Vivint Solar, Inc. (VSLR): Charged Up Insiders Buy Shares

Vivint Solar, Inc. (NYSE:VSLR) is now being followed by Citigroup, as they initiated the stock at Neutral on January 07. Analysts at JMP Securities, shed their negative views on August 08 by lifting it fromMkt Perform to Mkt Outperform. The stock won favor of Guggenheim analysts who expressed their confidence in it using an upgrade from Neutral to Buy on June 22. Guggenheim analysts came out with bearish views on January 18 when the call was made. They think the stock is now Neutral compared to to their prior call for Buy.

VSLR stock rose 1% in recent trade and currently has a stock-market value of $609.43M. The shares finished at $5.06, after trading as low as $4.91 earlier in the session. It hit an intraday high Thursday at $5.28. Trading activity significantly improved as the volume at ready counter increased to 946,420 shares versus 741,870 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 706,320 shares. The stock is now 63.23% above against its bear-market low of $3.1 on March 15, 2018. It has retreated -47.04% since it’s 52-week high of $7.44 reached in November. Now the market price is up 55.69% on the year and up 32.81% YTD.

Wall Street’s most bullish Vivint Solar, Inc. (NYSE:VSLR) analysts are predicting the share price to blow past $12 per share during the next 12 months. The current median share price forecast by them is $8, suggesting that the stock could increase 58.1% in that time frame. The average price target of $8.15 calls for a nearly 61.07% increase in the stock price.

Vivint Solar, Inc. (VSLR)’s 50 day simple moving average (SMA 50) price is $4.51 and its 200-day simple moving average (SMA 200) price is $4.96. The company’s stock currently has a total float of 116.79M shares. Its weekly volatility is hovering around 5.84% and felt 4.96% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.26. On a downside, the stock is likely to find some support, which begins at $4.89. The failure to get near-term support could push it to $4.71.

Also, it is trading at rather expensive levels at just over 2.1x price/book and 2.1x price/sales. Compared to others, Vivint Solar, Inc. is in a different league with regards to profitability, having net margins of -5.4%. To put some perspective around this, the industry’s average net margin is 25.62%. VSLR’s ROE is -5.2%, which is also considerably worse than the industry’s ROE of 16.29%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 4.22.

VSLR last reported earnings that receded expectations. The company raked in -$0.11 per share, -100.07% change on the same period last year. That was worse than consensus for $0.18. Revenue for the recent quarter stood at $63.46 million, down -5% on last year and below the $71.94 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $61.22 million to $85.43 million, which should be compared with $88 million generated last year. EPS is seen in a range of -$0.31 to $0.22, against the $0.42 reported a year ago.