Canadian Solar Inc. (CSIQ) Dives After Triple Whammy Of Bad News, Including Profit Decline, Spinoff Doubts

Apart from the lower guidance and the doubts about the planned spinoff, Canadian Solar Inc. (NASDAQ:CSIQ) saw a decrease of hedge fund support in the second quarter, with 31 hedge funds long in the stock by the end of June, down by four from the previous quarter. This decrease also reflects the 22.37% drop in hedge fund holdings from the previous quarter, to $235.49 million. The stock declined by 14.35% in the second quarter, but this does not account for the entire decrease in hedge funds’ holdings in the quarter. The loss of interest from the smart money comes after a 176.41% surge in holdings in the first quarter. Nonetheless, nearly 15% of the company’s shares are still owned by hedge funds we track.

Israel Englander’s Millennium Management remained the institution with the largest position in Canadian Solar Inc. (NASDAQ:CSIQ) in the second quarter, increasing its stake by 47% to 2.12 million shares worth about $60.58 million. Meanwhile, the most bearish hedge fund in the second quarter among the over 700 we track was Donald Chiboucis’ Columbus Circle Investors, which divested almost 1.6 million shares from April to June, retaining just 1.02 million shares. Because of the negative news from Canadian Solar Inc. (NASDAQ:CSIQ) and the lukewarm treatment of the stock by hedge funds in the second quarter, we recommend staying away from the stock at the moment.

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