There is no way First Solar Inc. (FSLR) can keep these numbers up

First Solar Inc. (NASDAQ: FSLR) stock fell -2.68% on Tuesday to $171.49 against a previous-day closing price of $176.21. With 1.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.99 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $175.49 whereas the lowest price it dropped to was $170.39. The 52-week range on FSLR shows that it touched its highest point at $185.28 and its lowest point at $59.60 during that stretch. It currently has a 1-year price target of $171.43. Beta for the stock currently stands at 1.34.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FSLR was down-trending over the past week, with a drop of -3.44%, but this was up by 5.82% over a month. Three-month performance surged to 39.87% while six-month performance rose 131.27%. The stock gained 123.23% in the past year, while it has gained 14.48% so far this year. A look at the trailing 12-month EPS for FSLR yields 0.88 with Next year EPS estimates of 4.90. For the next quarter, that number is -0.16. This implies an EPS growth rate of 17.40% for this year and 1060.80% for next year. EPS is expected to grow by 5.64% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 25.30%.

Float and Shares Shorts:

At present, 106.60 million FSLR shares are outstanding with a float of 101.07 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.92 million, which was 4.62% higher than short shares on Sep 14, 2022. In addition to Mr. Mark R. Widmar as the firm’s CEO & Director, Mr. Alexander R. Bradley serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 80.70% of FSLR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.09% of FSLR, in contrast to 38.98% held by mutual funds. Shares owned by individuals account for 28.74%. As the largest shareholder in FSLR with 10.85% of the stake, The Vanguard Group, Inc. holds 11,570,363 shares worth 11,570,363. A second-largest stockholder of FSLR, BlackRock Fund Advisors, holds 10,286,639 shares, controlling over 9.65% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in FSLR, holding 4,320,970 shares or 4.05% stake. With a 2.89% stake in FSLR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,077,758 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.45% of FSLR stock, is the second-largest Mutual Fund holder. It holds 2,609,564 shares valued at 390.89 million. Vanguard 500 Index Fund holds 2.15% of the stake in FSLR, owning 2,291,909 shares worth 343.31 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FSLR since 27 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FSLR analysts setting a high price target of $233.00 and a low target of $140.00, the average target price over the next 12 months is $187.76. Based on these targets, FSLR could surge 35.87% to reach the target high and fall by -18.36% to reach the target low. Reaching the average price target will result in a growth of 9.49% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FSLR will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$0.37 being high and -$2.22 being low. For FSLR, this leads to a yearly average estimate of -$0.74. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. First Solar Inc. surprised analysts by -$0.21 when it reported -$0.46 EPS against a consensus estimate of -$0.25. The surprise factor in the prior quarter was $0.88. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is -$0.54. The average estimate for the next quarter is thus -$0.17.

Summary of Insider Activity:

Insiders traded FSLR stock several times over the past three months with 11 Buys and 1 Sells. In these transactions, 3,073 shares were bought while 81 shares were sold. The number of buy transactions has increased to 98 while that of sell transactions has risen to 89 over the past year. The total number of shares bought during that period was 318,824 while 245,868 shares were sold.

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