SolarEdge Technologies (NASDAQ:SEDG) Shares Down 4.5% After Analyst Downgrade

Key Points

• SolarEdge shares fell 4.5% after TD Cowen cut its price target from $85 to $75, even though the firm kept a buy rating. The stock traded as low as $49.68 during the session.
• Analyst sentiment remains cautious overall: the consensus rating is "Reduce", with 1 Buy, 13 Hold, and 6 Sell ratings. The average price target across analysts is $38.06.
• SolarEdge recently reported weaker-than-expected earnings, posting a loss of $0.43 per share versus an expected loss of $0.23, though revenue of $309.9 million slightly beat estimates and rose 41.5% year over year.

Shares of SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report) fell 4.5% on Monday after TD Cowen lowered their price target on the stock from $85.00 to $75.00. TD Cowen currently has a buy rating on the stock. SolarEdge Technologies traded as low as $49.68 and last traded at $51.0830. 292,892 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 3,464,876 shares. The stock had previously closed at $53.47.

A number of other equities research analysts also recently issued reports on SEDG. The Goldman Sachs Group reiterated a "sell" rating and set a $31.00 price target (down from $36.00) on shares of SolarEdge Technologies in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of SolarEdge Technologies from $42.00 to $39.00 and set a "hold" rating for the company in a report on Thursday, May 7th. Weiss Ratings raised SolarEdge Technologies from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, June 24th. Barclays lifted their price objective on SolarEdge Technologies from $41.00 to $53.00 and gave the company an "equal weight" rating in a research report on Friday, July 10th. Finally, JPMorgan Chase & Co. raised their price target on SolarEdge Technologies from $32.00 to $35.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $38.06.

Insider Activity

In other news, Chairman More Avery sold 2,566 shares of the company's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $38.76, for a total transaction of $99,458.16. Following the completion of the sale, the chairman directly owned 295,379 shares in the company, valued at $11,448,890.04. This represents a 0.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.04% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SolarEdge Technologies

A number of institutional investors have recently added to or reduced their stakes in the company. UBS Group AG increased its stake in SolarEdge Technologies by 18.5% during the fourth quarter. UBS Group AG now owns 4,210,429 shares of the semiconductor company's stock worth $121,471,000 after acquiring an additional 655,925 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of SolarEdge Technologies by 5.5% during the 4th quarter. Vanguard Group Inc. now owns 3,368,073 shares of the semiconductor company's stock worth $97,169,000 after purchasing an additional 175,582 shares during the period. Invesco Ltd. increased its position in SolarEdge Technologies by 28.6% during the 4th quarter. Invesco Ltd. now owns 2,169,822 shares of the semiconductor company's stock worth $62,599,000 after purchasing an additional 483,052 shares in the last quarter. Electron Capital Partners LLC raised its holdings in SolarEdge Technologies by 107.8% in the third quarter. Electron Capital Partners LLC now owns 1,732,566 shares of the semiconductor company's stock valued at $64,105,000 after buying an additional 898,802 shares during the period. Finally, Artisan Partners Limited Partnership lifted its position in SolarEdge Technologies by 13.5% during the fourth quarter. Artisan Partners Limited Partnership now owns 1,309,579 shares of the semiconductor company's stock valued at $37,781,000 after buying an additional 155,624 shares in the last quarter. Hedge funds and other institutional investors own 95.10% of the company's stock.

SolarEdge Technologies Trading Down 6.3%

The company has a debt-to-equity ratio of 0.85, a current ratio of 2.02 and a quick ratio of 1.36. The business's 50-day simple moving average is $58.20 and its two-hundred day simple moving average is $45.66. The stock has a market capitalization of $3.05 billion, a price-to-earnings ratio of -8.18 and a beta of 1.45.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The semiconductor company reported ($0.43) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.23) by ($0.20). The business had revenue of $309.90 million during the quarter, compared to analyst estimates of $305.49 million. SolarEdge Technologies had a negative return on equity of 38.66% and a negative net margin of 28.56%.SolarEdge Technologies's revenue was up 41.5% on a year-over-year basis. During the same period in the previous year, the company earned ($1.14) EPS. On average, research analysts anticipate that SolarEdge Technologies, Inc. will post -1.1 earnings per share for the current fiscal year.

About SolarEdge Technologies

SolarEdge Technologies NASDAQ: SEDG is a global provider of solar energy solutions focused on optimizing photovoltaic (PV) power generation. The company's core offerings include power optimizers, inverters and cloud-based monitoring platforms designed to maximize energy output and improve safety across residential, commercial and utility-scale installations. By coupling module-level electronics with centralized inverters, SolarEdge's technology enables real-time performance monitoring and rapid fault detection to enhance system reliability.

In recent years, SolarEdge has expanded its product portfolio beyond solar PV to include energy storage systems, electric vehicle (EV) charging solutions and smart energy management tools.

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