SolarCity Corp (SCTY) Shares Plunge in After Hours Following Poor Guidance

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While SolarCity Corp (NASDAQ:SCTY) reported better than expected earnings today after the market closed, it’s their forecasted panel installation figure which sent shares tumbling in after hours trading. While SolarCity Corp (NASDAQ:SCTY) installed a total of 272 megawatts of panels in the fourth quarter of last year, they only expect to install around 180 magawatts in the current quarter as they shift their focus from growth to becoming cash-flow positive. Their fourth quarter loss came in at $2.37 a share, beating expectations of a $2.58 loss, but the market seems more concerned with their lack of future growth potential.

Shares of Solar City are trading down $7.39 or 28.05% in the after hours after already dropping more than 5% on strong volume throughout the trading day today.The stock decreased 5.69% or $1.59 during the last trading session, hitting $26.35. About 6.24 million shares traded hands or 81.40% up from the average. SCTY has declined 46.01% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 37.14%.

From a total of 8 analysts covering SolarCity (NYSE:SCTY) stock, 4 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $93 while the lowest target price is $30. The mean of all analyst targets is $62.29 which is 136.39% above today’s ($26.35) stock price. SolarCity was the topic of 10 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Bernstein initiated shares on November 13 with a “Market Perform” rating. Stifel Nicolaus initiated shares with a”Buy” rating and a $64 target share price in their report from a September 24. Goldman Sachs downgraded SCTY stock in a recent report from October 30 to a “Neutral” rating. Morgan Stanley upgraded the rating on August 27. Morgan Stanley has a “Overweight” rating and a $93 price target on shares. Finally, Roth Capital maintained the stock with a “Buy” rating in a report they issued on an October 26.

The institutional sentiment decreased to 0.98 in Q2 2015. It’s down 0.40, from 1.38 in 2015Q2. The ratio is negative, as 46 funds sold all their SolarCity Corp shares they owned while 69 reduced their positions. 31 funds bought stakes while 82 increased their total positions. Institutions now own 52.19 million shares which is 0.67% less than the previous share count of 52.54 million in 2015Q2.

Founders Fund Iv Management Llc holds 100% of its total portfolio in SolarCity Corp, equating to 986,300 shares. Srs Investment Management Llc owns 8.02 million shares representing 11.35% of their total US portfolio. Moreover, Canyon Capital Advisors Llc has 5.22% of their total portfolio invested in the company, equating to 4.45 million shares. The United Kingdom-based Rit Capital Partners Plc has a total of 3.79% of their portfolio invested in the stock. Passport Capital Llc, a California-based fund reported 3.68 million shares owned.

Since March 9, 2015, the stock had 0 buys, and 4 insider sales for a total of $1.21 million in net activity. Buss Brad W sold 10,645 shares worth $512,377. Weissman Seth R sold 1,938 shares worth $92,037. Serra Tanguy sold 5,399 shares worth $258,358. Barnard Hayden sold 7,206 shares worth $344,171. The insider Pfund Nancy E sold 12,500 shares worth $750,200.

SolarCity Corporation sells renewable energy. The company has a market cap of $2.43 billion. The Firm integrates the sales, engineering, installation, monitoring, maintenance and financing of its distributed solar energy systems. It currently has negative earnings. It offers long-term energy solutions to residential, commercial and government customers.

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