Short Interest in Solar Stocks Fell, but Was It Too Soon?

By Paul Ausick Updated Jan 13, 3:06PM EST · Published Jan 13, 7:25AM EST

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Short Interest in Solar Stocks Fell, but Was It Too Soon? — © Thinkstock

Short interest moves among solar and alternative energy stocks mostly increased during the two-week reporting period that ended on December 31. In the solar sector, two of the five companies we watch saw short interest rise. Two of four alt energy stocks also saw an increase in short interest during the period.

While share prices for the solar energy-related firms rose in the two-week period, recent price movements have been negative. This could well be due to the falling price of crude oil, because oil drives the energy sector and the big drop we’ve seen in crude prices so far in 2016 will affect all types of energy.

First Solar Inc. (NASDAQ: FSLR) saw short interest decrease by 7.1% to 4.96 million shares, which represents 6.7% of the company’s float. Days to cover remained unchanged at two. In the two-week short interest period through December 31, the stock’s share price rose about 13%. Its 52-week trading range is $39.18 to $72.12, and it closed at $65.22 on Tuesday, down about 0.3% for the day.

SunEdison Inc. (NYSE: SUNE) showed a decrease of 10.7% in short interest to 109.93 million shares. About 35% of the company’s float was short, and the days to cover remained flat at two. In the latest two-week short interest reporting period, the share price rose by nearly 16%. The stock closed at $3.02 on Tuesday, down about 9.6% for the day and in a 52-week trading range of $2.36 to $33.45. The recovery in the prior two-week short interest period did not last. The company’s debt restructuring announced last week is not popular, and short sellers who bailed out at the end of December are probably regretting it today.
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SunPower Corp.‘s (NASDAQ: SPWR) short interest rose by 15.9% to 10.83 million shares, or 18.9% of the company’s float. In the two-week short interest period, the share price rose by about 29%. The stock’s 52-week trading range is $18.25 to $35.11, and it closed at $24.31 on Tuesday, down about 3.7% for the day. The days to cover rose from three to four.
SolarCity Corp. (NASDAQ: SCTY) saw short interest drop by 14.3% to 25.45 million shares, or 41.2% of the company’s total float. Days to cover fell from six to five. In the two-week short interest period, the share price rose nearly 23%. The stock’s 52-week range is $24.07 to $63.79, and its shares closed at $44.72 Tuesday night, down more than 6% for the day. The share price rose sharply when the federal budget bill was passed, and the increase has held pretty steady after an early dip. Short sellers could just be keeping their powder dry on this stock until it reports earnings in the middle of next month.

Canadian Solar Inc. (NASDAQ: CSIQ) saw a rise of just 0.1% in short interest in the two weeks to December 31. Some 13.5% of the total float, or 5.75 million shares, were short, and the days to cover fell from three to two. The company’s shares added more than 17% over the short interest period. Shares closed on Tuesday at $21.72, down nearly 3% for the day, in a 52-week trading range of $14.16 to $40.08.

FuelCell Energy Inc. (NASDAQ: FCEL) also posted a minimal increase of 0.1% in short interest during the two-week period. Some 3.3 million were short as of year’s end. The stock closed at $5.50 on Tuesday, down about 6.5% for the day, in a 52-week range of $4.90 to $17.40. Shares dropped more than 17% in the short interest period.

Plug Power Inc. (NASDAQ: PLUG) saw short interest decrease by 2.9% to 33.75 million shares. The days to cover fell from 23 to 14, and about 18.9% of the company’s shares were short. In the two weeks to December 31, the stock’s share price rose by about 7.7%. Its 52-week trading range is $1.56 to $3.38, and shares closed Thursday at $1.81, down about 2.2% for the day.
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Clean Energy Fuels Corp. (NASDAQ: CLNE) saw a decline of 19.8% in short interest to 14.5 million shares. About 20.5% of the company’s float was short, and the days to cover fell from 11 to seven. Shares remained flat in the latter weeks of December. The stock closed most recently at $2.97, down about 7.8% on the day, in a 52-week range of $2.80 to $10.48. The low was posted Tuesday.

Pacific Ethanol Inc. (NASDAQ: PEIX) saw its short interest rise by 2.9% in the two-week period to 3.94 million shares, about 10.7% of the company’s float. Days to cover rose from four to six. The stock price rose nearly 16% in the short interest period. Shares closed at $3.19 on Tuesday, down about 5% on the day, in a 52-week range of $3.03 to $13.70. The low was posted on Tuesday.

About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.