What Happened?

Shares of solar power systems company SolarEdge (NASDAQ:SEDG) fell 13.1% in the afternoon session after Citi analyst Vikram Bagri downgraded the stock's rating from Hold to Sell and lowered the price target from $12 to $9. Bagri highlighted concerns over SEDG's "stubbornly high" operating expenses, despite recent restructuring efforts, including the elimination of 400 jobs.

The shares closed the day at $14.98, down 14.7% from previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SolarEdge? Access our full analysis report here, it’s free.

What The Market Is Telling Us

SolarEdge’s shares are extremely volatile and have had 79 moves greater than 5% over the last year. But moves this big are rare even for SolarEdge and indicate this news significantly impacted the market’s perception of the business. 

The previous big move we wrote about was a day ago when the stock gained 13.1% on the news that Goldman Sachs raised the stock's price target from $19 to $21 and reaffirmed its Buy rating. The firm's improved rating was based on several company initiatives that could improve the outlook.

SolarEdge is up 1.4% since the beginning of the year, but at $15 per share, it is still trading 82.7% below its 52-week high of $86.94 from February 2024. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $144.01.

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