SolarEdge Technologies (NASDAQ:SEDG) Shares Gap Up on Better-Than-Expected Earnings

SolarEdge Technologies, Inc. (NASDAQ:SEDG) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $37.13, but opened at $40.26. SolarEdge Technologies shares last traded at $35.3910, with a volume of 5,067,836 shares traded.

The semiconductor company reported ($0.14) EPS for the quarter, topping the consensus estimate of ($0.19) by $0.05. SolarEdge Technologies had a negative return on equity of 45.54% and a negative net margin of 34.23%.The firm had revenue of $333.80 million for the quarter, compared to the consensus estimate of $330.33 million. During the same quarter in the previous year, the business earned ($3.52) earnings per share. The company’s quarterly revenue was up 70.9% on a year-over-year basis.

Key Stories Impacting SolarEdge Technologies

Here are the key news stories impacting SolarEdge Technologies this week:

• Positive Sentiment: Solid Q4 results — SolarEdge reported Q4 revenue up ~70.9% YoY and narrowed its loss (EPS -$0.14 vs. -$0.19 estimate), with management pointing to improving shipments and cash flow. This is the core catalyst that initially lifted the stock after the print. Earnings Press Release
• Positive Sentiment: Company outlook and strategic initiatives — SolarEdge outlined 2026 margin-expansion targets, a global rollout for its Nexis product and progress on an AI/data-center power strategy, which support higher-margin growth expectations over time. Strategy Article
• Positive Sentiment: Bullish analyst move — TD Cowen raised its price target from $38 to $43 and set a “buy” rating, representing material upside vs. the current price and adding institutional support for upside.
• Neutral Sentiment: Guidance and transcript — SolarEdge provided Q1 revenue guidance in a $290M–$320M range (near consensus), and the full earnings-call transcript is available for detail; guidance was not aggressively above expectations, tempering enthusiasm. Earnings Coverage Call Transcript
• Neutral Sentiment: Valuation checks — Post-earnings pieces reviewed valuation after the recovery and guidance; these analyses may keep some investors on the sidelines until clearer margin delivery is visible. Valuation Article
• Negative Sentiment: Profit-taking / earnings already priced in — Market reaction included a notable intraday dip, with commentary that strong results had been largely priced in, leading to a pullback despite the beat. Price Action Article
• Negative Sentiment: Mixed analyst pressure — Royal Bank of Canada cut its price target to $32 (sector perform), and Goldman Sachs left a neutral stance while only modestly raising its PT to $36, creating uneven sell-side signals that weigh on conviction. Analyst Notes
• Negative Sentiment: Ongoing profitability concerns — Despite revenue growth, SolarEdge still shows negative net margins and return on equity, and the street models expect losses for the year, which keeps longer-term valuation questions in play.

Analyst Upgrades and Downgrades

SEDG has been the subject of a number of analyst reports. Barclays increased their price objective on SolarEdge Technologies from $36.00 to $39.00 and gave the company an “equal weight” rating in a research note on Thursday, January 15th. Royal Bank Of Canada lowered their price target on shares of SolarEdge Technologies from $34.00 to $32.00 and set a “sector perform” rating for the company in a report on Thursday. Jefferies Financial Group reissued an “underperform” rating on shares of SolarEdge Technologies in a research report on Wednesday, January 21st. BMO Capital Markets raised their price target on shares of SolarEdge Technologies from $19.00 to $25.00 and gave the stock an “underperform” rating in a report on Thursday, November 6th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SolarEdge Technologies in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, sixteen have assigned a Hold rating and seven have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $26.57.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SEDG. Accent Capital Management LLC purchased a new stake in SolarEdge Technologies in the third quarter worth $25,000. Whittier Trust Co. purchased a new position in SolarEdge Technologies during the third quarter valued at $27,000. Hantz Financial Services Inc. boosted its holdings in shares of SolarEdge Technologies by 352.5% during the 3rd quarter. Hantz Financial Services Inc. now owns 733 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 571 shares in the last quarter. State of Wyoming bought a new stake in shares of SolarEdge Technologies during the 4th quarter valued at $27,000. Finally, Saranac Partners Ltd purchased a new stake in shares of SolarEdge Technologies in the 3rd quarter worth about $28,000. Hedge funds and other institutional investors own 95.10% of the company’s stock.

SolarEdge Technologies Stock Performance

The company has a current ratio of 2.17, a quick ratio of 1.60 and a debt-to-equity ratio of 0.82. The company’s 50 day moving average is $32.59 and its 200-day moving average is $33.66. The company has a market capitalization of $2.09 billion, a P/E ratio of -5.08 and a beta of 1.66.

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.