Energy

Short Sellers Don't Believe Solar Stocks Can Continue Recent Run Higher

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Changes in short interest of solar stocks generally rose during the two-week period to October 31. Partly that is due to better performance by the various companies, performance that short sellers don’t think can last. We have added a solar company to our usual coverage and dropped GT Advanced Technologies Inc. (NASDAQ: GTAT), which filed for bankruptcy in early October.

First Solar Inc. (NASDAQ: FSLR) saw short interest decline by 4.1% to 8.66 million shares, which represents 11.8% of the company’s float, and days to cover rose to four. In the two-week short interest period to October 31, shares rose more than 10% but remain down about 6.7% year-to-date through Tuesday’s close at $50.99. The stock’s 52-week range is $47.04 to $74.84.

SunEdison Inc. (NYSE: SUNE) showed an increase of 10.6% in short interest to 74.84 million shares. About 30% of the company’s stock was short and days to cover rose to five. In the latest two-week short interest reporting period, shares rose nearly 32%, and they are up nearly 37% year-to-date through Tuesday night’s close. The stock closed at $17.81 in a 52-week range of $11.11 to $24.35.

SunPower Corp. (NASDAQ: SPWR) short interest rose to 10.48 million shares, or 20.1% of the company’s float. In the two-week short interest period, shares rose nearly 16% but are down about 1.5% year-to-date, after closing at $29.37 on Tuesday. The stock’s 52-week range is $25.38 to $42.07. Days to cover fell to three.

SolarCity Corp. (NASDAQ: SCTY) saw a short interest rise of 12.1% to 17.13 million shares, or 32.4% of the company’s total float. Days to cover rose to four. In the two-week short interest period, shares rose about 19%, but they are down about 10% year-to-date through Tuesday’s close. The stock’s 52-week range is $42.38 to $88.35, and shares closed at $50.96 Tuesday.

Canadian Solar Inc. (NASDAQ: CSIQ) has seen a rise of 4% in short interest in the two-week period. Some 4% of the stock, 3.5 million shares, were short, but days to cover was just one. The company’s shares were up 22% over the two weeks and are up 5.5% year-to-date. The company beat earnings estimates soundly Wednesday morning, and shares are trading up more than 7% after closing Tuesday night, at $31.47 in a 52-week range of $21.38 to $44.50.

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