Canadian Solar (NASDAQ:CSIQ) Shares Up 6% - What's Next?

Key Points

• Canadian Solar shares rose 6% to about $11.05 in midday trading, though volume was roughly 81% below the average daily level.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with three Buy, six Hold and four Sell ratings; the consensus price target is $17.75.
• The company reported a steep quarterly EPS loss of $1.40 versus expectations of a $0.18 loss, while revenue fell 28.7% year over year to $1.21 billion despite exceeding revenue estimates.

Shares of Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) shot up 6% during mid-day trading on Tuesday. The company traded as high as $10.83 and last traded at $11.0450. Approximately 504,212 shares traded hands during trading, a decline of 81% from the average daily volume of 2,641,416 shares. The stock had previously closed at $10.42.

Analyst Ratings Changes

CSIQ has been the subject of a number of recent analyst reports. Mizuho lowered their price objective 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. Glj Research reaffirmed a "sell" rating and set a $5.58 target price on shares of Canadian Solar in a research report on Thursday, August 27th. Wall Street Zen cut Canadian Solar from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 29th. Wells Fargo & Company lowered their price target on Canadian Solar from $18.00 to $17.00 and set an "equal weight" rating for the company in a report on Monday, August 31st. Finally, Weiss Ratings lowered Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, August 27th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $17.75.

Canadian Solar Stock Performance

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 stock has a market capitalization of $759.05 million, a PE ratio of -2.91 and a beta of 1.51. The firm has a 50 day moving average price of $13.77 and a 200-day moving average price of $15.07.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last issued its earnings results on Thursday, August 27th. The solar energy provider reported ($1.40) EPS for the quarter, missing analysts' consensus estimates 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 firm had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same quarter in the prior year, the company earned ($0.53) EPS. Canadian Solar's quarterly revenue was down 28.7% on a year-over-year basis. Research analysts expect that Canadian Solar Inc. will post -2.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

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

Canadian Solar Company Profile

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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