FSLR Should I Buy
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First Solar Inc (FSLR) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment at this moment. While the company has shown strong revenue and net income growth in its latest quarter, the stock faces significant headwinds such as insider selling, legal investigations, and competition concerns from Tesla's solar manufacturing plans. Additionally, technical indicators do not suggest a strong entry point, and there are no proprietary trading signals to support a buy decision. A hold is recommended until clearer positive catalysts emerge or the stock stabilizes.
The MACD is negatively expanding (-0.595), RSI is neutral at 35.936, and moving averages are converging, indicating no clear trend. The stock is trading below the pivot level of 229.909, with support at 217.698 and resistance at 242.12. Overall, the technical indicators suggest a bearish or neutral trend.
Strong revenue growth of 79.67% YoY and net income growth of 45.69% YoY in Q3
Analysts from RBC Capital and Wells Fargo maintain an Outperform rating, citing cost competitiveness and limited impact from Tesla's plans.
Upcoming earnings report on February 24, 2026, could provide further clarity on the company's performance.
Insider selling has increased significantly by 49060.29% over the last month.
Legal investigations by Pomerantz LLP for potential securities fraud and unlawful practices.
Tesla's announcement of 100 GW solar manufacturing capacity in the U.S. has created competition concerns, despite analysts downplaying its immediate impact.
Downgrades from BMO Capital and Jefferies, citing competition risks and margin compression.
In Q3 2025, First Solar reported revenue of $1.59 billion, up 79.67% YoY, and net income of $455.94 million, up 45.69% YoY. EPS increased by 45.70% to 4.24. However, gross margin dropped to 38.29%, down 23.68% YoY, indicating potential cost pressures.
Analyst sentiment is mixed. RBC Capital and Wells Fargo maintain Outperform ratings, citing cost competitiveness and limited impact from Tesla's plans. However, BMO Capital downgraded the stock to Market Perform due to competition concerns, and Jefferies downgraded it to Hold, citing lowered guidance and margin compression. Recent price targets range from $258 to $326, with some analysts reducing targets due to competition concerns.
