Canadian Solar (NASDAQ:CSIQ) Shares Down 5.7% - Here's Why

Key Points

• Canadian Solar shares fell 5.7% to $11.54 in mid-day trading, with volume 59% below the average session level.
• The company reported a significant quarterly EPS miss, posting a loss of $1.40 per share versus the expected loss of $0.18. Revenue reached $1.21 billion but declined 28.7% year over year.
• Analyst sentiment remains cautious: Canadian Solar has a consensus rating of “Reduce”, based on three Buy, seven Hold and four Sell ratings, with an average price target of $17.75.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) shares dropped 5.7% during mid-day trading on Wednesday . The stock traded as low as $11.64 and last traded at $11.54. Approximately 1,088,087 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 2,676,776 shares. The stock had previously closed at $12.24.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Roth Capital set a $15.00 target price on shares of Canadian Solar in a research report on Friday, August 28th. Mizuho lowered their price target on Canadian Solar from $18.00 to $17.00 and set a "neutral" rating for the company in a research report on Friday, August 28th. Citigroup cut their price target on shares of Canadian Solar from $18.00 to $15.00 and set a "neutral" rating on the stock in a report on Thursday, August 27th. Glj Research reaffirmed a "sell" rating and issued a $5.58 target price on shares of Canadian Solar in a report on Thursday, August 27th. Finally, Weiss Ratings lowered shares of Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, August 27th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $17.75.

Canadian Solar Stock Performance

The company has a current ratio of 1.02, a quick ratio of 0.78 and a debt-to-equity ratio of 0.95. The firm's fifty day moving average is $14.45 and its 200 day moving average is $15.45. The company has a market cap of $773.72 million, a PE ratio of -3.01 and a beta of 1.51.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last posted its quarterly earnings results 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). The company had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.17 billion. Canadian Solar had a negative return on equity of 5.57% and a negative net margin of 3.73%.The firm's revenue was down 28.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.53) EPS. As a group, research analysts predict that Canadian Solar Inc. will post -2.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Global Retirement Partners LLC acquired a new position in shares of Canadian Solar in the 2nd quarter valued at $96,000. Jones Financial Companies Lllp bought a new stake in Canadian Solar during the 2nd quarter worth approximately $100,000. Danske Bank A S bought a new position in shares of Canadian Solar in the second quarter valued at about $100,000. EFG International AG acquired a new position in shares of Canadian Solar during the second quarter worth approximately $161,000. Finally, Kelleher Financial Advisors acquired a new stake in shares of Canadian Solar in the 2nd quarter valued at $186,000. Hedge funds and other institutional investors own 52.36% of the company's stock.

About Canadian Solar

Canadian Solar Inc NASDAQ: CSIQ is a solar technology and renewable energy company founded in 2001 by Shawn Qu and headquartered in Guelph, Ontario. The company designs and manufactures solar photovoltaic modules and provides related products, including battery energy storage systems, inverters and other equipment used in commercial, industrial and utility-scale renewable energy installations.

Through its CSI Solar business, Canadian Solar supplies solar modules and delivers integrated energy solutions, including engineering, procurement and construction services.

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