The entire solar energy sector is up big in pre-market trading this morning, particularly SolarCity Corp (NASDAQ:SCTY). The optimism comes from news this morning that a ‘sweeping bill’ has been introduced to the U.S. Congress to extend the solar Investment Tx Credit an additional 5 years, through the year 2020, while leaving that credit at 30%. The credit will then be reduced gradually thereafter to 26% in 2021, 22% in 2022, and 10% thereafter.
Shares of SolarCity Corp (NASDAQ:SCTY) are trading up over 10% in the pre-market as investors clearly like what they are seeing. The stock decreased 3.70% or $1.54 during the last trading session, hitting $40.05. Approximately 58,009 shares traded hands. SCTY shares have declined 35.07% since May 13, 2015 and are currently downtrending. It has underperformed the S&P500 by 31.39%.
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 55.53% above today’s ($40.05) 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 dropped, 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 insider purchases, and 7 sales for a total of $3.07 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 $4.06 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.