Falling Short on Goals, SolarCity Shares Drop

The stock took a massive beating from shareholders following its fourth quarter earnings disclosure for fiscal year 2015 after market-close on Tuesday.

Several other research firms have also weighed in on SCTY. The stock has dropped below support and has set a new low for the year. Cowen & Co initiated shares with a ” Market Perform” rating and a $50 target share price in their report from an August 25. Of the analysts providing short term targets, the most bullish analyst has a $104 target on the stock. Robert W. Baird downgraded shares of SolarCity Corp from an outperform rating to a neutral rating and decreased their price objective for the stock from $71.00 to $60.00 in a report on Friday, October 30th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, thirteen have given a buy rating and two have issued a strong buy rating to the stock. Also, Director Elon Musk acquired 307,152 shares of the stock in a transaction that occurred on Friday, November 13th.

SolarCity Corp closed down -1.63 points or -5.51% at $27.94 with 40,21,176 shares getting traded on Monday. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

Since March 9, 2015, the stock had 0 buys, and 4 insider sales for $1.21 million net activity. On Nov 16, 2015, Tanguy Serra (Chief Operations Officer) sold 3,443 shares at $26.57 per share price, according to the Form-4 filing with the securities and exchange commission. Institutions now own 52.19 million shares which is 0.67% less than the previous share count of 52.54 million in 2015Q2. Sure, the company is investing in infrastructure.

SolarCity said part of the slower installations in the latest quarter were due to the company abruptly stopping business in Nevada.

Shen had been expecting the fourth quarter to be “healthy” and first quarter volumes of 215 megawatts or more. Creative Planning now owns 7,092 shares of the renewable energy company’s stock valued at $362,000 after buying an additional 1,910 shares in the last quarter.

If you bought SolarCity for its incredible growth potential then it’s easy to be disappointed by the fourth quarter numbers. In the first quarter, SCTY expects to generate a loss of between $2.55 per share and $2.65 per share. Finally, Shinko Asset Management Co. ProShare Advisors LLC now owns 5,090 shares of the renewable energy company’s stock worth $260,000 after buying an additional 260 shares during the period. And with the company’s market cap likely to be below $2 billion on Wednesday there’s great value given the $2.0 billion in discounted pre-tax unlevered cash flow left on contracts.

SolarCity Corp (NASDAQ:SCTY) released its earnings after the closing bell on Tuesday and the reaction wasn’t pretty. The consensus estimate is for a loss of $2.36 per share.

Beat revenue estimates. The company saw revenue figures of $115.48, surpassing our estimate of $106 million.