First Solar Plunges 6.99% on Institutional Selling and Political Risks $1.02 Billion Volume Ranks 61st

On August 21, 2025, First Solar (FSLR) fell 6.99% to $193.39, with a trading volume of $1.02 billion, ranking 61st in market activity. Institutional selling and political uncertainty weighed on the stock. DNB Asset Management AS reduced its holdings, while SG Americas Securities LLC added 7,858 shares, reflecting mixed institutional sentiment. Analyst activity was notable: BMO Capital maintained a "Market Perform" rating, and Deutsche Bank upgraded the stock to "Buy" earlier in the week, signaling divergent views on its near-term outlook.

The decline coincided with broader sector concerns linked to Trump-era energy policy shifts. First Solar’s CEO urged stricter U.S. trade policies amid falling module prices, while the company broke ground on a $1.1 billion Louisiana manufacturing facility, aiming to bolster domestic production. These moves highlight strategic efforts to counter industry challenges, though political risks remain a key headwind for the sector.

Analyst activity in late August showed a cautious stance. BMO Capital and Deutsche Bank upgrades contrasted with downgrades from Morgan Stanley and Wells Fargo, which tempered bullish momentum. Meanwhile, institutional investors like Duality Advisers LP and Granahan Investment Management increased stakes, underscoring long-term confidence in First Solar’s growth potential despite short-term volatility.

The backtested strategy of buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 6.98% compound annual growth rate, with a maximum drawdown of 15.59% recorded in mid-2023. While the approach showed steady returns, the drawdown emphasized the need for risk management in high-beta environments.