Canadian Solar (NASDAQ:CSIQ) Trading Down 19.2% – Here’s Why

Canadian Solar Inc. (NASDAQ:CSIQ)’s stock price traded down 19.2% during trading on Thursday . The stock traded as low as $16.57 and last traded at $16.2060. 2,401,589 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 2,900,493 shares. The stock had previously closed at $20.05.

Key Stories Impacting Canadian Solar

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

• Positive Sentiment: Canadian Solar reported a smaller-than-expected first-quarter loss of $0.71 per share versus the $1.06 estimate, and revenue of $1.08 billion topped Wall Street’s $950.4 million forecast. The company also said solar module shipments reached 2.5 GW, above guidance of 2.2 GW to 2.4 GW. Article Title
• Positive Sentiment: The company’s Q1 update and earnings call highlighted better-than-expected operational execution, which helped support a rebound in the shares earlier in the session. Article Title
• Neutral Sentiment: Canadian Solar also announced a CEO appointment alongside the earnings release, a governance change that may be relevant for longer-term strategy but is not the main driver of near-term trading. Article Title
• Negative Sentiment: Investor enthusiasm was tempered by disappointing second-quarter revenue guidance of $1.0 billion to $1.2 billion, well below the roughly $1.6 billion consensus estimate, raising concerns that growth is slowing after the strong Q1 beat. Article Title
• Negative Sentiment: Although Q1 losses improved year over year, revenue was still down 9.9% from a year earlier, underscoring margin and demand pressure in the solar business. Article Title

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Wells Fargo & Company lowered their price target on shares of Canadian Solar from $23.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 8th. Mizuho lowered their price target on shares of Canadian Solar from $19.00 to $15.00 and set a “neutral” rating on the stock in a research report on Monday, March 23rd. Roth Mkm decreased their target price on shares of Canadian Solar from $30.00 to $15.00 and set a “neutral” rating on the stock in a report on Monday, March 23rd. Wall Street Zen lowered shares of Canadian Solar from a “hold” rating to a “strong sell” rating in a report on Monday, April 20th. Finally, Freedom Capital raised shares of Canadian Solar from a “hold” rating to a “strong-buy” rating in a report on Tuesday, March 24th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, five have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $18.36.

Canadian Solar Trading Down 10.2%

The firm’s 50-day moving average is $15.16 and its 200 day moving average is $20.04. The company has a current ratio of 1.02, a quick ratio of 0.83 and a debt-to-equity ratio of 0.97. The firm has a market capitalization of $1.22 billion, a price-to-earnings ratio of -7.18 and a beta of 1.44.

Canadian Solar (NASDAQ:CSIQ) last posted its earnings results on Friday, May 15th. The solar energy provider reported ($0.71) EPS for the quarter, topping the consensus estimate of ($1.06) by $0.35. Canadian Solar had a negative net margin of 1.86% and a negative return on equity of 4.95%. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $950.43 million. During the same period last year, the company earned ($1.07) EPS. The firm’s revenue was down 9.9% compared to the same quarter last year. On average, equities analysts predict that Canadian Solar Inc. will post -2.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. China Universal Asset Management Co. Ltd. acquired a new position in shares of Canadian Solar in the 4th quarter worth approximately $48,000. Quarry LP acquired a new position in shares of Canadian Solar during the 4th quarter valued at $54,000. Taikang Asset Management Hong Kong Co Ltd acquired a new position in shares of Canadian Solar during the 4th quarter valued at $69,000. Raymond James Financial Inc. acquired a new position in shares of Canadian Solar during the 2nd quarter valued at $33,000. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Canadian Solar by 335.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 3,198 shares of the solar energy provider’s stock valued at $42,000 after acquiring an additional 2,463 shares during the period. Institutional investors and hedge funds own 52.36% of the company’s stock.

Canadian Solar Company Profile

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.