Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
James HughesCEOMay 816,000Yes554 shares96.7%
Mark WidmarCFOMay 810,000Yes34,095 shares22.7%
Georges AntounCOOMay 819,958Yes0 shares100%

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.

MonthInsider selling / sharesInsider buying / shares
May 201445,9580
April 201400
March 201400
February 201400
January 201412,0700
December 201300
November 20139,8990
October 20132620
September 20132,3620
August 201301,000
July 201300
June 201300
May 201314,4480
April 201300
March 201300
February 201300
January 201300

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

The three insiders sold their shares after these results.

(click to enlarge)

(Source: Earnings presentation)

Outlook

First Solar's 2014 guidance is as follows:

Net sales$3.7-$4.0 billion
EPS$2.40-$2.80
Production1.9-2.0 GW

(click to enlarge)

(Source: Earnings presentation)

Competition

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

CompanyFSLRSUNESPWR
Market Cap:6.33B4.47B4.31B
Employees:4,8506,3006,320
Qtrly Rev Growth (yoy):0.26-0.080.09
Revenue:3.50B2.01B2.56B
Gross Margin:0.270.090.23
EBITDA:765.82M9.60M357.57M
Operating Margin:0.15-0.130.10
Net Income:405.90M-593.50M215.33M
EPS:4.12-2.461.47
P/E:15.34N/A22.42
PEG (5 yr expected):-34.59-0.200.82
P/S:1.812.281.65
P/B:1.3719.673.48
Insider Ownership:27.94%0.57%65.82%

First Solar's P/S ratio is in line with its competitors.

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

CompanyInsider buying / sharesInsider selling / shares
SUNE00
SPWR0171,789

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.

(click to enlarge)

Source: First Solar: 3 Different Insiders Have Sold Shares This Month