Wall Street Whacks First Solar, Inc., SunPower Corporation

First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation (NASDAQ:SPWR) are continuing to struggle, following bearish initiations at JMP Securities

Sep 8, 2016 at 9:53 AM
facebook twitter linkedin


Solar stocks are feeling the heat today. Specifically, First Solar, Inc. (NASDAQ:FSLR) and SunPower Corporation (NASDAQ:SPWR) are trading lower following some negative attention on Wall Street. Below, we'll take a closer look at how one bearish analyst firm's decisions are weighing on FSLR and SPWR.

FSLR is down 2.4% at $37.55, after JMP Securities initiated coverage with an "underperform" opinion and a $32 price target. This puts the solar stock just a stone's throw from its nearly three-year low of $36.75, tagged last month.

Amid First Solar, Inc.'s technical struggles, options traders have grown bearish. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.19 ranks in the 81st percentile of its annual range. Option players aren't the only skeptics -- short interest exploded by 31.5% during the last two reporting periods, and now accounts for roughly one-fifth of FSLR's float.

Meanwhile, SPWR has dropped 1.8% to trade at $10.03, quickly approaching its late-August three-year low of $9.62. Weighing on the solar stock is JMP's "underperform" initiation, as well as a $6 price target -- territory not charted since early 2013.

Despite these woes, options traders have been buying to open calls over puts at a rapid-fire rate at the ISE, CBOE, and PHLX. SunPower Corporation's 10-day call/put volume ratio sits at a top-heavy 9.15, just 6 percentage points shy of an annual peak. However, with 28.5% of the stock's float sold short, it's likely some calls were purchased by short sellers hedging against a surprise rally in SPWR shares.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners