SolarEdge Technologies (NASDAQ:SEDG) Sees Strong Trading Volume After Better-Than-Expected Earnings

Key Points

• SolarEdge reported quarterly EPS of $0.29, beating the $0.04 consensus estimate; revenue of $325.4 million narrowly missed expectations and fell 4.2% year over year.
• Trading volume rose 6% above its daily average after the earnings announcement. Shares last traded at $31.59, below the previous close of $32.88.
• Analyst sentiment remains cautious: the consensus rating is “Reduce,” with a $38.53 target price; 11 analysts rate the stock Hold and five rate it Sell.

Shares of SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report) saw strong trading volume on Wednesday after the company announced better than expected quarterly earnings. 3,536,810 shares changed hands during trading, an increase of 6% from the average daily volume of 3,328,520 shares. The stock last traded at $31.5860 and had previously closed at $32.88.

The semiconductor company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.25. SolarEdge Technologies had a negative net margin of 20.29% and a negative return on equity of 29.17%. The company had revenue of $325.40 million for the quarter, compared to the consensus estimate of $326.78 million. During the same quarter in the previous year, the firm earned ($0.31) EPS. SolarEdge Technologies's revenue was down 4.2% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on SEDG. Mizuho upped their price objective on shares of SolarEdge Technologies from $38.00 to $40.00 and gave the company a "neutral" rating in a research note on Friday, September 11th. JPMorgan Chase & Co. decreased their target price on shares of SolarEdge Technologies from $44.00 to $38.00 and set a "neutral" rating on the stock in a research note on Monday, October 19th. The Goldman Sachs Group lowered their target price on SolarEdge Technologies from $34.00 to $30.00 and set a "sell" rating on the stock in a report on Thursday, August 6th. Barclays lowered their target price on SolarEdge Technologies from $37.00 to $36.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 7th. Finally, Morgan Stanley dropped their price target on SolarEdge Technologies from $35.00 to $33.00 and set an "equal weight" rating for the company in a research report on Friday, September 11th. Two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $38.53.

Institutional Trading of SolarEdge Technologies

A number of large investors have recently bought and sold shares of SEDG. Legal & General Group Plc acquired a new position in SolarEdge Technologies during the second quarter valued at approximately $76,095,000. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of SolarEdge Technologies in the second quarter worth $55,514,000. Meitav Investment House Ltd. increased its position in shares of SolarEdge Technologies by 541.6% in the first quarter. Meitav Investment House Ltd. now owns 1,017,551 shares of the semiconductor company's stock worth $51,946,000 after acquiring an additional 858,954 shares in the last quarter. Bank of America Corp DE raised its stake in shares of SolarEdge Technologies by 218.6% in the 1st quarter. Bank of America Corp DE now owns 404,297 shares of the semiconductor company's stock valued at $20,639,000 after acquiring an additional 277,385 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in shares of SolarEdge Technologies by 303.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 314,066 shares of the semiconductor company's stock valued at $16,031,000 after acquiring an additional 236,176 shares during the period. Institutional investors and hedge funds own 95.10% of the company's stock.

SolarEdge Technologies Price Performance

The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.38 and a current ratio of 2.03. The firm has a market cap of $1.95 billion, a price-to-earnings ratio of -7.05 and a beta of 1.31. The company's fifty day moving average is $32.91 and its two-hundred day moving average is $42.20.

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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