William Blair analyst Jed Dorsheimer has maintained their neutral stance on SEDG stock, giving a Hold rating today.
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Jed Dorsheimer has given his Hold rating due to a combination of factors affecting SolarEdge Technologies. The company faces challenges in the solar sector, including issues with demand and pricing, as well as uncertainties surrounding the IRA tax credits. These factors have led to a decrease in SolarEdge’s average selling price, which dropped by 17% quarter-over-quarter to boost demand, reflecting the difficulty in managing inventory in a challenging market.
Additionally, while SolarEdge trades at a significant discount compared to its peers like Enphase and First Solar, this is attributed to concerns over inventory levels and potential dilution from future capital needs. Despite these challenges, SolarEdge has shown positive free cash flow, alleviating short-term liquidity concerns, and has exceeded expectations in its recent quarterly results and guidance. However, the reliance on tax credits and the uncertainty of future government policies contribute to the cautious Hold rating.
Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SEDG in relation to earlier this year.