SolarCity Corp. (SCTY) - NASDAQ
  • Tue, May 3, 1:27 PM
    • John Hancock Financial is investing $227M in 201MW worth of SolarCity (SCTY -6%) residential, commercial, and industrial solar projects.
    • SolarCity: "SolarCity monetizes the majority of 20-years of underlying cash flows—including solar renewable energy credits (SRECs) associated with the projects—and retains ownership of the assets and continues to service the customers. SolarCity retains a minority share of annual cash flows throughout the contract term as well as 99% of post-contract cash flows. The transaction raised $3.00 of financing per watt of solar generation capacity for SolarCity including tax equity investments, upfront rebates and prepayments; a blend of $3.24/watt for residential projects and $2.35/watt for commercial projects."
    • The projects cover 18 states, with no state accounting for more than 35% of the portfolio. "The vast majority" of installations were finished in 2015.
    • Shares are down sharply following the news, even as Avondale Securities' Michael Morosi (Buy rating, $40 target) calls it a "major [positive] catalyst" for shares. "With ~$15/share of net asset value on the balance sheet, the company’s DevCo is valued at 4x EV/Adjusted EBIT, which is not exactly consistent with a 40 percent grower."
    • Broader weakness in solar and energy stocks appears to be weighing; WTI crude is down 2.7% to $43.58/barrel. Q1 results arrive on the afternoon of May 9.
    | Tue, May 3, 1:27 PM | 114 Comments
  • Wed, Apr. 20, 2:24 PM
    • SolarCity (SCTY +10%) is among the biggest solar gainers on a day the Guggenheim Solar ETF is up 2.6%. A fresh rally in oil prices - WTI crude is up 3.3% to $43.89/barrel - and energy stocks appears to be helping out.
    • Also: San Francisco has passed an ordinance requiring solar panels be installed on new small and mid-sized residential and commercial buildings. California is still easily SolarCity's largest market.
    • Q1 results are expected in the coming weeks. Shares remain down 35% YTD, thanks in large part to February's Q4 installation miss and light Q1 guidance.
    | Wed, Apr. 20, 2:24 PM | 88 Comments
  • Fri, Apr. 8, 4:47 AM
    • Credit Suisse sees terrific upside in the following three solar stocks, which are the firm's "top picks" in the space:
    • Sunrun (NASDAQ:RUN): Target $21. Implied upside 201%. Reasons: differentiated multi-channel strategy: direct-to-consumer, partner network, strategic partners. CS likes RUN's "customized pricing approach." Demand is robust.
    • SolarCity (NASDAQ:SCTY): Target $89. Implied upside 218%. Reasons: SCTY is key beneficiary of two solar trends: lower costs to customer and lower cost of capital through financing vehicles. SCTY has 34% U.S. market share. Demand is robust, and the market is only 1% penetrated.
    • Jinko Solar (NYSE:JKS): Target $40. Implied upside 97%. Reasons: cost leadership in manufacturing, proven downstream execution capabilities, relative valuation and nearing opportunity to leverage a YieldCo/Growth IPP structure.
    • Now read Solar Costs Keep Falling, Fossil Fuel Costs Keep Rising »
    | Fri, Apr. 8, 4:47 AM | 74 Comments
  • Wed, Apr. 6, 8:06 PM
    • SolarCity (SCTY +4.7%) has closed on $150M of nonrecourse financing with Credit Suisse, part of its efforts to amass funding for commercial solar systems (including battery storage).
    • The company is backing the facility with a contract portfolio. "Our asset portfolio enables us to continually bring in new capital from top tier institutional and corporate investors," says the company's Jeff Munson.
    • Credit Suisse has been a longtime backer of SolarCity's securitization moves.
    • SolarCity has a lot of funds it needs to raise: It's targeting 1.25 gigawatts of installations in 2016.
    • Now read Finding Arbitrage Opportunities With Solar Stocks: SolarCity »
    | Wed, Apr. 6, 8:06 PM | 28 Comments
  • Wed, Mar. 23, 3:05 PM
    • Like many other energy names, solar stocks are underperforming (TAN -3.8%) on a day oil prices are giving back some of their recent gains. WTI crude is down 4.3% to $39.69/barrel, and Brent crude down 3.2% to $40.45/barrel. The S&P is down 0.6%, and the Nasdaq down 1%.
    • SunEdison (down 12.1%) is among the casualties, as liquidity/solvency fears continue surrounding the beaten-up solar/wind project developer. SunEdison yieldcos TerraForm Power (TERP -3.3%) and TerraForm Global (GLBL -4.7%) are also off.
    • SolarCity (SCTY -9.6%), which yesterday afternoon announced the closing of a $131M tax equity solar project fund, is also off sharply. Other notable decliners include SunPower (SPWR -7.4%), First Solar (FSLR -4%), Canadian Solar (CSIQ -4.2%), Sunrun (RUN -4.3%), Enphase (ENPH -6.5%), Daqo (DQ -5%), JinkoSolar (JKS -5.9%), Sky Solar (SKYS -11.1%), and former SunEdison acquisition target Vivint Solar (VSLR -11.3%).
    | Wed, Mar. 23, 3:05 PM | 47 Comments
  • Tue, Mar. 22, 4:53 PM
    • SolarCity (NASDAQ:SCTY) has closed a $131M tax equity funds to finance residential, commercial, and military solar projects. The company isn't disclosing its financing partner.
    • EVP Radford Small: "This is the second tax equity fund we've closed during the first quarter as we continue our cash generation post–ITC extension and plan to continue our momentum." SolarCity ended 2015 with $394M in cash/investments and over $2.6B in debt - over $1.2B in debt for its PowerCo, and over $1.4B for its DevCo.
    • In spite of its aggressive financing/installation efforts, SolarCity has said it aims to produce positive cash flow by the end of 2016. The company is targeting 1.25GW of 2016 installations, up from 870MW in 2015.
    | Tue, Mar. 22, 4:53 PM | 11 Comments
  • Fri, Mar. 11, 11:37 AM
    • Sunrun (RUN -13.4%) has plunged towards $6 after posting mixed Q4 results (revenue missed, EPS beat) and reporting its deployed 68MW of solar systems in Q4, up 83% Y/Y but below guidance of 70MW.
    • Larger rival SolarCity (SCTY -1.9%) is also lower on a strong morning for equities. SolarCity is a month removed from plunging due to a Q4 installation miss and light Q1 guidance.
    • Sunrun guided for deployments to drop to 56MW in seasonally weak Q1 - 12MW have been removed from Sunrun's backlog due to its Nevada exit. For the whole of 2016, deployments are expected to rise 40% to 285MW. Sunrun is still aiming for $1 in net present value (NPV) per watt for the whole of 2016.
    • Metrics: Bookings rose 117% to 80MW, outpacing deployment growth. Created NPV only rose by 1% Q/Q to $50M. Pre-tax project value per watt fell by $0.20 Q/Q to $4.50, and creation cost per watt fell $0.11 to $3.64. Estimated retained value rose 52% Y/Y to $1.5B. Cumulative deployments stood at 596MW at the end of 2015.
    • Financials: Solar energy system/product sales rose 79% Y/Y to $70.1M. Operating lease/incentive revenue rose 41% to $29.6M. Spending grew rapidly: Cost of revenue rose 72% to $96.9M, and operating expenses 61% to $164.8M. Sunrun ended  2015 with $204M in cash, $234M in long-term debt, and $109M in solar asset-backed notes.
    • Sunrun's Q4 results, earnings release
    | Fri, Mar. 11, 11:37 AM | 6 Comments
  • Tue, Mar. 8, 9:01 AM
    • SolarCity (NASDAQ:SCTY) +5.2% premarket after announcing a deal to install solar power systems on Whole Foods Market (NASDAQ:WFM) locations across the U.S.
    • In total, the supermarket chain plans to retrofit up to 100 stores with rooftop solar.
    | Tue, Mar. 8, 9:01 AM | 54 Comments
  • Thu, Mar. 3, 1:49 PM
    • Vague market rumors that Elon Musk is looking to take SolarCity (SCTY +18.4%) private have apparently sent the the solar installer/electricity provider's shares flying higher. 6.6M shares have been traded thus far, topping a 3-month daily average of 5.3M.
    • Likely helping out today: 24.2M shares (40% of the float) were shorted as of Feb. 12, and many of those shorts have big profits following SolarCity's recent plunge.
    • Musk, SolarCity's chairman, recently upped his stake to 22.6%. The Tesla/SpaceX CEO hasn't given any public indication he wants to fully acquire SolarCity, which sports a $2.3B market cap and could require a buyout price in the ~$3B range.
    | Thu, Mar. 3, 1:49 PM | 77 Comments
  • Wed, Feb. 24, 1:50 PM
    • SolarCity (SCTY +5%), SunPower (SPWR +7%), and Canadian Solar (CSIQ +4.5%) are doing well after First Solar (FSLR +12.9%) beat Q4 estimates (strongly on EPS), slightly lowered its 2016 sales guidance, and reiterated its 2016 EPS guidance.
    • The numbers come a week after Canadian soared thanks to a Q4 guidance hike, and two weeks after SolarCity plunged due to a Q4 installation guidance miss and soft Q1 outlook. SunPower fell moderately last Friday after issuing light guidance to go with a Q4 beat.
    • Baird's Ben Kallo (Outperform, target hiked by $5 to $74) considers First Solar well-positioned to continue growing margins via efficiency gains and cost reductions. He also notes ~4.5GW of First Solar's ~20.3GW potential bookings pipeline involves mid-to-late stage opportunities, which gives him confidence in the company's ability to fill its order book through 2017.
    • Other analysts downplay the sales guidance cut, attributing it to the shifting of projects to 2017 thanks to the ITC tax credit extension. Meanwhile, Oppenheimer's Colin Rusch (Outperform rating, $76 target) sees First Solar "regaining the mantle of solar's cost leader."
    • First Solar's results/guidance, Q4 details
    | Wed, Feb. 24, 1:50 PM | 9 Comments
  • Tue, Feb. 23, 10:38 AM
    • Believing there's elevated risk/uncertainty surrounding the company's business model, JPMorgan's Paul Coster has downgraded SolarCity (SCTY -1.2%) to Neutral, and cut his target by $15 to $29 (still 55% above current levels).
    • Coster nonetheless thinks SolarCity has potential positive catalysts,with the largest being solar financing deals with an incrementally lower cost of capital (would help alleviate recent financing concerns).
    • The downgrade comes with the U.S. solar installer down 63% in 2016 as of yesterday's close. Barclays downgraded on Feb. 11, shortly after SolarCity missed its Q4 installation guidance and offered a soft Q1 outlook (while reiterating full-year installation guidance).
    | Tue, Feb. 23, 10:38 AM | 17 Comments
  • Wed, Feb. 17, 2:10 PM
    • U.S. residential solar installers SolarCity (SCTY +19.1%) and Sunrun (RUN +18.8%) are delivering massive gains on a good day for markets. The Nasdaq is up 2.2%, the S&P is up 1.7%, and WTI crude is up 5.3% to $30.58/barrel after Iran's oil minister suggested his country would support efforts to stabilize oil prices.
    • Yesterday, SolarCity announced fellow Elon Musk company Tesla would supply batteries for a 13MW solar/energy storage system to be built by SolarCity in Hawaii. The announcement comes nine months after SolarCity unveiled a line of solar energy storage solutions that rely on Tesla batteries.
    • Meanwhile, Hilary Clinton and Bernie Sanders have both condemned the Nevada PUC's recent decision to cut net metering rates and increase connection charges for new and existing solar installations. Sanders highlighted the efforts of local utility NV Energy (owned by Warren Buffett's Berkshire Hathaway) to get the PUC to enact rule changes. "You might want to be thinking about writing a letter with a few hundred thousand signatures on it to Mr. Buffett and say, ‘You know what? What you’re doing here in Nevada is exactly wrong.'"
    • Clinton went a step further and called for federal law changes that would prohibit state agencies/utilities from retroactively changing rates and fees for existing customers. "Utilities should not be allowed to penalize consumers with retroactive rule changes that cause financial hardship and slow the transition to a clean energy economy."
    • Earlier this week, the PUC announced its new solar rates/fees would be implemented over 12 years rather than the 4 it originally recommended. As one would expect, solar advocates called the change inadequate.
    • Yesterday: Solar stocks post big gains as markets rally, Canadian hikes guidance
    • Update: Likely helping SolarCity out: Elon Musk disclosed he bought another $10M worth of shares. His total stake now stands at 22.6%.
    | Wed, Feb. 17, 2:10 PM | 10 Comments
  • Tue, Feb. 16, 2:36 PM
    • Solar stocks are among the standouts (TAN +6.4%) as the Nasdaq rises 2.1% and the S&P 1.6%. The gains come after Canadian Solar (up 16.6%) hiked its Q4 sales, module shipment, and gross margin guidance.
    • SunEdison (SUNE +20.6%), clobbered last week amid a temporary asset sale restraining order that further stoked bankruptcy fears, is rebounding. The gains come in spite of a downgrade to Neutral from BofA/Merrill's Krish Sankar, who's worried about a mixture of financing, legal, and execution issues.
    • Yingli (YGE +15.9%), another company that has seen its share of solvency fears, is also up strongly. Other big gainers include SunPower (SPWR +11.2%), SolarCity (SCTY +6.2%), JinkoSolar (JKS +11.6%), Trina (TSL +7.5%), 8point3 Energy (CAFD +8.4%), Enphase (ENPH +7.7%), Daqo (DQ +7.2%), JA Solar (JASO +6.9%), Sky Solar (SKYS +7.5%), and SunEdison acquisition target Vivint Solar (VSLR +9.5%).
    • Five days ago: Solar stocks hammered again; SunEdison tumbles after lawsuit
    | Tue, Feb. 16, 2:36 PM | 25 Comments
  • Thu, Feb. 11, 11:23 AM
    • SolarCity (NASDAQ:SCTY) COO Tanguy Serra has been named the company's new CFO. He replaces Brad Buss, whose pending retirement was announced in November, along with news Serra has been promoted to President.
    • Meanwhile, SolarCity has added to Wednesday's huge post-earnings losses following a ' to Equal-Weight from Barclays' Jon Windham. He's worried about SolarCity's soft Q1 installation guidance, rising funding costs, and the potential for a pending Supreme Court ruling to delay implementation of the Clean Power Plan. SolarCity rival Sunrun (RUN -12.4%) has also been downgraded to Equal-Weight, and is seeing even bigger losses.
    • Windham, whose SolarCity target has been cut by $29 to $20, adds markets are currently averse to companies relying on externally-financed growth, and thus unlikely to grant "significant value to long-term value creation for the residential installers in the near-term.”
    • Raymond James' Pavel Molchanov went contrarian yesterday and upgraded SolarCity to Strong Buy. He argued the market's reaction to the guidance was excessive "since the quarterly [installation] progression is always back-end-loaded," and that SolarCity's valuation is now far more compelling. "Put simply, for the first time in its three-plus years as a public company, SCTY shares are trading at a discount to the current [net present value]/share figure. That is to say, the stock is currently pricing in zero credit for any future expansion in NPV."
    • Shares are now down 33% from Tuesday's close, and 66% YTD.
    | Thu, Feb. 11, 11:23 AM | 9 Comments
  • Wed, Feb. 10, 12:42 PM
    | Wed, Feb. 10, 12:42 PM | 7 Comments
  • Wed, Feb. 10, 9:15 AM
    | Wed, Feb. 10, 9:15 AM | 18 Comments
Company Description
SolarCity Corp. engages in the business of renewable energy services. It offers installation, ongoing monitoring and repair services of solar energy systems in the U.S. The company provides services to homeowners, businesses, schools, non-profits and government organizations. SolarCity was... More
Country: United States