First Solar (NASDAQ:FSLR) Shares Gap Up – Should You Buy?

Shares of First Solar, Inc. (NASDAQ:FSLR) gapped up before the market opened on Wednesday. The stock had previously closed at $185.90, but opened at $206.00. First Solar shares last traded at $207.0330, with a volume of 2,792,272 shares traded.

Trending Headlines about First Solar

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

• Positive Sentiment: William Blair raised First Solar to Outperform from Market Perform, citing potential support for utility-scale solar projects following Democratic gains. The firm cautioned that any boost to new bookings may take time to materialize. First Solar raised at William Blair as Democrat Congress seen boosting support
• Positive Sentiment: First Solar opened a manufacturing facility in Gaffney, South Carolina, expanding its U.S. production footprint and adding regional jobs. Its domestic manufacturing focus could benefit from supportive clean-energy policies. First Solar opens South Carolina plant with new jobs in focus
• Positive Sentiment: The company announced a $500 million share repurchase program, which may support shareholder returns. Democratic Sweep Could Be A Big Deal For First Solar Stock
• Neutral Sentiment: The election-driven enthusiasm is based on expectations for future policy and project demand, rather than an immediate change in earnings; analysts expect new bookings could take time. First Solar Could Be a Winner From the Blue Wave
• Negative Sentiment: First Solar’s third-quarter EPS beat estimates, but revenue missed expectations. Updated guidance also points to lower full-year net sales and module shipments, weighing on the outlook despite the buyback and policy tailwinds. Democratic Sweep Could Be A Big Deal For First Solar Stock

Wall Street Analyst Weigh In

FSLR has been the topic of several research analyst reports. Mizuho set a $328.00 price objective on shares of First Solar in a research note on Monday. Robert W. Baird cut their target price on shares of First Solar from $290.00 to $266.00 and set an “outperform” rating for the company in a research note on Monday. Morgan Stanley reduced their price target on shares of First Solar from $326.00 to $307.00 and set an “overweight” rating for the company in a report on Friday, October 30th. Jefferies Financial Group reissued a “hold” rating and issued a $199.00 price target on shares of First Solar in a report on Friday, October 16th. Finally, Wells Fargo & Company decreased their price target on shares of First Solar from $313.00 to $260.00 and set an “overweight” rating on the stock in a research report on Friday, October 30th. Three 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, First Solar has an average rating of “Moderate Buy” and a consensus target price of $257.38.

First Solar Stock Performance

The stock has a 50-day simple moving average of $187.17 and a 200 day simple moving average of $215.16. The company has a market cap of $21.57 billion, a P/E ratio of 11.64, a P/E/G ratio of 0.53 and a beta of 1.73.

First Solar (NASDAQ:FSLR) last released its quarterly earnings data on Thursday, October 29th. The solar cell manufacturer reported $5.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.67 by $0.63. The business had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.29 billion. First Solar had a return on equity of 18.33% and a net margin of 37.12%. First Solar’s quarterly revenue was down 22.8% on a year-over-year basis. During the same period in the previous year, the business posted $4.24 earnings per share. Sell-side analysts anticipate that First Solar, Inc. will post 17.66 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Jason Dymbort sold 3,700 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $249.38, for a total transaction of $922,706.00. Following the completion of the transaction, the general counsel directly owned 5,624 shares of the company’s stock, valued at approximately $1,402,513.12. This trade represents a 39.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Markus Gloeckler sold 800 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $174.00, for a total transaction of $139,200.00. Following the transaction, the chief technology officer directly owned 5,042 shares of the company’s stock, 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. In the last 90 days, insiders sold 5,427 shares of company stock worth $1,250,221. 0.39% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in First Solar during the 2nd quarter worth approximately $3,310,298,000. Hill City Capital LP bought a new position in First Solar in the second quarter valued at approximately $620,133,555. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in First Solar by 7.0% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,535,836 shares of the solar cell manufacturer’s stock valued at $362,396,000 after buying an additional 100,694 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in First Solar by 4.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,305,471 shares of the solar cell manufacturer’s stock valued at $257,441,000 after buying an additional 56,300 shares in the last quarter. Finally, Pictet Asset Management Holding SA boosted its holdings in shares of First Solar by 9.6% in the third quarter. Pictet Asset Management Holding SA now owns 1,254,076 shares of the solar cell manufacturer’s stock valued at $219,666,000 after buying an additional 110,031 shares during the period. Institutional investors own 92.08% of the company’s stock.

First Solar Company Profile

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.