What Should You Infer from ReneSola’s Insider Trades?
Stock Analysis & Ideas

What Should You Infer from ReneSola’s Insider Trades?

Story Highlights

One of ReneSola’s large shareholders bought its stock. The company’s project sales are expected to ramp up.

With policies around the world favoring the adoption of renewables, the prospects for solar companies appear bright. However, that is not reflected in the share price performance of ReneSola Power (NYSE: SOL), a leading solar project operator and developer. 

SOL stock has lost over 23% of its value this year. Moreover, it has fallen about 42% in one year. 

While SOL has trended lower, one of its largest shareholders, Shah Capital, has been accumulating its stock. 

According to its latest SEC filing and TipRanks’ Insider Trading Activity tool, Shah Capital, which owns more than a 10% stake in the company, acquired SOL shares worth $4.7 million this month. Earlier, SOL appointed Himanshu H. Shah, the founder and CIO of Shah Capital, as a director. 

The move comes as SOL expects its project sales to ramp up as the year progresses, which will support its overall revenues. In a letter to its shareholders, SOL reiterated its full-year revenue outlook of $100 to $120 million. 

Notably, SOL delivered revenues of $3.5 million in Q1. However, the company remains upbeat and expects revenues to accelerate in the second half of the year.

In response to its guidance, H.C. Wainwright analyst Amit Dayal stated, “In addition to providing the $13-16M revenue guidance for 2Q22, management indicated that 3Q22 revenues are likely to be approximately $20M. This implies that 4Q22 revenues are expected to be $60-83M.” 

Dayal mentioned that management is confident of achieving its revenue targets as most of its development projects are small, which would take lower construction time. 

The analyst is bullish on SOL stock and highlighted the company’s strong balance sheet and share buybacks. Moreover, his price target of $12 represents 162% upside. 

Bottom Line

The ramp-up in project sales, sequential improvement in the top line, a large shareholder accumulating its stock, and favorable sector tailwinds bode well for growth.



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