First Solar (NASDAQ:FSLR) Stock Breaks Above 50 Day Moving Average - Here's Why

Key Points

• First Solar shares moved above their 50-day moving average of $187.38, reaching an intraday high of $214.87 before last trading at $194.51.
• Optimism around potential renewable-energy support after the election, existing tariffs and a William Blair upgrade to “outperform” helped sentiment; call-option buying was also unusually high. The effect of any policy changes on earnings remains uncertain.
• Analyst views are mixed, though the consensus rating is “Moderate Buy” with a $257.38 target price. First Solar beat quarterly EPS estimates ($5.30 versus $4.67), but revenue missed estimates and fell 22.8% year over year.

First Solar, Inc. (NASDAQ:FSLR - Get Free Report)'s share price crossed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $187.38 and traded as high as $214.87. First Solar shares last traded at $194.51, with a volume of 8,773,901 shares trading hands.

First Solar News Summary

Here are the key news stories impacting First Solar this week:

• Positive Sentiment: William Blair upgraded First Solar from “market perform” to “outperform,” a more favorable view that may support investor sentiment. William Blair stock recommendations
• Positive Sentiment: Democrats’ control of both chambers of Congress fueled hopes for renewed federal support for renewable energy and domestic solar manufacturing. First Solar was among the solar stocks that rallied following the election. The company also reportedly benefits from existing tariffs that strengthen its competitive position. First Solar and clean-energy stocks after the election First Solar, tariffs and the Democratic sweep
• Positive Sentiment: Options activity was unusually high, with investors buying 67,156 call options—about 128% above the average volume cited. This suggests increased bullish positioning, though options activity does not guarantee future performance.
• Neutral Sentiment: The election may shift policy expectations, but any impact on First Solar’s earnings depends on what legislation is enacted and when. Stocks to watch after Democratic gains
• Negative Sentiment: Barclays and Guggenheim cut their price targets, signaling caution from some analysts and potentially limiting the effect of the positive news. Barclays price-target cut Guggenheim price-target cut

Analyst Ratings Changes

FSLR has been the topic of several research analyst reports. UBS Group reaffirmed a "buy" rating on shares of First Solar in a research note on Friday, October 30th. Citigroup lowered their price objective on First Solar from $297.00 to $283.00 and set a "buy" rating for the company in a research report on Friday, October 30th. Glj Research cut shares of First Solar from a "buy" rating to a "hold" rating and set a $161.00 target price for the company. in a research report on Friday, October 30th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $199.00 price target on shares of First Solar in a research note on Friday, October 16th. Finally, Susquehanna reaffirmed a "positive" rating and set a $246.00 price objective on shares of First Solar in a research note on Friday, October 30th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $257.38.

First Solar Stock Performance

The firm's 50-day simple moving average is $187.38 and its 200 day simple moving average is $215.40. The stock has a market capitalization of $20.91 billion, a P/E ratio of 11.26, a PEG ratio of 0.50 and a beta of 1.73.

First Solar (NASDAQ:FSLR - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The solar cell manufacturer reported $5.30 earnings per share for the quarter, topping the consensus estimate of $4.67 by $0.63. First Solar had a return on equity of 18.33% and a net margin of 37.12%. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the previous year, the firm earned $4.24 EPS. The business's quarterly revenue was down 22.8% on a year-over-year basis. As a group, research analysts expect that First Solar, Inc. will post 17.66 earnings per share for the current fiscal year.

Insider Buying and Selling

In other First Solar news, General Counsel Jason Dymbort sold 3,700 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $249.38, for a total transaction of $922,706.00. Following the transaction, the general counsel owned 5,624 shares of the company's stock, valued at $1,402,513.12. The trade was a 39.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Markus Gloeckler sold 800 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $174.00, for a total value of $139,200.00. Following the transaction, the chief technology officer directly owned 5,042 shares in the company, valued at $877,308. The trade was a 13.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 5,427 shares of company stock worth $1,250,221. Company insiders own 0.39% of the company's stock.

Institutional Investors Weigh In On First Solar

Institutional investors have recently modified their holdings of the business. Fiduciary Financial Group LLC boosted its holdings in shares of First Solar by 2.3% in the 2nd quarter. Fiduciary Financial Group LLC now owns 2,026 shares of the solar cell manufacturer's stock valued at $478,000 after purchasing an additional 45 shares in the last quarter. Hilltop Holdings Inc. raised its holdings in First Solar by 3.5% in the 1st quarter. Hilltop Holdings Inc. now owns 1,608 shares of the solar cell manufacturer's stock valued at $317,000 after buying an additional 54 shares during the last quarter. TD Waterhouse Canada Inc. lifted its holdings in shares of First Solar by 0.3% during the second quarter. TD Waterhouse Canada Inc. now owns 17,102 shares of the solar cell manufacturer's stock worth $3,973,000 after purchasing an additional 55 shares during the period. Cox Capital Mgt LLC grew its position in shares of First Solar by 0.4% in the 3rd quarter. Cox Capital Mgt LLC now owns 13,989 shares of the solar cell manufacturer's stock valued at $2,450,000 after buying an additional 58 shares during the last quarter. Finally, Contravisory Investment Management Inc. boosted its holdings in First Solar by 1.5% in the third quarter. Contravisory Investment Management Inc. now owns 3,907 shares of the solar cell manufacturer's stock valued at $684,000 after acquiring an additional 59 shares during the last quarter. Institutional investors own 92.08% of the company's stock.

About First Solar

First Solar, Inc is a vertically integrated solar technology and manufacturing company that designs, manufactures and sells photovoltaic (PV) solar modules. Its modules use advanced thin-film semiconductor technology based on cadmium telluride (CdTe), rather than the crystalline-silicon technology used by most solar manufacturers. The company serves utility-scale solar developers, commercial and industrial customers, and other large-scale energy users.

Founded in 1999 and headquartered in Tempe, Arizona, First Solar operates research and development, manufacturing and recycling facilities in the United States and internationally.

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