timothy sykes logo

Stock News

SolarEdge Shares Surge Amid Strategic U.S. Solar Agreements

Tim SykesAvatar
Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 8/22/2025, 5:47 pm ET 8/22/2025, 5:47 pm ET | 6 min 6 min read
SolarEdge Shares Surge Amid Strategic U.S. Solar Agreements Thumbnail

After SolarEdge Technologies Inc. announced a significant expansion into emerging markets, stocks have been trading up by 13.47 percent.

Energy industry expert:

Analyst sentiment – neutral

  1. Market Position & Fundamentals: SolarEdge Technologies (SEDG) currently faces significant financial challenges. The metrics indicate a severe profitability issue, as shown by negative margins, notably an EBIT margin of -170.8% and a profit margin of -185.15%. With total revenue of $901.46 million, SEDG continues to experience declining trends over the past three and five years, with respective revenue contractions of -27.43% and -9.99%. The company’s financial strength is strained, with a debt-to-equity ratio of 1.45, which suggests aggressive leveraging. The return on equity at -20.02% further accentuates SEDG’s management effectiveness issues, indicating poor return against shareholders’ investments. The company’s liquidity ratios, such as a current ratio of 1.9, while adequate, are insufficient to mitigate these profitability and leverage concerns.

  2. Technical Analysis & Trading Strategy: Assessing the weekly price data reveals that SEDG has shown erratic price movements with a slightly upward closing bias, closing higher at $34.25. The recent candle patterns hint at potential volatility, with significant fluctuations around key price levels like $31.16 to $34.25. The trading volume appears to support this upward momentum despite the profit warnings. The declining price from $34 to $30 previously, then recovering to $34, suggests an opportunity for short-term traders to capitalize on intraday swings. Take advantage of this volatility by adopting a range strategy; consider short positions as prices approach the resistance level of $34.25 and look for buying opportunities when the price nears $30, employing tight stop-loss orders to mitigate downside risks.

  3. Catalysts & Outlook: Recent agreements and partnerships, such as the deal with Solar Landscape for over 500 rooftop projects and the strategic partnership with Schaeffler for deploying EV charging points, provide potentially strong future revenue streams. Notably, SolarEdge’s Q3 revenue forecast of $315M-$355M surpasses market expectations, indicating possible improvements. Despite missing Q2 earnings expectations, SEDG’s ability to secure high-profile deals signals an operational pivot possibly leading to market share expansion. This outlook, aligned with analysts adjusting price targets upward (e.g., UBS with a $30 target), supports a cautiously optimistic future. However, SEDG’s reliance on these deals becoming profitable coupled with industry competition necessitates caution. Expect support levels around $20 to hold firm, while breaking $35 could signal a potential uptrend. Overall, our sentiment on SEDG is evaluated as Neutral due to its operational improvements against financial constraints and market pressures.

  • A projected revenue surge for Q3 is set between $315M and $355M, surpassing analyst predictions and bolstering investor confidence.

  • The stock price hiked by 7.2% following the deal’s disclosure, affirming a positive market response to strategic expansions.

  • Strategic partnerships in Europe, particularly with Schaeffler, outline plans for a robust electric vehicle charging network by 2030, amplifying SolarEdge’s diversification efforts.

  • Investment analysts highlight further stock price upgrades, enhancing the company’s competitive edge in the solar industry landscape.

Candlestick Chart

Weekly Update Aug 18 – Aug 22, 2025: On Friday, August 22, 2025 SolarEdge Technologies Inc. stock [NASDAQ: SEDG] is trending up by 13.47%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

SolarEdge’s recent financial performance showcased resilience through strategic initiatives, enhancing investor perceptions. The latest quarterly earnings report reflected a notable increase, with revenues rising to $289.4M, outperforming previous forecasts. This growth denotes a significant stride from prior quarterly losses with an improvement in revenue year over year, setting a robust foundation for future financial stability. The company’s profit margins, though negative, exhibit a narrowing trend, alongside a reported adjusted EPS beating market expectations slightly.

The company’s current valuation indicates a Price-to-Sales ratio of 2.02, signifying investor optimism relative to industry performance standards. SolarEdge’s liquidity remains stable, demonstrated by a current ratio of 1.9, which underlines its strong capability to cover short-term obligations. Although profitability ratios reveal ongoing challenges, with returns on assets and equity still negative, strategic expansions and collaborations suggest potential long-term benefit. Consequently, this forecasted revenue and market growth present clear investment opportunities as SolarEdge solidifies its position in the renewable energy marketplace.

More Breaking News

Conclusion

SolarEdge Technologies is adeptly navigating the evolving renewable energy sector with strategic partnerships and progressive earnings projections. These endeavors have clearly resonated with traders, as evidenced by the recent uplift in share value. The multiple projects underway underscore the firm’s focus on extensive market reach and diversification, aiming to capture a significant share of both the U.S. and European markets. Despite current profitability challenges, projected revenue growth and new strategic partnerships reveal a bright horizon for SolarEdge, solidifying its reputation and competitiveness in the solar technology arena.

In the coming fiscal periods, continued progress in these domains is expected to define SolarEdge’s trajectory. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” Traders will keenly observe execution against potential outcomes of these initiatives, where expanding market share and operational efficiency hold the key to unlocking greater financial success. The positivity surrounding upcoming ventures manifests a promising outlook, subject to sustained strategic execution and market adaptability.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”