Gains May Be On The Menu For Canadian Solar Inc. (NASDAQ: CSIQ)


    Invesco Capital Management LLC recently announced the acquisition of new stake in Canadian Solar Inc. (NASDAQ:CSIQ). The institutional investor has increased its shareholding in the Technology company by 18.23% to 2.03 million shares with purchase of 0.31 million shares. This fresh investment now brings its stake to 3.42% valued currently at $44.91 million. In addition, BlackRock Investment Management (.. raised its holdings by 0.22 million to 1.16 million shares. And Grantham, Mayo, Van Otterloo & Co.. has lifted its position by 149.19% or 0.66 million shares – to 1.1 million shares.

    With over 4.81 million Canadian Solar Inc. (CSIQ) shares trading Friday and a closing price of $32.52 on the day, the dollar volume was approximately $156.45 million. The shares have shown a positive weekly performance of 25.27% and its price on 08/28/20 gained nearly 13.55%. Currently, there are 59.37M common shares owned by the public and among those 45.07M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for CSIQ have a consensus price objective of $28.92. The analysts have set the share’s price value over the next 12 months at a high of $33.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Canadian Solar Inc. stock is 2.30 for the next 12 months. The average price target is -14.67% below its last price level and a downside to the estimated low will see the stock lose -35.5% over that period. But an upside of 1.45% will see the stock hit the forecast high price target while mean target price for the stock is $29.50.

    The top 3 mutual fund holders in Canadian Solar Inc. are Schroder ISF – Emerging Asia, Invesco Solar ETF, and iShares II Plc – Global Clean Ene. Schroder ISF – Emerging Asia owns 2.16 million shares of the company’s stock, all valued at over $47.72 million. Invesco Solar ETF bought 13046.0 shares to see its total holdings expand to 1.72 million shares valued at over $38.08 million and representing 2.90% of the shares outstanding. iShares II Plc – Global Clean Ene now owns shares totaling to 2.13% of the shares outstanding.

    Shares of Canadian Solar Inc. (NASDAQ: CSIQ) opened at $29.25, up $0.61 from a prior closing price of $28.64. However, the script later closed the day at $32.52, up 13.55%. The company’s stock has a 5-day price change of 25.27% and 73.81% over the past three months. CSIQ shares are trading 47.15% year to date (YTD), with the 12-month market performance up to 39.63% higher. It has a 12-month low price of $12.00 and touched a high of $28.98 over the same period. Currently, 4.81 million shares have been traded, compared to an average intraday trading volume of 1.22 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 27.68%, 40.50%, and 63.02% respectively.

    Institutional ownership of Canadian Solar Inc. (NASDAQ: CSIQ) shares accounts for 47.60% of the company’s 59.37M shares outstanding. Mutual fund holders own 16.44%, while other institutional holders and individual stakeholders account for 27.70% and — respectively.

    It has a market capitalization of $1.69B and a beta (3y monthly) value of 1.57. The stock’s trailing 12-month PE ratio is 7.58, while the earnings-per-share (ttm) stands at $4.29. The company has a PEG of 0.38 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 1.49. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.35% over the week and 5.48% over the month.

    Analysts forecast that Canadian Solar Inc. (CSIQ) will achieve an EPS of -$0.05 for the current quarter, $0.54 for the next quarter and $3.31 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.24 while analysts give the company a high EPS estimate of $0.07. Comparatively, EPS for the current quarter was $0.96 a year ago. Earnings per share for the fiscal year are expected to decrease by -26.80%, and 17.85% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to -7.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate Canadian Solar Inc. (CSIQ) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 3 of the 6 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CSIQ, a number of firms have released research notes about the stock. Cascend Securities stated their Buy rating for the stock in a research note on August 16, 2019, with the firm’s price target at $25-$30. JP Morgan coverage for the Canadian Solar Inc. (CSIQ) stock in a research note released on April 11, 2019 offered a Neutral rating with a price target of $22. Cascend Securities was of a view on February 20, 2019 that the stock is Buy, while Cascend Securities gave the stock Buy rating on February 20, 2019, issuing a price target of $21- $27. UBS on their part issued Neutral rating on February 11, 2019.


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