Big Swings in Solar Short Interest in June

By and large the

among the leading U.S. solar-related stocks grew between the May 29 and June 15 settlement dates. The most notable moves in that time happened to

,

and

. Below is a quick look at how these three stocks have fared recently and what analysts expect from them. That is followed by a glance at short interest moves in other leading solar stocks.

Short interest in this company, now known as RGS Energy, tumbled more than 51 percent to around 50,400 shares during the period. That was by far the smallest number of shares short in the past year, and it represents a little more than 1 percent of the float. The days to cover remains less than one. This Colorado-based solar energy company had a reverse stock split in May, and now it has a market capitalization of only less than $15 million. Its operating margin and its return on equity both remain in the red, but double-digit percentage revenue growth is forecast for the current year and the next. Thomson/First Call listed no analyst recommendations, and no price targets since the reverse stock split, which took the number of outstanding shares down from about 96 million to less than 5 million. The company had received a delisting warning from Nasdaq earlier in the year. Short sellers watched the stock rise more than 50 percent but give back some of that gain during the two-week period, and it has climbed another 25 percent since that time. Over the past six months, the stock has underperformed the two other stocks featured here and the Nasdaq.

Short interest in this maker of PV solar panel components jumped from more than 221,000 at the previous settlement date to more than 448,000 by the middle of June. That was the largest number of shares short since its initial public offering, and it was less than 4 percent of the total float. SolarEdge has teamed with Tesla on the latter's Powerwall home battery system. SolarEdge held its initial public offering back in March and now has a market cap of around $1.5 billion. Its price-to-earnings (P/E) ratio is sky-high, and its return on equity is in negative territory. All of the six analysts surveyed recommend buying SolarEdge shares, with two of them rating the stock at Strong Buy. But note that the mean price target, or where analysts expect the share price to go, is only marginally higher than the current share price. During the two-week period, the share price shrank about 2 percent, though it has recovered since that time. It is well above the 50-day moving average. Since its IPO, SolarEdge shares have outperformed not only the two other stocks featured here, but the Nasdaq and the S&P 500 as well.

The number of shares sold short in this integrated solar products and services company increased around 9 percent in early June to about 7.45 million. That was the greatest level of short interest since February and totaled almost 14 percent of the float. The days to cover rose to about six. Headquartered in San Jose, California, this company has a market cap of about $4 billion. In the period, it prepared to break ground on

in Kings County, Calif. It has a P/E ratio that is less than the industry average and an operating margin greater that the industry average. All but two of the 14 analysts polled recommend buying shares, and that has been the case for at least three months. A move to their mean price target would represent a 25 percent gain from the current share price. Note though that the consensus target is less than the 52-week high. Between the settlement dates, shares increased more than 7 percent, and they are now almost 17 percent higher year to date. The stock has outperformed competitor/partner First Solar over the past six months, and they both outperformed the Nasdaq and the S&P 500.

Gains in the number of First Solar, SolarCity, SunEdison, TerraForm Power and Vivint Solar shares sold short during the period were more modest. However, short sellers also shied away from Advanced Energy Industries in the first two weeks of the month. Among foreign-based solar companies, the number of U.S.-listed shares (or ADSs) sold short in Canadian Solar, China Sunergy, JA Solar Holdings, ReneSola, Trina Solar and Yingli Green Energy also shrank during the period. However, Hanwha Q CELLS and JinkoSolar saw increases in their short interest.

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