Canadian Solar (NASDAQ:CSIQ) Shares Gap Up - Still a Buy?

Key Points

• Canadian Solar shares jumped 9.8%, opening at $11.01 after a prior close of $10.10 and last trading at $11.355.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average price target of $15.84, with recent target cuts and downgrades.
• The company reported a quarterly loss of $1.40 per share, far worse than the $0.18 loss analysts expected; revenue of $1.21 billion beat estimates but fell 28.7% year over year.

Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report)'s share price gapped up before the market opened on Wednesday. The stock had previously closed at $10.10, but opened at $11.01. Canadian Solar shares last traded at $11.3550, with a volume of 1,806,432 shares traded.

Analyst Ratings Changes

Several equities analysts have weighed in on CSIQ shares. Citigroup decreased their target price 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. Weiss Ratings downgraded shares of Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 27th. Wells Fargo & Company cut their price target on shares of Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating for the company in a report on Monday, August 31st. UBS Group reduced their price target on shares of Canadian Solar from $25.00 to $16.00 and set a "buy" rating on the stock in a research report on Wednesday, October 14th. Finally, Zacks Research lowered Canadian Solar from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 15th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Canadian Solar presently has a consensus rating of "Reduce" and a consensus target price of $15.84.

Canadian Solar Stock Up 9.8%

The business's 50 day moving average price is $11.38 and its 200-day moving average price is $15.32. 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 $753.28 million, a PE ratio of -2.89 and a beta of 1.50.

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 for the quarter, missing the consensus estimate of ($0.18) by ($1.22). Canadian Solar had a negative net margin of 3.73% and a negative return on equity of 5.57%. The company had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the business posted ($0.53) EPS. The firm's revenue for the quarter was down 28.7% on a year-over-year basis. As a group, equities research analysts forecast that Canadian Solar Inc. will post -2.93 earnings per share for the current year.

Hedge Funds Weigh In On Canadian Solar

A number of hedge funds and other institutional investors have recently bought and sold shares of CSIQ. Caisse de depot et placement du Quebec purchased a new position in Canadian Solar in the second quarter valued at $2,262,141,000. Wellington Management Group LLP purchased a new position in shares of Canadian Solar in the 2nd quarter valued at about $1,018,259,000. Deutsche Bank AG acquired a new stake in shares of Canadian Solar during the 2nd quarter worth about $722,850,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Canadian Solar during the 2nd quarter worth about $676,361,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in Canadian Solar during the second quarter worth approximately $631,683,000. 52.36% of the stock is currently owned by hedge funds and other institutional investors.

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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