SolarEdge Technologies (NASDAQ:SEDG) Stock Falls 4.2% - Should You Sell?

Key Points

• SolarEdge shares fell 4.2% to about $30.06, with trading volume 77% below the average daily level.
• Analyst sentiment remains cautious: 11 analysts rate the stock Hold, five rate it Sell and two rate it Buy. The consensus rating is Reduce, with an average price target of $38.73.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.05 EPS and $346.2 million in revenue, but remains unprofitable with a negative net margin of 20.29%; institutional investors own 95.1% of the shares.

SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report) fell 4.2% on Monday. The stock traded as low as $30.11 and last traded at $30.0550. 776,347 shares were traded during trading, a decline of 77% from the average daily volume of 3,382,568 shares. The stock had previously closed at $31.36.

Analyst Upgrades and Downgrades

SEDG has been the subject of several analyst reports. Barclays reduced their price objective on SolarEdge Technologies from $37.00 to $36.00 and set an "equal weight" rating for the company in a research note on Wednesday, October 7th. Royal Bank Of Canada raised their price objective on SolarEdge Technologies from $24.00 to $30.00 and gave the company a "sector perform" rating in a research report on Friday, September 11th. Mizuho lifted their price objective on shares of SolarEdge Technologies from $38.00 to $40.00 and gave the stock a "neutral" rating in a research note on Friday, September 11th. Wall Street Zen upgraded SolarEdge Technologies from a "sell" rating to a "hold" rating in a research report on Sunday, October 11th. Finally, Wells Fargo & Company began coverage on SolarEdge Technologies in a report on Monday, June 29th. They issued an "equal weight" rating and a $36.00 price target on the stock. Two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $38.73.

SolarEdge Technologies Stock Performance

The company has a current ratio of 2.03, a quick ratio of 1.38 and a debt-to-equity ratio of 0.85. The company has a market cap of $1.90 billion, a PE ratio of -6.86 and a beta of 1.44. The firm's 50-day simple moving average is $32.94 and its two-hundred day simple moving average is $44.82.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The semiconductor company reported $0.05 EPS for the quarter, topping 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 business had revenue of $346.20 million during the quarter, compared to the consensus estimate of $341.15 million. During the same period in the previous year, the firm posted ($0.81) earnings per share. The business's revenue for the quarter was up 19.6% compared to the same quarter last year. As a group, research analysts anticipate that SolarEdge Technologies, Inc. will post -1.20 earnings per share for the current fiscal year.

Institutional Trading of SolarEdge Technologies

Hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp lifted its holdings in SolarEdge Technologies by 0.7% during the second quarter. State Street Corp now owns 1,761,901 shares of the semiconductor company's stock valued at $102,965,000 after purchasing an additional 12,188 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of SolarEdge Technologies during the 2nd quarter worth about $76,095,000. Handelsbanken Fonder AB lifted its stake 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 in the last quarter. Meitav Investment House Ltd. lifted its stake 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 in the last quarter. Finally, Clal Insurance Enterprises Holdings Ltd acquired a new stake in SolarEdge Technologies in the 2nd quarter worth about $55,514,000. Institutional investors and hedge funds own 95.10% of the company's stock.

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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