Here's Why Shares of First Solar Sank 21% in March
Extending the 18% slide that they had experienced through the first two months of 2020, shares of First Solar (NASDAQ: FSLR) dropped 21% in March, according to data from S&P Global Market Intelligence, representing a more precipitous drop than the 12.5% downturn that the S&P 500 had suffered. An analyst's critical commentary, concerns about local and state stay-at-home mandates, and doubts regarding how the government's stimulus package would provide relief to the solar industry all weighed heavily on investors' minds and contributed to them exiting their positions last month.
The month began on an inauspicious note for shareholders. On March 2, Gordon Johnson, an analyst with GLJ Research, shared his doubts regarding the company's financial footing, stating in a letter to investors that "the time is fast approaching to begin worrying about First Solar's quickly dwindling cash balance," according to thefly.com. Regarding the stock, he maintained a hold rating and $40 price target, indicating a bearish outlook as the stock was trading around $45 at the time of the note.
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Source Fool.com
