JA Solar’s stock price movement
The extension of ITCs (investment tax credits) beyond 2016 in the United States gave a boost to solar (TAN) stocks at the end of 2015. But the momentum didn’t continue in 2016.
Uncertainty surrounding the Fed’s interest rate hike and the recovery of oil prices had a negative impact on solar stocks in 1Q16. Major solar players such as SunPower hit new lows in February 2016. Persistently low natural gas prices also had an indirect impact on these stocks in the first half of the year.
After 1Q16, the recovery in commodity prices and resolved regulatory issues surrounding net metering systems helped solar stocks recover from their February lows. However, the PV (photovoltaic) module supply glut in global markets is still a major concern for these companies in 2016.
JA Solar (JASO) stock fell nearly 39% from January 4, 2016, through September 22, 2016.
Below are some stock comparisons in the solar industry for January 4, 2016, through September 29, 2016:
- First Solar (FSLR): fell ~42%
- Canadian Solar (CSIQ): fell ~50%
- SunEdison (SUNEQ): fell ~99%
- Trina Solar (TSL): fell ~4%
- SunPower (SPWR): fell ~69%
In the next part, we’ll take a look at JA Solar’s fiscal 2016 guidance and outlook.