SolarEdge Technologies (NASDAQ:SEDG) Shares Gap Down - Here's What Happened

Key Points

• SolarEdge shares plunged 22.5%, opening at $39.94 versus the prior close of $48.76 and later trading near $38.17 on volume of 3.66 million shares.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with one Buy, 12 Holds and six Sells, and an average price target of $38.93.
• SolarEdge’s latest quarterly results modestly exceeded expectations, with adjusted EPS of $0.05 versus a projected loss of $0.02 and revenue of $345.5 million, up 19.6% year over year; however, the company continues to report negative net margins and return on equity.

SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $48.76, but opened at $39.94. SolarEdge Technologies shares last traded at $38.17, with a volume of 3,660,410 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on SEDG shares. JPMorgan Chase & Co. increased their price target on shares of SolarEdge Technologies from $32.00 to $35.00 and gave the company a "neutral" rating in a report on Thursday, April 16th. Citigroup decreased their price objective on shares of SolarEdge Technologies from $30.00 to $27.00 and set a "sell" rating on the stock in a report on Thursday, May 7th. Barclays upped their target price on shares of SolarEdge Technologies from $41.00 to $53.00 and gave the stock an "equal weight" rating in a research report on Friday, July 10th. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $31.00 target price (down from $36.00) on shares of SolarEdge Technologies in a report on Wednesday, April 15th. Finally, Susquehanna boosted their price target on SolarEdge Technologies from $43.00 to $56.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat.com, SolarEdge Technologies presently has an average rating of "Reduce" and a consensus price target of $38.93.

SolarEdge Technologies Trading Down 22.5%

The company has a quick ratio of 1.36, a current ratio of 2.02 and a debt-to-equity ratio of 0.85. The firm has a market cap of $2.30 billion, a price-to-earnings ratio of -6.16 and a beta of 1.49. The business has a 50 day moving average of $55.66 and a 200 day moving average of $46.76.

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 analysts' consensus estimates of ($0.02) by $0.07. The firm had revenue of $345.50 million during the quarter, compared to analysts' expectations of $341.15 million. SolarEdge Technologies had a negative return on equity of 38.66% and a negative net margin of 28.56%.The firm's quarterly revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the business posted ($0.81) EPS. On average, research analysts forecast that SolarEdge Technologies, Inc. will post -1.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other SolarEdge Technologies news, Chairman More Avery sold 2,566 shares of the firm's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $38.76, for a total value of $99,458.16. Following the sale, the chairman directly owned 295,379 shares of the company's stock, valued at approximately $11,448,890.04. This trade represents a 0.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.04% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SEDG. Handelsbanken Fonder AB grew its holdings in shares of SolarEdge Technologies by 28.6% during the fourth quarter. Handelsbanken Fonder AB now owns 846,148 shares of the semiconductor company's stock valued at $24,411,000 after buying an additional 188,086 shares in the last quarter. Vanguard Group Inc. lifted its stake in SolarEdge Technologies by 5.5% in the 4th quarter. Vanguard Group Inc. now owns 3,368,073 shares of the semiconductor company's stock worth $97,169,000 after acquiring an additional 175,582 shares in the last quarter. UBS Group AG lifted its stake in SolarEdge Technologies by 18.5% in the 4th 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 in the last quarter. ING Groep NV acquired a new stake in SolarEdge Technologies during the 4th quarter worth about $13,848,000. Finally, Kingsview Wealth Management LLC acquired a new stake in SolarEdge Technologies during the 4th quarter worth about $957,000. 95.10% of the stock is currently owned by hedge funds and other institutional investors.

SolarEdge Technologies Company Profile

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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