Canadian Solar (NASDAQ:CSIQ) Stock Price Down 3.8% - Here's Why

Key Points

• Canadian Solar shares fell 3.8% to about $9.44, with trading volume down 93% from the average daily level.
• Analyst sentiment is mixed but leans negative: the stock has a consensus “Reduce” rating and a $16.42 target price, with recent downgrades from Weiss Ratings and Zacks Research.
• The company reported a significant quarterly EPS loss of $1.40 versus expectations for a $0.18 loss, while revenue declined 28.7% year over year despite exceeding estimates.

Shares of Canadian Solar Inc. (NASDAQ:CSIQ - Get Free Report) dropped 3.8% during trading on Monday. The company traded as low as $9.42 and last traded at $9.4350. 190,591 shares traded hands during trading, a decline of 93% from the average daily volume of 2,575,519 shares. The stock had previously closed at $9.81.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Weiss Ratings downgraded shares of Canadian Solar from a "sell (d+)" rating to a "sell (d)" rating in a report on Thursday, August 27th. UBS Group cut their target price on shares of Canadian Solar from $25.00 to $16.00 and set a "buy" rating for the company in a research note on Wednesday. Zacks Research downgraded shares of Canadian Solar from a "hold" rating to a "strong sell" rating in a report on Thursday. Roth Capital set a $15.00 target price on Canadian Solar in a research report on Friday, August 28th. Finally, Mizuho decreased their target price on Canadian Solar from $18.00 to $17.00 and set a "neutral" rating on the stock in a research report on Friday, August 28th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $16.42.

Canadian Solar Stock Down 3.0%

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 stock has a market cap of $646.14 million, a P/E ratio of -2.48 and a beta of 1.53. The stock's fifty day simple moving average is $12.70 and its 200-day simple moving average is $14.63.

Canadian Solar (NASDAQ:CSIQ - Get Free Report) last announced its earnings results on Thursday, August 27th. The solar energy provider reported ($1.40) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.18) by ($1.22). Canadian Solar had a negative return on equity of 5.57% and a negative net margin of 3.73%. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the previous year, the company earned ($0.53) EPS. The business's revenue for the quarter was down 28.7% on a year-over-year basis. As a group, research analysts forecast that Canadian Solar Inc. will post -2.93 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Canadian Solar

Several institutional investors and hedge funds have recently bought and sold shares of the company. The Manufacturers Life Insurance Company bought a new position in shares of Canadian Solar in the 2nd quarter valued at $631,683,000. Deutsche Bank AG acquired a new position in shares of Canadian Solar during the 2nd quarter worth $722,850,000. Bank of America Corp DE bought a new stake in shares of Canadian Solar during the 2nd quarter worth $151,417,000. Hsbc Holdings PLC lifted its position in shares of Canadian Solar by 170.5% during the 2nd quarter. Hsbc Holdings PLC now owns 325,847 shares of the solar energy provider's stock worth $5,220,000 after buying an additional 205,397 shares during the last quarter. Finally, BlackRock Inc. bought a new stake in shares of Canadian Solar during the 2nd quarter worth $59,238,000. Institutional investors own 52.36% of the company's stock.

Canadian Solar Company Profile

Canadian Solar Inc NASDAQ: CSIQ is a global renewable-energy company that designs, manufactures and sells solar photovoltaic modules and system solutions. Its product portfolio includes solar modules, inverters, battery-storage systems and other equipment used in residential, commercial, industrial and utility-scale renewable-energy installations.

The company also develops, builds and operates solar-power and energy-storage projects through its Recurrent Energy business. These activities include project development, engineering, procurement and construction, as well as the ownership and sale of electricity-generating assets.

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