canadian Solar Inc is a global solar energy company that designs, manufactures and delivers renewable energy products and solutions. Founded in 2001 by Dr. Shawn Qu, the company is headquartered in Guelph, Ontario, Canada, and serves customers in markets across North America, Latin America, Europe, Africa, the Middle East, Australia and Asia.

Through its CSI Solar business, Canadian Solar provides photovoltaic solar modules, inverters, battery energy storage systems and other components used in residential, commercial, industrial and utility-scale projects.

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