Boston, MA 10/22/2013 (wallstreetpr) – The solar energy solutions company SolarCity Corp (NASDAQ:SCTY) appears to have run out of gas for any further run-up. This is coming when the company has been on gradual and sure rise, climbing up between 8% and 52% in the period of October 10 and Thursday October 17. Investors who took up this stock during the aforementioned duration are all smiles. However, a reversal could erode all those gains and now it seems time to get out has comes.
That pullback is becoming at SCTY can be clearly seen by the stock’s performance on Monday, October 21. The day witnessed a considerable drop in trading volume compared to the previous week, although the day’s volume still remained higher than the daily average. After climbing to $64.50 in the day, setting a new 52-week mark, SCTY toppled to settle down $57.52 after suffering 3.26%. The solar company now stands at $4.33 billion in market value.
That SCTY is on reversal gear doesn’t come as a popular idea, but analysts had long predicted that the stock’s surge wasn’t built to last, and indeed the beginning of this week has been sort of a pointer to that unsustainable climb. But SCTY’s bullish ride in the previous week was good enough for short-term trading.
Just before the unwinding began, JPMorgan issued an overweight rating on the stock, at a price objective of $68. The firm noted that SCTY appeared undervalued, highlighting several of its strengths but also pointing to the challenges. But it appears the market is reading bearish into the future of SCTY.
Generally, several rating agencies have recently issued sentiments on the stock; three analysts have issued a buy rating on the stock, while six have issued it a hold. On average, the stock has a consensus hold and consensus price target at $47.24 which is a definite downside from its current price of $57.52.
In its Q2.13 earnings, the solar energy company reported $0.43 EPS on 46.60 million in revenue. Analysts had expected $0.38 EPS on $ 27.44 million in revenue. The Q2.13 revenue indicated a dip from the comparable quarter last year.
