First Solar Shares Slip Amid Mixed Analyst Views and Insider Sales
First Solar shares fell 5.2% to $191.79 despite a recent EPS beat, as analysts cut targets and insiders reduced positions.
First Solar (NASDAQ: FSLR) shares declined 5.2% to $191.79 during mid-day trading on Wednesday, falling below its previous close of $202.34. The stock hit a low of $192.28, with volume of 1.04 million shares, representing a 56% drop from the average daily volume of 2.35 million shares.
The decline follows a period of mixed sentiment among investors. While the company recently beat earnings expectations, recent price target reductions by key firms and notable insider selling have pressured the stock price below its 50-day moving average of $215.48.
Quarterly Earnings Exceeded Expectations
First Solar reported earnings per share of $3.92 for the quarter ended in late July, surpassing the consensus estimate of $2.90 by $1.02. Revenue stood at $1.06 billion, in line with analyst projections, though this figure marked a 3.4% decrease from the $1.10 billion generated in the same period last year. The company achieved a net margin of 32.47% and a return on equity of 18.02%.
Analyst Sentiment Shifts Downward
Recent research notes reflect a cautious outlook. Sanford C. Bernstein lowered its price target from $217.00 to $197.00 and assigned an underperform rating in late July. Conversely, Barclays raised its target to $279.00 in mid-July, maintaining an overweight stance. The current consensus rating is Moderate Buy, with an average target price of $266.06.
According to data from solar stocks trackers like MarketBeat, the stock currently trades at a P/E ratio of 11.88 and a P/E/G ratio of 0.55. The company’s market capitalization stands at $20.68 billion, with a beta of 1.74 indicating higher volatility than the broader market.
Insiders Reduce Stock Holdings
Company insiders have been selling shares over the last 90 days. General Counsel Jason Dymbort sold 3,700 shares for approximately $922,706 in August, reducing his position by nearly 40%. CTO Markus Gloeckler sold 3,425 shares for roughly $750,000 in early August, decreasing his ownership by over 31%. Both sales were executed under pre-arranged Rule 10b5-1 trading plans.
In total, insiders sold 15,881 shares valued at $3.62 million during this period. Insiders currently hold 0.39% of the company’s total stock. Meanwhile, institutional activity shows varied positions, with Root Financial Partners increasing its holdings by 18.2% in the fourth quarter.
