First Solar: 3 Different Insiders Have Sold Shares This Month

May.11.14 | About: First Solar, (FSLR)

Summary

3 insiders sold First Solar stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

First Solar (NASDAQ:FSLR) provides solar energy solutions worldwide.

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Insider selling during the last 30 days

Here is a table of First Solar's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
James Hughes CEO May 8 16,000 Yes 554 shares 96.7%
Mark Widmar CFO May 8 10,000 Yes 34,095 shares 22.7%
Georges Antoun COO May 8 19,958 Yes 0 shares 100%
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There have been 45,958 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of First Solar's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 45,958 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 12,070 0
December 2013 0 0
November 2013 9,899 0
October 2013 262 0
September 2013 2,362 0
August 2013 0 1,000
July 2013 0 0
June 2013 0 0
May 2013 14,448 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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There have been 84,999 shares sold, and there have been 1,000 shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.

Financials

First Solar reported the first-quarter financial results on May 6 with the following highlights:

Revenue $950.2 million
Net income $112.0 million
Net cash $1.2 billion
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The three insiders sold their shares after these results.

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(Source: Earnings presentation)

Outlook

First Solar's 2014 guidance is as follows:

Net sales $3.7-$4.0 billion
EPS $2.40-$2.80
Production 1.9-2.0 GW
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(Source: Earnings presentation)

Competition

First Solar's competitors include SunEdison (SUNE) and SunPower (NASDAQ:SPWR). Here is a table comparing these companies.

Company FSLR SUNE SPWR
Market Cap: 6.33B 4.47B 4.31B
Employees: 4,850 6,300 6,320
Qtrly Rev Growth (yoy): 0.26 -0.08 0.09
Revenue: 3.50B 2.01B 2.56B
Gross Margin: 0.27 0.09 0.23
EBITDA: 765.82M 9.60M 357.57M
Operating Margin: 0.15 -0.13 0.10
Net Income: 405.90M -593.50M 215.33M
EPS: 4.12 -2.46 1.47
P/E: 15.34 N/A 22.42
PEG (5 yr expected): -34.59 -0.20 0.82
P/S: 1.81 2.28 1.65
P/B: 1.37 19.67 3.48
Insider Ownership: 27.94% 0.57% 65.82%
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First Solar's P/S ratio is in line with its competitors.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
SUNE 0 0
SPWR 0 171,789
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Only First Solar has seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling First Solar, and there have not been any insiders buying First Solar during the last 30 days. All three of these insiders decreased their holdings by more than 10%. First Solar has an insider ownership of 27.94%.

First Solar has an $53 price target from the Point & Figure chart. I believe there is an opportunity for a short entry with the $53 price target. I would place a stop loss at $75, which is the two-year high. The two main reasons for the proposed short entry are a bearish Point & Figure chart, and the intensive insider-selling activity.

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Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in FSLR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.