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

Key Points

• Shares gapped down: SolarEdge opened at $40.51 versus the prior close of $42.98 and was trading around $40.58 on high volume, with the report noting an intraday decline of about 9%.
• Analyst consensus is weak: MarketBeat shows an average rating of "Reduce" with an average target price of $29.59 (1 Buy, 17 Hold, 7 Sell), even as several brokers recently adjusted price targets in the low $30s–$40s range.
• Negative fundamentals: The company reported last-quarter EPS of ($0.14) on $333.8M revenue, a negative net margin of 34.23% and negative ROE, and analysts expect -4.54 EPS for the current year; market cap is about $2.36B and institutional ownership is ~95.1%.

SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $42.98, but opened at $40.51. SolarEdge Technologies shares last traded at $40.5760, with a volume of 984,630 shares.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SEDG. Wells Fargo & Company upped their price target on shares of SolarEdge Technologies from $33.00 to $36.00 and gave the stock an "equal weight" rating in a report on Friday, February 20th. Morgan Stanley upped their price target on shares of SolarEdge Technologies from $33.00 to $40.00 and gave the stock an "equal weight" rating in a report on Thursday, February 19th. Deutsche Bank Aktiengesellschaft upped their price target on shares of SolarEdge Technologies from $33.00 to $42.00 and gave the stock a "hold" rating in a report on Thursday, April 9th. Citigroup lowered their price target on shares of SolarEdge Technologies from $30.00 to $29.00 and set a "sell" rating for the company in a report on Thursday, December 18th. Finally, Raymond James Financial began coverage on shares of SolarEdge Technologies in a report on Tuesday, January 13th. They set a "market perform" rating for the company. One investment analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and seven have given a Sell rating to the stock. Based on data from MarketBeat, SolarEdge Technologies presently has an average rating of "Reduce" and an average target price of $29.59.

SolarEdge Technologies Stock Down 9.1%

The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of -5.68 and a beta of 1.35. The stock has a fifty day moving average of $41.11 and a two-hundred day moving average of $36.73. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.17 and a quick ratio of 1.48.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported ($0.14) earnings per share for the quarter. The company had revenue of $333.80 million during the quarter. SolarEdge Technologies had a negative net margin of 34.23% and a negative return on equity of 45.54%. Sell-side analysts anticipate that SolarEdge Technologies, Inc. will post -4.54 earnings per share for the current year.

Institutional Trading of SolarEdge Technologies

Institutional investors and hedge funds have recently bought and sold shares of the stock. Public Sector Pension Investment Board boosted its position in SolarEdge Technologies by 15.0% during the third quarter. Public Sector Pension Investment Board now owns 231,604 shares of the semiconductor company's stock valued at $8,569,000 after acquiring an additional 30,264 shares during the last quarter. Convergence Investment Partners LLC bought a new stake in SolarEdge Technologies during the third quarter valued at $3,033,000. SG Americas Securities LLC boosted its position in SolarEdge Technologies by 59.7% during the third quarter. SG Americas Securities LLC now owns 103,033 shares of the semiconductor company's stock valued at $3,812,000 after acquiring an additional 38,511 shares during the last quarter. Aquatic Capital Management LLC boosted its position in SolarEdge Technologies by 1,282.8% during the third quarter. Aquatic Capital Management LLC now owns 125,473 shares of the semiconductor company's stock valued at $4,643,000 after acquiring an additional 116,399 shares during the last quarter. Finally, PGGM Investments bought a new stake in SolarEdge Technologies during the third quarter valued at $24,438,000. 95.10% of the stock is currently owned by institutional investors and hedge funds.

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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