There is no doubt that SolarEdge Technologies Inc. (SEDG) ticks all the boxes.

SolarEdge Technologies Inc. (NASDAQ: SEDG) stock fell -0.26% on Tuesday to $308.37 against a previous-day closing price of $309.18. With 1.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.05 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $309.99 whereas the lowest price it dropped to was $298.11. The 52-week range on SEDG shows that it touched its highest point at $375.90 and its lowest point at $190.15 during that stretch. It currently has a 1-year price target of $350.31. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SEDG was down-trending over the past week, with a drop of -3.69%, but this was down by -4.58% over a month. Three-month performance surged to 52.16% while six-month performance rose 3.00%. The stock gained 39.97% in the past year, while it has gained 8.86% so far this year. A look at the trailing 12-month EPS for SEDG yields 2.04 with Next year EPS estimates of 8.47. For the next quarter, that number is 1.54. This implies an EPS growth rate of 15.20% for this year and 80.37% for next year. EPS is expected to grow by 32.89% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 39.50%.

Float and Shares Shorts:

At present, 55.73 million SEDG shares are outstanding with a float of 55.33 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.04 million, which was 3.66% higher than short shares on Sep 14, 2022. In addition to Mr. Zvi Lando as the firm’s CEO & Director, Mr. Yoav Galin serves as its VP of R&D and Founder.


Institutional Ownership:

Through their ownership of 88.98% of SEDG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.13% of SEDG, in contrast to 37.35% held by mutual funds. Shares owned by individuals account for 29.01%. As the largest shareholder in SEDG with 5.37% of the stake, BlackRock Fund Advisors holds 2,999,587 shares worth 2,999,587. A second-largest stockholder of SEDG, SSgA Funds Management, Inc., holds 2,056,632 shares, controlling over 3.68% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SEDG, holding 2,028,707 shares or 3.63% stake. With a 2.31% stake in SEDG, the Vanguard 500 Index Fund is the largest stakeholder. A total of 1,292,053 shares are owned by the mutual fund manager. The iShares II Plc – Global Clean Ene, which owns about 2.11% of SEDG stock, is the second-largest Mutual Fund holder. It holds 1,177,036 shares valued at 333.42 million. iShares Global Clean Energy ETF holds 1.82% of the stake in SEDG, owning 1,015,774 shares worth 287.74 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SEDG since 27 analysts follow the stock currently. There are 18 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SEDG analysts setting a high price target of $416.00 and a low target of $245.00, the average target price over the next 12 months is $358.17. Based on these targets, SEDG could surge 34.9% to reach the target high and fall by -20.55% to reach the target low. Reaching the average price target will result in a growth of 16.15% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SEDG will report FY 2022 earnings on 02/13/2024. Analysts have provided yearly estimates in a range of $5.83 being high and $2.34 being low. For SEDG, this leads to a yearly average estimate of $4.47. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SolarEdge Technologies Inc. surprised analysts by -$0.56 when it reported $0.91 EPS against a consensus estimate of $1.47. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $1.89 and the low estimate is $1.08. The average estimate for the next quarter is thus $1.52.

Summary of Insider Activity:

Insiders traded SEDG stock several times over the past three months with 15 Buys and 31 Sells. In these transactions, 25,568 shares were bought while 24,686 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 216 over the past year. The total number of shares bought during that period was 63,829 while 154,315 shares were sold.

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