What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) fell 7% in the afternoon session after investor anxiety grew ahead of its third-quarter earnings report, fueled by negative analyst ratings and concerns over future demand. The company was scheduled to release its results on November 5. Prior to the report, it was noted that tariffs were expected to have weighed on profitability by increasing component and import costs. Adding to the negative sentiment, analysts held a consensus “Sell” rating on the stock. A key concern was the potential for a significant reduction in demand for residential solar systems, which was linked to the expiration of a major tax incentive at the end of 2025. This created uncertainty about the company's future revenue.
The shares closed the day at $32.84, down 6.4% from previous close.
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What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 94 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 5.4% on the news that RBC raised its price target on the company's shares, continuing a trend of positive analyst sentiment. The bank lifted its target to $25 from $22, though it maintained a "Sector Perform" rating on the stock. This move followed a series of similar price target increases from other analysts in the preceding days. For instance, analysts from Susquehanna, J.P. Morgan, and Morgan Stanley also recently boosted their fair value estimates for the solar energy company. This broader wave of positive adjustments from market watchers helped build upward momentum for the stock.
SolarEdge is up 122% since the beginning of the year, but at $32.87 per share, it is still trading 18.9% below its 52-week high of $40.53 from October 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $159.28.
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