Canadian Solar (NASDAQ:CSIQ) Shares Down 6.4% - Here's What Happened

Key Points

• Canadian Solar shares fell 6.4% in Monday midday trading, dropping from a previous close of $11.12 to about $10.41; trading volume was 91% below its average.
• Analyst views were mixed but leaned negative: the stock has a consensus “Reduce” rating and a $15.84 average price target, while several firms recently cut their price targets or ratings.
• The company’s latest quarter missed earnings estimates, reporting a $1.40 loss per share versus a forecast loss of $0.18. Revenue of $1.21 billion topped estimates but declined 28.7% year over year.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s stock price was down 6.4% during mid-day trading on Monday. The company traded as low as $10.33 and last traded at $10.4110. 229,313 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 2,545,350 shares. The stock had previously closed at $11.12.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CSIQ. 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 price target on Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Monday, August 31st. UBS Group decreased their price objective on Canadian Solar from $25.00 to $16.00 and set a "buy" rating for the company in a research note on Wednesday, October 14th. JPMorgan Chase & Co. lowered their price objective on Canadian Solar from $9.00 to $8.00 and set an "underweight" rating for the company in a research report on Monday, October 19th. Finally, Roth Capital set a $15.00 target price on shares of Canadian Solar in a research note on Friday, August 28th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Canadian Solar currently has an average rating of "Reduce" and a consensus price target of $15.84.

Canadian Solar Trading Down 5.8%

The firm has a market cap of $711.56 million, a PE ratio of -2.74 and a beta of 1.50. 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 business has a fifty day moving average price of $11.18 and a 200 day moving average price of $15.16.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last issued its earnings results on Thursday, August 27th. The solar energy provider reported ($1.40) earnings per share for the quarter, missing the consensus estimate of ($0.18) by ($1.22). The business 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%. Canadian Solar's revenue was down 28.7% on a year-over-year basis. During the same period last year, the business posted ($0.53) EPS. Analysts forecast that Canadian Solar Inc. will post -2.93 EPS for the current year.

Institutional Trading of Canadian Solar

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Caisse de depot et placement du Quebec acquired a new stake in Canadian Solar during the 2nd quarter worth $2,262,141,000. Wellington Management Group LLP purchased a new position in Canadian Solar during the 2nd quarter worth $1,018,259,000. Deutsche Bank AG purchased a new position in Canadian Solar during the 2nd quarter worth $722,850,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Canadian Solar during the 2nd quarter worth $676,361,000. Finally, The Manufacturers Life Insurance Company acquired a new position in Canadian Solar in the second quarter valued at $631,683,000. Institutional investors and hedge funds own 52.36% of the company's stock.

Canadian Solar Company Profile

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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