The Goldman Sachs Group Issues Pessimistic Forecast for SolarEdge Technologies (NASDAQ:SEDG) Stock Price

Key Points

• Goldman Sachs cut its SolarEdge price target from $29 to $25 and maintained a “sell” rating, implying 2.66% downside from the share price cited in the report.
• SolarEdge shares fell 14.5% to $25.68, near their 52-week low of $25.25, despite reporting quarterly EPS of $0.29—above the $0.04 analyst estimate.
• The earnings beat was tempered by revenue declining 4.2% year over year and a weaker fourth-quarter revenue outlook; analysts overall rated the stock “Reduce.”

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) had its price objective lowered by analysts at The Goldman Sachs Group from $29.00 to $25.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has a "sell" rating on the semiconductor company's stock. The Goldman Sachs Group's price objective suggests a potential downside of 2.66% from the stock's current price.

SEDG has been the subject of a number of other reports. UBS Group upgraded shares of SolarEdge Technologies from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $36.00 to $42.00 in a research note on Wednesday, August 26th. Susquehanna dropped their target price on shares of SolarEdge Technologies from $32.00 to $31.00 and set a "neutral" rating on the stock in a report on Thursday. Citigroup boosted their target price on shares of SolarEdge Technologies from $25.00 to $30.00 and gave the stock a "sell" rating in a research report on Monday, September 21st. Mizuho upped their price target 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. Finally, Barclays lowered their price target on SolarEdge Technologies from $37.00 to $36.00 and set an "equal weight" rating on the stock in a research report on Wednesday, October 7th. Two analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, SolarEdge Technologies presently has a consensus rating of "Reduce" and a consensus price target of $38.13.

SolarEdge Technologies Stock Down 14.5%

Shares of SEDG traded down $4.34 during trading hours on Thursday, hitting $25.68. 4,006,420 shares of the company were exchanged, compared to its average volume of 3,362,225. The firm's 50 day moving average is $32.91 and its 200-day moving average is $42.18. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.38 and a current ratio of 2.03. SolarEdge Technologies has a 52 week low of $25.25 and a 52 week high of $81.25. The company has a market cap of $1.58 billion, a PE ratio of -5.65 and a beta of 1.31.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last posted its earnings results on Wednesday, November 4th. The semiconductor company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.25. The firm had revenue of $325.40 million during the quarter, compared to analyst estimates of $326.78 million. SolarEdge Technologies had a negative return on equity of 29.17% and a negative net margin of 20.29%. The company's revenue for the quarter was down 4.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.31) EPS. On average, equities research analysts forecast that SolarEdge Technologies will post -1.21 EPS for the current fiscal year.

Institutional Investors Weigh In On SolarEdge Technologies

Several institutional investors have recently modified their holdings of SEDG. Ethic Inc. acquired a new position in SolarEdge Technologies during the third quarter worth approximately $220,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of SolarEdge Technologies during the 3rd quarter worth about $1,912,000. Counterpoint Mutual Funds LLC lifted its stake in shares of SolarEdge Technologies by 22.1% during the 3rd quarter. Counterpoint Mutual Funds LLC now owns 22,526 shares of the semiconductor company's stock worth $718,000 after buying an additional 4,083 shares during the last quarter. Vontobel Holding Ltd. boosted its holdings in shares of SolarEdge Technologies by 250.1% during the 3rd quarter. Vontobel Holding Ltd. now owns 26,921 shares of the semiconductor company's stock worth $858,000 after buying an additional 19,231 shares during the period. Finally, Farther Finance Advisors LLC grew its stake in SolarEdge Technologies by 18.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 3,045 shares of the semiconductor company's stock valued at $97,000 after buying an additional 479 shares during the last quarter. Institutional investors and hedge funds own 95.10% of the company's stock.

SolarEdge Technologies News Roundup

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: SolarEdge reported third-quarter earnings of $0.29 per share, above analyst estimates, and said revenue of about $326 million was in line with its guidance. Analysts also cited improved gross margins and positive cash flow. SolarEdge Q3 results
• Negative Sentiment: The company’s fourth-quarter outlook points to reduced revenue expectations amid persistent demand challenges. Third-quarter revenue was down 4.2% year over year and slightly below consensus, tempering the earnings beat. Q3 earnings and outlook
• Negative Sentiment: Susquehanna lowered its price target from $32 to $31 while maintaining a neutral rating, signaling limited analyst conviction despite the target remaining above the recent share price. Susquehanna ratings
• Negative Sentiment: Solar stocks broadly rallied after Democrats won control of Congress, but SolarEdge bucked the sector move, suggesting company-specific concerns outweighed improved clean-energy sentiment. Solar stocks and election reaction

SolarEdge Technologies Company Profile

SolarEdge Technologies, Inc NASDAQ: SEDG develops technologies for solar energy generation, storage and management. Its core products include power optimizers, solar inverters and monitoring systems designed to improve the performance, visibility and safety of photovoltaic installations.

The company also offers complementary smart-energy solutions, including battery storage, electric-vehicle charging equipment, energy-management software and related products for residential, commercial and industrial customers.

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