Energy

Did Short Sellers Shy Away From Solar Stocks Too Soon?

Paul Ausick

Published: May 11, 2016 7:20 am

Last Updated: January 13, 2020 9:35 am

Short interest moves among solar and alternative energy stocks were mixed during the two-week reporting period that ended on April 29. In the solar sector, three of the four companies we watch saw short interest drop, and three of four alt energy stocks also saw a decrease in short interest during the period.

Following the bankruptcy filing of SunEdison on April 21, solar stocks have suffered from a crisis of confidence in investors. SolarCity’s weak first-quarter results and lowered guidance issued earlier this week simply underlined investors’ wariness about the sector as a whole.

First Solar Inc. (NASDAQ: FSLR) saw short interest increase by 0.4% to 4.86 million shares, which represents 6.5% of the company’s float. Days to cover remained unchanged at two. In the two-week short interest period, the stock’s share price fell by about 7.6%. Its 52-week trading range is $40.25 to $74.29, and it closed at $51.27 on Tuesday, up about 1.4% for the day, but down by about $10 a share in the past month.

SunPower Corp. (NASDAQ: SPWR) short interest fell by 8.8% to 12.07 million shares, or 21.1% of the company’s float. In the short interest period, the share price fell by about 6.2%. The stock’s 52-week range is $16.11 to $33.29, and it closed at $16.85.93 on Tuesday, down about 1.5% for the day after posting a new 52-week low. Days to cover rose from seven to eight.

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