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Does SolarEdge Technologies Inc. (NASDAQ: SEDG) Need To Rethink Its Strategy?

SolarEdge Technologies Inc. (NASDAQ:SEDG) price is hovering higher on Tuesday, September 19, jumping 2.73% above its previous close.

A look at today’s price movement shows that the recent level at last check reads $136.22, with intraday deals fluctuating between $135.87 and $139.0981. The company’s P/E ratio in the trailing 12-month period read 27.07. Taking into account the 52-week price action we note that the stock hit a 52-week high of $345.80 and 52-week low of $135.87. The stock subtracted -13.80% on its value in the past month.

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SolarEdge Technologies Inc., which has a market valuation of $8.17 billion. Analysts tracking SEDG have forecast the quarterly EPS to grow by 1.78 per share this quarter, while the same analysts predict the annual EPS to hit $9.3 for the year 2023 and up to $10.85 for 2024. In this case, analysts estimate an annual EPS growth of 56.30% for the year and 16.70% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $908.84 million, with the likely lows of $878.59 million and highs of $1.04 billion. The average estimate suggests sales growth for the quarter will likely rise by 10.50% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $3.79 billion for the company’s annual revenue in 2023. Per this projection, the revenue is forecast to grow 21.90% above that which the company brought in 2023.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give SEDG a short term outlook of 100% Sell on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Sell, while an average of long term indicators are currently assigning the stock as 100% Sell.

If we dive deeper into the stock’s performance we see the positive picture represented by the PEG ratio, currently standing at 0.74. The overview shows that SEDG’s price is at present -10.11% off the SMA20 and -28.90% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 25.43, with weekly volatility standing at 4.00%. The indicator jumps to 3.58% when calculated based on the past 30 days. SolarEdge Technologies Inc. (NASDAQ:SEDG)’s beta value is holding at 1.42, while the average true range (ATR) indicator is currently reading 6.56.

Turning out attention to how the SolarEdge Technologies Inc. stock has performed in comparison to its peers in the industry, here’s what we find: SEDG’s stock is 2.73% on the day and -54.93% in the past 12 months, while Analog Devices Inc. (ADI) traded -1.44% in the latest session and is positioned 18.64% up on its price 12 months ago. Another comparison is with Trimble Inc. (TRMB) whose stock price is down -0.21% in the current trading session, and has flourished -11.37% over the past year. Also, Teradyne Inc. (TER) is currently showing down trend of -0.33% while its price kept floating at 17.47% over the past year. As for SolarEdge Technologies Inc., the P/E ratio stands at 27.07 higher than that of Analog Devices Inc.’s at 24.07 and Trimble Inc.’s 37.53. Elsewhere in the market, the S&P 500 Index has stumbled -0.66% in today’s early trading, with the Dow Jones Industrial also seeing a negative session so far with -0.69%.

An analysis of the SolarEdge Technologies Inc. (NASDAQ:SEDG) stock in terms of its daily trading volume indicates that the 3-month average is 1.62 million. However, this figure increases on the past 10-day timeline to an average of 1.83 million.

Current records show that the company has 56.42M in outstanding shares. The insiders’ percentage holdings are 0.60% of outstanding shares while the percentage share held by institutions stands at 90.30%. The stats also highlight that short interest as of Aug 30, 2023, stood at 4.21 million shares, which puts the short ratio at the time at 2.13. From this we can glean that short interest is 7.43% of company’s current outstanding shares. Notably, we see that shares short in August rose slightly given the previous month’s figure stood at 3.46 million. But the -50.60% downside, the stock’s price has registered year-to-date as of today’s value, will likely reignite investor interest given the prospect of it rallying even higher.