First Solar Board Member Trades $1.00M In Company Stock

PAUL STEBBINS, Board Member at First Solar FSLR, reported an insider sell on May 23, according to a new SEC filing.

What Happened: STEBBINS's recent move involves selling 4,000 shares of First Solar. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $1,001,400.

Monitoring the market, First Solar's shares up by 7.16% at $267.7 during Friday's morning.

Delving into First Solar's Background

First Solar designs and manufactures solar photovoltaic panels, modules, and systems for use in utility-scale development projects. The company's solar modules use cadmium telluride to convert sunlight into electricity. This is commonly called thin-film technology. First Solar is the world's largest thin-film solar module manufacturer. It has production lines in Vietnam, Malaysia, the United States, and India.

Financial Insights: First Solar

Revenue Growth: Over the 3 months period, First Solar showcased positive performance, achieving a revenue growth rate of 15.58% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 43.33%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): First Solar's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 3.27.

Debt Management: First Solar's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 26.19 is lower than the industry average, implying a discounted valuation for First Solar's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 7.53 is lower than the industry average, implying a discounted valuation for First Solar's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 17.39, First Solar could be considered undervalued.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of First Solar's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.