Canadian Solar (NASDAQ:CSIQ) Shares Gap Down Following Weak Earnings

Key Points

• Canadian Solar shares fell after a weak earnings report, opening at $13.41 versus a prior close of $13.87. The company reported a quarterly loss of $1.40 per share, missing estimates by $1.22, while revenue reached $1.21 billion but declined 28.7% year over year.
• Analyst sentiment remains cautious: three analysts rate the stock Buy, seven Hold and four Sell, producing a consensus “Reduce” rating and an average price target of $18.11.
• Institutional investors own 52.36% of Canadian Solar, with several hedge funds increasing their positions recently. The company has a market capitalization of about $924 million and trades below both its 50-day and 200-day moving averages.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $13.87, but opened at $13.41. Canadian Solar shares last traded at $13.6010, with a volume of 651,464 shares traded.

The solar energy provider reported ($1.40) earnings per share for the quarter, missing the consensus estimate of ($0.18) by ($1.22). The firm had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.17 billion. Canadian Solar had a negative return on equity of 4.20% and a negative net margin of 1.87%.The business's revenue was down 28.7% on a year-over-year basis. During the same period last year, the business earned ($0.53) earnings per share.

Analyst Upgrades and Downgrades

CSIQ has been the subject of several research analyst reports. Freedom Capital downgraded Canadian Solar from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Citigroup raised shares of Canadian Solar from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $11.00 to $18.00 in a research report on Wednesday, July 22nd. Mizuho raised their price target on Canadian Solar from $15.00 to $18.00 and gave the company a "neutral" rating in a research note on Monday, June 15th. Wall Street Zen upgraded shares of Canadian Solar from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 23rd. Finally, Glj Research reiterated a "sell" rating and set a $5.58 price objective on shares of Canadian Solar in a research report on Thursday. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, Canadian Solar has a consensus rating of "Reduce" and an average price target of $18.11.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Goldman Sachs Group Inc. grew its stake in shares of Canadian Solar by 20.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 548,853 shares of the solar energy provider's stock worth $4,748,000 after acquiring an additional 92,002 shares during the period. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its position in Canadian Solar by 141.9% in the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 9,100 shares of the solar energy provider's stock worth $100,000 after buying an additional 5,338 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Canadian Solar by 20.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 842,703 shares of the solar energy provider's stock valued at $9,539,000 after buying an additional 145,867 shares during the period. Raymond James Financial Inc. purchased a new position in shares of Canadian Solar in the second quarter worth $33,000. Finally, Balyasny Asset Management L.P. bought a new position in Canadian Solar during the 2nd quarter valued at approximately $790,000. Hedge funds and other institutional investors own 52.36% of the company's stock.

Canadian Solar Stock Performance

The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.81 and a current ratio of 1.06. The stock has a market capitalization of $923.58 million, a PE ratio of -5.41 and a beta of 1.52. The company's 50-day moving average price is $15.06 and its 200 day moving average price is $16.15.

About Canadian Solar

Canadian Solar Inc NASDAQ: CSIQ is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world's largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.

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