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SolarEdge Technologies, Inc. (SEDG) Stock Analysis

Breakout setup

SellVALUE-TRAP 3/5Moderate Confidence

Technology · Solar

Sell if holding. Engine safety override at $55.68: Quality below floor (2.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 19%; Below-average business quality.

SolarEdge Technologies develops DC-optimized inverter systems for residential and commercial PV installations globally, with Power Optimizers (41.4% of 2025 revenue) and Inverters (28.2%) as core products. Revenue is primarily from hardware sales to distributors and large... Read more

$55.68+14.2% A.UpsideScore 5.5/10#4 of 9 Solar
QualityF-score5 / 9FCF yield8.38%
Stop $50.71Target $62.26(resistance)A.R:R -2.3:1
Analyst target$39.57-28.9%21 analysts
$62.26our TP
$55.68price
$39.57mean
$26
$100

Sell if holding. Engine safety override at $55.68: Quality below floor (2.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 19%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Score 5.5/10, moderate confidence.

Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

Val6.7Qual2.1Grw10.0Mom7.4Sent3.3Ins5.0Peer4.0Tech4.5Risk4.25.5OVERALL

Recent Developments — SolarEdge Technologies, Inc.

Latest news

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Target reached (-34.7% upside)
Quality below floor (2.1 < 4.0)
Value-trap signals (3/5): Margin compression (op margin -11.8%), High leverage (D/E 4.3), Material insider selling (4 sells, 0.49% of cap)

Key Metrics

P/E (TTM)—
P/E (Fwd)34.7
Mkt Cap$3.3B
EV/EBITDA-18.7
Profit Mgn-28.6%
ROE-72.5%
Rev Growth41.5%
Beta1.18
DividendNone
Rating analysts34

Quality Signals

Piotroski F5/9

Options Flow

P/C0.45bullish
IV111%elevated
Max Pain$20-64.1% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMProductPower Optimizers41%
    10-K Item 1: 'revenues derived from the sale of Power Optimizers represented 41.4%, 34.9% and 30.3% of total revenues, respectively'
  • MEDIUMProductinverters28%
    10-K Item 1: 'revenues derived from the sale of inverters, represented 28.2%, 27.5% and 46.2% of our total revenues, respectively'

Material Events(8-K, last 90d)

  • 2026-03-10Item 5.02HIGH
    CFO Asaf Alperovitz notified SolarEdge of his resignation effective June 9, 2026. Board of Directors is initiating a process to identify a replacement CFO. No successor named at time of filing.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static

Roe
0.0
Roa
0.0
Gross Margin
0.0
Operating Margin
0.0
Net Margin
0.0
Moat
4.2
Piotroski F
5.6
Current Ratio
7.1
No competitive moatQuality concerns

Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static

Price Target
1.6
Llm Sentiment
3.0
Analyst Rating
5.0
LLM news sentiment: -0.39 (n=10)Below analyst target
GatesA.R:R -2.3=NEGATIVEMomentum 7.4>=5.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 77d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Aggressive
RSI
64 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $37.55Resistance $63.53

Price Targets

$51
$62
A.Upside+11.8%
A.R:R-2.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-34.7% upside)
! Quality below floor (2.1 < 4.0)
! Value-trap signals (3/5): Margin compression (op margin -11.8%), High leverage (D/E 4.3), Material insider selling (4 sells, 0.49% of cap)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-05 (77d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SEDG stock a buy right now?

Sell if holding. Engine safety override at $55.68: Quality below floor (2.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 19%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Prior stop was $50.71. Score 5.5/10, moderate confidence.

What is the SEDG stock price target?

Take-profit target: $62.26 (+14.2% upside). Prior stop was $50.71. Stop-loss: $50.71.

What are the risks of investing in SEDG?

Target reached (-34.7% upside); Quality below floor (2.1 < 4.0); Value-trap signals (3/5): Margin compression (op margin -11.8%), High leverage (D/E 4.3), Material insider selling (4 sells, 0.49% of cap).

Is SEDG overvalued or undervalued?

SolarEdge Technologies, Inc. trades at a P/E of N/A (forward 34.7). TrendMatrix value score: 6.7/10. Verdict: Sell.

What do analysts say about SEDG?

34 analysts cover SEDG with a consensus score of 2.7/5. Average price target: $40.

What does SolarEdge Technologies, Inc. do?SolarEdge Technologies develops DC-optimized inverter systems for residential and commercial PV installations globally,...

SolarEdge Technologies develops DC-optimized inverter systems for residential and commercial PV installations globally, with Power Optimizers (41.4% of 2025 revenue) and Inverters (28.2%) as core products. Revenue is primarily from hardware sales to distributors and large installers; the company reported a net loss of $405.4M in 2025 following a prolonged demand slowdown in Europe and the U.S.

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