What happened
SolarEdge Technologies (SEDG 6.01%) stock got caught up in a pullback for the broader market last month. The company's share price sank 15.1% last month, according to data from S&P Global Market Intelligence.
January was a tough month for the stock market, with the S&P 500 index ending the period down roughly 5.3% and the Nasdaq Composite index's level slumping 9%. With the market in a turbulent state, investors were particularly hard on growth-dependent stocks, and multiple analysts weighed in with lowered price targets for SolarEdge.
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So what
Macroeconomic headwinds and supply chain concerns prompted sell-offs for many renewable energy stocks last month. While SolarEdge technologies stock did see some favorable analyst coverage early in January, a series of downward price-target revisions arrived in the latter half of the month.
J.P. Morgan's Mark Strouse published a note on SolarEdge on Jan. 20, maintaining an overweight rating on the stock but lowering his one-year price target on the stock from $373 to $324. Truist analyst Tristan Richardson then kept a buy rating on the stock in a note published on Jan. 24, but lowered his price target from $395 per share to $340 per share and cited muted residential demand as a reason for the move.
Finally, Goldman Sachs analyst Brian Lee published a note on the stock on Jan. 31, maintaining a conviction buy rating on the company but lowering his price target from $448 per share to $404 per share. Analysts remain largely bullish on SolarEdge Technologies, but shifting market dynamics have led to more cautious projections for the stock's near-term outlook.
Now what
SolarEdge Technologies stock has continued to lose ground in February's trading due to market volatility after several highly watched technology companies reported disappointing earnings results. The company's share price is down roughly 1.6% in the month so far.
SolarEdge now has a market capitalization of roughly $12.5 billion and is valued at approximately 35 times this year's expected earnings and 4.8 times adjusted sales. The company is set to publish its fourth-quarter earnings results and host a conference call after the market closes on Feb. 15.
With its last earnings report, the company issued guidance for revenue between $530 million and $560 million, a non-GAAP (adjusted) gross margin between 30% and 32%. Sales for the solar segment are projected to be between $490 million and $515 million, and the company guided for the segment's gross margin to be between 31% and 34%.
