SolarEdge Technologies Stock Gains On Announcing 4th Round Of Layoffs In 12 Months: Retail Extremely Bullish
By Stocktwits Inc | First Published Jan 7, 2025, 12:35 AM ISTSolarEdge had previously laid off 16% of its workforce in November in a bid to trim its operating costs.
Shares of SolarEdge Technologies Inc. (SEDG) surged in mid-day trade on Monday after the company announced its fourth layoff in the past 12 months.
The Israel-based company laid off 400 employees as it looks to tackle a broader industry-wide slump. It expects a cost of between $3 million to $5 million due to severance and one-time termination benefits. However, it expects to save between $9 million to $11 million in quarterly expenses.
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SolarEdge had previously laid off 16% of its workforce in November in a bid to trim its operating costs. It also trimmed its fourth-quarter revenue expectations due to weak demand for solar inverters.
The company also announced that it has signed safe harbor agreements with two solar installation and financing companies. As a result of these deals, SolarEdge will supply inverters, batteries, and power optimizers.
It also sold §45X production tax credits from the September 2023 quarter, qualifying for the 11 cents per watt credit via the Crux platform.
Reacting to the news, SolarEdge’s stock surged more than 14% on Monday, rising to a two-month high.
Retail sentiment on Stocktwits was in the ‘extremely bullish’ (86/100) territory, with message volume in the ‘high’ (79/100) region.
Users expressed bullish sentiment about the SolarEdge stock, with one saying that this is “just the beginning of break out.”
Another user thinks this is the chance for potential investors to jump in.
Despite Monday’s rally, SolarEdge stock has been down more than 36% in the past six months and has lost nearly 78% of its value over the past year.
Daiwa lowered SolarEdge's stock price target to $15 from $19 in December, according to TheFly.
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