The short interest in Vivint Solar Inc (NYSE: VSLR) rose by a double-digit percentage between the November 28 and December 15 settlement dates.
Among the other leading U.S. solar-related stocks, First Solar, Inc. (NASDAQ: FSLR) and SolarCity Corp (NASDAQ: SCTY) also saw a bump in the number of their shares short in the period.
First Solar
Short interest in this Tempe, Arizona-based company grew almost 6 percent, reversing three periods of decline, to land on 8.94 million on December 15. The number of shares sold short represents more than 12 percent of the float. The days to cover rose to four for the first time since September.
During the period, First Solar teamed up with the Clean Energy Collective to develop and build community solar projects. First Solar has a market capitalization of more than $4 billion. Note that its return on equity is less than 9 percent, but the operating margin is better than the industry average.
The consensus recommendation of the analysts polled by Thomson/First Call is to hold First Solar shares, and that has been the case for at least three months. Yet, the analysts' mean price target, or where they expect the share price to go, is more than 26 percent higher than the current share price.
The share price fell more than 14 percent during the two-week short interest period, part of a sell-off that began back in September, but it may have found a bottom in mid-December. The stock has underperformed not only the likes of Linear Technology and Sharp over the past six months, but the S&P 500 as well.
See also: Deutsche Bank Says Solar's Link To Oil Is Overblown
SolarCity
Short interest in this provider of solar energy systems to residential and commercial customers saw a gain of more than 7 percent to around 18.64 million shares. That was the highest number of shares short in the past year, and it represents about 33 percent of the float. The days to cover remained more than seven.
During the period, this San Mateo, California-based company set a financing deal with Bank of America to fund solar power projects through 2015. SolarCity has a market cap of more than $5 billion. Note that both the return on equity and the operating margin remain in negative territory.
Nine of the 11 surveyed analysts recommended buying shares, and none rated the stock at Underperform. A move to the analysts' mean price target would be a whopping 34 percent gain for the shares. However, that consensus target is less than the 52-week high reached back in February.
Short sellers watched the share price retreat less than 10 percent during the two-week period but then rise about 15 percent since then, climbing well about the 50-day moving average. The stock may have underperformed the Nasdaq and the S&P 500 in the past six months, but it outperformed smaller competitor RGS Energy.