SolarEdge Technologies, Inc. (NASDAQ: SEDG)
SolarEdge Technologies, Inc. (SEDG), a direct current solar installations company on Wednesday announced positive fiscal first quarter 2016 financial results. SEDG reported record revenues of $115.1 million, which was up 16.9% from last quarter. GAAP net income was $14.4 million up from $9.3 million in prior quarter and up $2.5 from fiscal first quarter 2015.
CEO Comments
“We are very satisfied with another strong quarter of record revenues and improved gross margins,” said Guy Sella, Founder, Chairman and CEO of SolarEdge. “In addition to our very positive financial results, this quarter we introduced our new HD Wave inverter topology, demonstrating our technological leadership in the market. We are confident that our global presence and expanded product offering position us well for continued growth.” Business Wire
SEDG Technical Analysis
SEDG gapped up in price yesterday to $20.01, up from the prior day’s close of $17.18, which is a 16% increase on the favorable news. Taking a look at the daily chart, we can see the last time SEDG traded above this price level was on October 29th, when it closed at $20.40. Taking a further look back on the chart, we can see SEDG has been in overall decline dating back to June 22nd when SEDG was trading at its 52 week high price of $43. More recently, the stock has been on a sharper decline which began on October 8th when SEDG was trading at $25.11, and fell all the way to lows of $16.62, or equivalent to a 23% drop in price. SEDG does have a low float of 19.57 million shares and is trading 2.5 times the normal daily trading volume. Both of these factors make SEDG a prime candidate for the gap and go strategy. SEDG did open at the pre market highs of $20.01. For trading purposes, my entry point would have been $20.10 looking for a run through $20.50. My stop loss would have been $19.90, fearing anything below that and the stock would start to fill in the gap up.
About SolarEdge Technologies, Inc.
SolarEdge Technologies, Inc. (SolarEdge) is a provider of solar power harvesting and photovoltaic (PV) monitoring solutions. The Company’s portfolio of products includes power optimizers, PV inverters and a Web portal for module-level monitoring and fault detection. The Company’s systems are monitored through its cloud-based monitoring platform. The SolarEdge system enables harvesting more solar power from any PV system by removing the known system constraints across the photovoltaic energy space.The Company’s customers include providers of solar PV systems to residential and commercial end users, such as SolarCity, SunRun Inc. and Vivint Solar, Inc. The Company primarily sells its products directly to solar installers and engineering, procurement and construction firms (EPCs) and indirectly to thousands of smaller solar installers through distributors and electrical equipment wholesalers. The Company has shipped approximately 1.3 gigawatts (GW) of its DC optimized inverter systems and its products have been installed in solar PV systems in 73 countries. Reuters
