Canadian Solar (NASDAQ:CSIQ) Reaches New 52-Week Low - Here's What Happened

Key Points

• Canadian Solar shares fell 7.9% to a new 52-week low of $10.34, significantly below their 50-day and 200-day moving averages.
• The company reported a sharp quarterly loss of $1.40 per share, missing the $0.18 consensus estimate, while revenue declined 28.7% year over year despite exceeding forecasts.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a $16.42 target price, with several firms recently downgrading the shares or cutting their price targets.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) hit a new 52-week low during trading on Wednesday. The company traded as low as $10.34 and last traded at $10.32, with a volume of 1,428,868 shares changing hands. The stock had previously closed at $11.21.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on CSIQ shares. Wall Street Zen downgraded Canadian Solar from a "sell" rating to a "strong sell" rating in a report on Saturday, August 29th. Wells Fargo & Company reduced their target price on shares of Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating for the company in a research report on Monday, August 31st. Weiss Ratings downgraded shares of Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, August 27th. Mizuho lowered their price target on shares of Canadian Solar from $18.00 to $17.00 and set a "neutral" rating on the stock in a research report on Friday, August 28th. Finally, Glj Research reaffirmed a "sell" rating and set a $5.58 price target on shares of Canadian Solar in a research report on Thursday, August 27th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $16.42.

Canadian Solar Trading Down 7.9%

The company has a quick ratio of 0.78, a current ratio of 1.02 and a debt-to-equity ratio of 0.95. The firm has a market capitalization of $701.41 million, a P/E ratio of -2.69 and a beta of 1.53. The firm has a 50 day moving average of $13.02 and a 200-day moving average of $14.69.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last issued its quarterly 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 company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.17 billion. Canadian Solar had a negative return on equity of 5.57% and a negative net margin of 3.73%. The company's quarterly revenue was down 28.7% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.53) EPS. On average, equities research 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 hedge funds have recently modified their holdings of CSIQ. Mraz Amerine & Associates Inc. acquired a new stake in Canadian Solar during the second quarter worth about $188,000. Susquehanna Fundamental Investments LLC bought a new position in Canadian Solar in the 2nd quarter valued at about $166,000. Hsbc Holdings PLC raised its position in shares of Canadian Solar by 170.5% in the 2nd quarter. Hsbc Holdings PLC now owns 325,847 shares of the solar energy provider's stock valued at $5,220,000 after buying an additional 205,397 shares in the last quarter. Wellington Management Group LLP acquired a new position in shares of Canadian Solar in the 2nd quarter valued at approximately $1,018,259,000. Finally, Kingsview Wealth Management LLC bought a new stake in shares of Canadian Solar during the 2nd quarter worth approximately $357,000. Institutional investors own 52.36% of the company's stock.

About Canadian Solar

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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