SolarEdge Technologies (NASDAQ:SEDG) Shares Down 5.8% - Should You Sell?

Key Points

• SolarEdge Technologies saw its share price decline by 5.8%, trading as low as $30.50, with a significant drop in trading volume compared to average levels.
• Analyst ratings for the company vary widely, with some upgrades pushing the price target up to $29.00, while others have downgraded it to a strong sell rating with a target of $6.90.
• Despite a recent earnings report hitting estimates, SolarEdge reported a negative net margin of 177.64% and anticipates posting a loss of -4.54 EPS for the current fiscal year.

Shares of SolarEdge Technologies, Inc. (NASDAQ:SEDG - Get Free Report) dropped 5.8% during trading on Tuesday . The stock traded as low as $30.50 and last traded at $31.85. Approximately 1,168,234 shares changed hands during trading, a decline of 76% from the average daily volume of 4,809,616 shares. The stock had previously closed at $33.82.

Wall Street Analyst Weigh In

SEDG has been the topic of several research analyst reports. Mizuho increased their target price on SolarEdge Technologies from $18.00 to $29.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. TD Cowen raised their price target on SolarEdge Technologies from $18.00 to $20.00 and gave the company a "hold" rating in a report on Friday, August 8th. BNP Paribas upgraded SolarEdge Technologies to a "strong sell" rating in a report on Wednesday, July 16th. Oppenheimer reiterated a "market perform" rating on shares of SolarEdge Technologies in a report on Monday, August 11th. Finally, Guggenheim raised their price target on SolarEdge Technologies from $5.00 to $7.00 and gave the company a "sell" rating in a report on Monday, August 25th. Seventeen investment analysts have rated the stock with a Hold rating and ten have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $18.20.

SolarEdge Technologies Stock Up 0.8%

The firm has a 50 day simple moving average of $28.19 and a two-hundred day simple moving average of $20.51. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.94 and a quick ratio of 1.42. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of -1.15 and a beta of 1.50.

SolarEdge Technologies (NASDAQ:SEDG - Get Free Report) last released its earnings results on Thursday, August 7th. The semiconductor company reported ($0.81) earnings per share for the quarter, meeting the consensus estimate of ($0.81). SolarEdge Technologies had a negative return on equity of 191.53% and a negative net margin of 177.64%.The firm had revenue of $289.43 million for the quarter, compared to analyst estimates of $270.03 million. During the same quarter in the prior year, the firm posted ($1.79) earnings per share. The company's quarterly revenue was up 9.0% on a year-over-year basis. SolarEdge Technologies has set its Q3 2025 guidance at EPS. As a group, sell-side analysts expect that SolarEdge Technologies, Inc. will post -4.54 EPS for the current year.

Hedge Funds Weigh In On SolarEdge Technologies

Several hedge funds have recently added to or reduced their stakes in the stock. Resona Asset Management Co. Ltd. lifted its stake in SolarEdge Technologies by 6.7% in the second quarter. Resona Asset Management Co. Ltd. now owns 6,472 shares of the semiconductor company's stock valued at $128,000 after buying an additional 404 shares during the period. Tidal Investments LLC lifted its stake in SolarEdge Technologies by 1.2% in the second quarter. Tidal Investments LLC now owns 42,411 shares of the semiconductor company's stock valued at $865,000 after buying an additional 484 shares during the period. Maryland State Retirement & Pension System raised its position in shares of SolarEdge Technologies by 2.9% during the second quarter. Maryland State Retirement & Pension System now owns 17,352 shares of the semiconductor company's stock worth $354,000 after purchasing an additional 486 shares during the period. Public Employees Retirement System of Ohio raised its position in shares of SolarEdge Technologies by 21.5% during the second quarter. Public Employees Retirement System of Ohio now owns 2,868 shares of the semiconductor company's stock worth $59,000 after purchasing an additional 508 shares during the period. Finally, Tower Research Capital LLC TRC raised its position in shares of SolarEdge Technologies by 28.7% during the second quarter. Tower Research Capital LLC TRC now owns 2,481 shares of the semiconductor company's stock worth $51,000 after purchasing an additional 553 shares during the period. Institutional investors and hedge funds own 95.10% of the company's stock.

About SolarEdge Technologies

SolarEdge Technologies, Inc, together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage.