Canadian Solar Inc. (CSIQ) Stock: Here’s Why It’s Declining


Canadian Solar Inc. (CSIQ) is falling in the market today. The stock, focused in the technology space, is currently priced at $18.75 after heading down -2.75% so far today. When it comes to tech companies, there are quite a few factors that have the potential to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories relating to CSIQ:

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Mar-21-19 04:36PM Why Guess?, Canadian Solar, and Lands’ End Slumped Today
04:35PM Edited Transcript of CSIQ earnings conference call or presentation 21-Mar-19 12:00pm GMT
04:29PM Why Canadian Solar Shares Plunged 18.7% Today
01:59PM Canadian Solar Inc (CSIQ) Q4 2018 Earnings Conference Call Transcript
01:12PM Canadian Solar Earnings: CSIQ Stock Slides Lower on Profit Warning

However, when making an investing decision, prospective investors should look into much more than news, especially in the ever changing tech space. Here’s what’s happening with Canadian Solar Inc..

What We’ve Seen From CSIQ

While a decline in a single session, like the fall that we’re seeing from Canadian Solar Inc. may lead to fear in some investors, a single session fall by itself should not be the reason for a decision to, or not to, buy a company’s stock. It’s generally smart to look into trends just a single session. As it relates to CSIQ, below are the trends that we’ve seen:

  • Past 5 Trading Sessions – Over the last week, CSIQ has produced a change in price amounting to -19.49%.
  • Past Month – The ROI from Canadian Solar Inc. over the past month works out to -15.46%.
  • Quarterly – Over the last three months, the company has produced a return that comes to 16.46%
  • Past 6 Months – Throughout the last six months, we’ve seen a change of 25.50% from the stock.
  • YTD – Since the the first trading session of this year CSIQ has resulted in a return on investment of 30.75%.
  • Full Year – Lastly, throughout the past full year, we’ve seen a change in the amount of 9.33% from CSIQ. Throughout this period, the stock has traded at a high of -27.58% and a low of 64.91%.

Crucial Ratios

Digging into various key ratios having to do with a stock generally gives prospective investors a view of just how risky and/or potentially profitable a an investment option may be. Here are a few of the key ratios to look at when digging into CSIQ.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this ratio, the more investors are expecting that the price of the stock is going to tumble. Across the sector, strong technology stocks tend to carry a lower short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, in relation to Canadian Solar Inc., the stock’s short ratio comes to 3.50.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure the company’s abilities to pay its debts as they mature with only quick assets or current assets. Because in tech, many companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, the current and quick ratios can look upsetting. Nonetheless, quite a few gems in the tech industry come with good current and quick ratios. When it comes to CSIQ, the quick and current ratios come to 0.80 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 19.83.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of shares. In this case, the cash to share value works out to 8.81.

Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CSIQ, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors own 42.20% of CSIQ. On the other hand, it’s worth noting that institutional ownership has seen a move in the amount of -0.02% in the past 3 months.
  • Insiders – As far as insiders go, those close to the situation currently own 31.00% of Canadian Solar Inc.. Their ownership of the company has moved 0.00% in the past quarter.

How Analysts Feel About Canadian Solar Inc.

While it’s rarely a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to consider their opinions when validating your own due diligence when it comes to making investment decisions in the technology industry. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to CSIQ.

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Feb-20-19 Upgrade Cascend Securities Hold → Buy $21 → $27
Feb-20-19 Reiterated Cascend Securities Buy $21 → $27
Feb-11-19 Upgrade UBS Sell → Neutral $23
Jan-03-19 Upgrade Goldman Neutral → Buy
Dec-18-18 Upgrade Cascend Securities Hold → Buy

What We’ve Seen In earnings results

What have ween seen from CSIQ in terms of financial results?Here is the data:

  • Analyst Expectations – Currently, Wall Street analysts are expecting that the company will generate EPS in the amount of 2.48, with 1.01 to be reported in the earnings announcement for the current quarter. Although this information isn’t tide to earnings, because we are chatting about Wall St. analysts, CSIQ is presently rated a 2.70 when rated on a scale from 1 to 5 where 1 is the worst average Wall Street analyst rating and 5 is the best possible rating.
  • 5-Year Sales – Over the last 5 years, Canadian Solar Inc. has announced a movement in revenue that comes to a total of 21.20%. EPS through the period have experienced movement in the amount of 18.90%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is commonly referred to as in the world of humans, Canadian Solar Inc. has generated a change in earnings that amounts to 401.50%. The company has also seen movement with regard to revenue that adds up to -15.80%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 58.97M shares of Canadian Solar Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CSIQ has a float of 44.72M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CSIQ, the short percent of the float is 6.92%.

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