JPMorgan Chase & Co. Has Lowered Expectations for SolarEdge Technologies (NASDAQ:SEDG) Stock Price

Key Points

• JPMorgan lowered SolarEdge Technologies’ price target from $44 to $38 while maintaining a “neutral” rating, implying roughly 22% upside from the stock’s reported $31.06 price.
• Analyst sentiment remains cautious: two analysts rate the stock Buy, 11 Hold, and five Sell, resulting in a consensus “Reduce” rating and an average price target of $38.33.
• SolarEdge shares fell 1% to $31.06 and remain well below their 52-week high of $81.25, while the company reported better-than-expected quarterly revenue and earnings but continues to post negative margins and is expected to record a full-year loss.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) had its price target lowered by investment analysts at JPMorgan Chase & Co. from $44.00 to $38.00 in a report issued on Monday, Benzinga reports. The firm presently has a "neutral" rating on the semiconductor company's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 22.34% from the company's current price.

Several other brokerages have also recently issued reports on SEDG. Mizuho upped their target price on shares of SolarEdge Technologies from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, September 11th. The Goldman Sachs Group cut their price target on shares of SolarEdge Technologies from $34.00 to $30.00 and set a "sell" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings raised shares of SolarEdge Technologies from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, October 2nd. Morgan Stanley decreased their price objective on shares of SolarEdge Technologies from $35.00 to $33.00 and set an "equal weight" rating for the company in a research note on Friday, September 11th. Finally, Susquehanna decreased their price objective on shares of SolarEdge Technologies from $38.00 to $32.00 and set a "neutral" rating for the company in a research note on Wednesday, October 14th. Two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $38.33.

SolarEdge Technologies Stock Down 1.0%

SEDG stock traded down $0.30 during trading on Monday, hitting $31.06. 2,323,074 shares of the company's stock were exchanged, compared to its average volume of 3,391,267. The business has a 50-day moving average price of $32.94 and a two-hundred day moving average price of $44.82. The stock has a market capitalization of $1.91 billion, a price-to-earnings ratio of -6.90 and a beta of 1.44. SolarEdge Technologies has a 52-week low of $28.21 and a 52-week high of $81.25. The company has a current ratio of 2.03, a quick ratio of 1.38 and a debt-to-equity ratio of 0.85.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.05 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.07. SolarEdge Technologies had a negative net margin of 20.29% and a negative return on equity of 29.17%. The company had revenue of $346.20 million for the quarter, compared to analyst estimates of $341.15 million. During the same period in the prior year, the firm posted ($0.81) earnings per share. The firm's revenue was up 19.6% on a year-over-year basis. As a group, equities research analysts expect that SolarEdge Technologies will post -1.20 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. State Street Corp lifted its holdings in shares of SolarEdge Technologies by 0.7% during the second quarter. State Street Corp now owns 1,761,901 shares of the semiconductor company's stock worth $102,965,000 after purchasing an additional 12,188 shares during the period. Legal & General Group Plc purchased a new position in SolarEdge Technologies in the 2nd quarter valued at $76,095,000. Handelsbanken Fonder AB grew its position in SolarEdge Technologies by 16.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 1,230,401 shares of the semiconductor company's stock valued at $71,905,000 after buying an additional 175,281 shares during the last quarter. Meitav Investment House Ltd. grew its position in SolarEdge Technologies by 541.6% in the 1st quarter. Meitav Investment House Ltd. now owns 1,017,551 shares of the semiconductor company's stock valued at $51,946,000 after buying an additional 858,954 shares during the last quarter. Finally, Clal Insurance Enterprises Holdings Ltd acquired a new position in SolarEdge Technologies in the 2nd quarter valued at $55,514,000. 95.10% of the stock is currently owned by institutional investors and hedge funds.

About SolarEdge Technologies

SolarEdge Technologies, Inc NASDAQ: SEDG develops technologies for generating, storing and managing solar energy. The company is best known for its power optimizer and inverter architecture, which is designed to improve energy harvesting from photovoltaic panels and provide monitoring and control at the module level.

Its product portfolio includes power optimizers, residential and commercial inverters, battery-storage systems, backup-power solutions, electric-vehicle charging equipment and energy-management software.

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