AI Trading NASDAQ Wed, 24 Jan

Dear Reader,

Today’s featured asset is SEDG, the stock of SolarEdge Technologies Inc. If you had traded with our AI strategy between March 15, 2021 and December 19, 2023, you could have potentially earned a return of 403.71%. The average trade during this period had a return of 31.05% and lasted for 41.0 days in the long position. A total of 13.0 positions were taken over this time frame. Based on our model with an accuracy of 0.62, we predict that SEDG is currently a STRONGBUY with a buy price target of 75.76, according to the analyst consensus price target of 352.95.

SolarEdge Technologies Inc: A Leader in Solar Inverter Systems

Solar energy has been gaining popularity over the years as a clean and renewable energy source. With the increasing demand for solar installations, the market for solar inverter systems has also been growing rapidly. One company that has been leading the charge in this market is SolarEdge Technologies Inc (SEDG), with its innovative and efficient solar inverter systems.

Company Overview and Markets

Founded in 2006 and headquartered in Herzliya, Israel, SolarEdge Technologies Inc designs, develops, and sells optimized direct current (DC) inverter systems for solar photovoltaic (PV) installations worldwide. The company’s products include power optimizers, inverters, and monitoring systems, which are used in residential, commercial, and utility-scale solar installations.

SolarEdge has a global presence, with offices in over 25 countries and a strong network of distributors and installers. The company’s products have been installed in over 140 countries, making it one of the leading players in the solar inverter market.

Historic Company Performance

Since its inception, SolarEdge has shown significant growth and success. In its latest quarterly report, for the quarter ending September 2022, the company reported a revenue of $3.1 billion, a 61.4% increase compared to the same quarter in the previous year. Its gross profit also increased by 44.5%, reaching $844.6 million.

In terms of profitability, SolarEdge has shown consistent growth. Its profit margin for the trailing twelve months (TTM) is 3.02%, and its operating margin TTM is 9.09%. The company’s return on assets TTM is 4.94%, and its return on equity TTM is 5.38%. These numbers indicate that the company is efficiently managing its operations and generating profits for its shareholders.

Share Price Performance

SolarEdge went public in 2015 with an IPO price of $18 per share. Since then, the company’s stock has shown significant growth, reaching a high of $375.9 in the past 52 weeks. As of January 23, 2024, the stock is currently trading at $75.76, with a market capitalization of $17.63 billion.

The company’s stock has shown strong growth in the past five years, with a 5-year return of over 650%. Its 1-year return is also impressive at over 100%. However, the stock has also shown volatility, with a 52-week low of $190.15.

Current Share Price Performance

At the current share price of $75.76, SolarEdge’s stock is trading at a trailing price-to-earnings (P/E) ratio of 150.2 and a forward P/E ratio of 49.26. The company’s price-to-sales ratio TTM is 6.42, and its price-to-book ratio is 9.14. These numbers indicate that the stock is currently trading at a relatively high valuation compared to its historical numbers.

In terms of analyst recommendations, the current target price for SolarEdge’s stock is $352.95, indicating a potential upside of over 360%. The company’s beta is 1.319, indicating that the stock is relatively more volatile than the overall market.

Conclusion

SolarEdge Technologies Inc has established itself as a leader in the solar inverter market with its efficient and innovative products. The company has shown strong historic performance and has a global presence, making it well-positioned for future growth. However, the stock’s current valuation may be a concern for some investors, and it is important to keep an eye on the company’s financial performance and market trends before making an investment decision.

Symbol: SEDG
AssetType: Common Stock
Name: SolarEdge Technologies Inc
Description: SolarEdge Technologies, Inc. designs, develops and sells optimized direct current (DC) inverter systems for solar photovoltaic (PV) installations worldwide. The company is headquartered in Herzliya, Israel.
CIK: 1419612
Exchange: NASDAQ
Currency: USD
Country: USA
Sector: MANUFACTURING
Industry: SEMICONDUCTORS & RELATED DEVICES
Address: 1 HAMADA STREET, HERZILIYA PITUACH, IL
FiscalYearEnd: December
LatestQuarter: 2022-09-30
MarketCapitalization: 17630929000
EBITDA: 332334000
PERatio: 150.2
PEGRatio: 1.594
BookValue: 38.94
DividendPerShare: 0
DividendYield: 0
EPS: 2.1
RevenuePerShareTTM: 55.65
ProfitMargin: 0.0302
OperatingMarginTTM: 0.0909
ReturnOnAssetsTTM: 0.0494
ReturnOnEquityTTM: 0.0538
RevenueTTM: 3110279000
GrossProfitTTM: 844648000
DilutedEPSTTM: 2.1
QuarterlyEarningsGrowthYOY: -0.497
QuarterlyRevenueGrowthYOY: 0.614
AnalystTargetPrice: 352.95
TrailingPE: 150.2
ForwardPE: 49.26
PriceToSalesRatioTTM: 6.42
PriceToBookRatio: 9.14
EVToRevenue: 6.71
EVToEBITDA: 74.39
Beta: 1.319
52WeekHigh: 375.9
52WeekLow: 190.15
50DayMovingAverage: 306.48
200DayMovingAverage: 280.59
SharesOutstanding: 55895000
DividendDate: None
ExDividendDate: None

Date Symbol Prediction Model Accuracy Price Target Analyst Target
2024-01-23 SEDG STRONGBUY 0.62 75.76 352.95

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The Third Perspective Team