Why SolarEdge Technologies' Shares Popped 12.1% on Wednesday

What happened 

Shares of SolarEdge Technologies (NASDAQ: SEDG) had another great day today, gaining as much as 12.1% in a steady climb throughout the day. Shares were hitting their daily highs as I'm writing this at 2:35 p.m. EDT. 

So what

Yesterday's jump in SolarEdge's shares was because of second-quarter earnings that came in better than the market's very low expectations. Revenue grew just 2%, but the company increased profits by 11.5%

Large roof with solar panels on a partly cloudy day

Image source: Getty Images.

The news today was that analysts at Oppenheimer increased their price target for SolarEdge's stock to $207 per share and reiterated a buy rating. Ironically, shares blew through that price target today. 

Now what

I wouldn't read too much into the analyst upgrade today, although such events can drive a stock higher short term. The bigger news was yesterday's earnings and even competitor Enphase Energy reporting a solid quarter after the market closed yesterday. 

What I would take from Enphase's report was that revenue fell at Enphase while it grew for SolarEdge, indicating strength in the solar market for SolarEdge. But it'll take a few quarters to see if that trend continues, especially as Enphase tries to enter the storage market, where SolarEdge sees a bright future and a way to expand its presence in renewable energy

Chalk up today's move as another earnings-fueled bump with a little help from an analyst upgrade. 

10 stocks we like better than SolarEdge Technologies
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and SolarEdge Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of June 2, 2020


Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More