SolarEdge Technologies (SEDG) tanked over 15% in today’s trading session after it announced plans to lay off 400 employees, including 200 in Israel, in order to return to profitability. As of December 31, the company had a total of 5,633 employees.
In a letter to staff, CEO Zvi Lando explained that the cuts are a response to a market downturn at the end of 2023 and the start of this year, which has led to lower revenues and too much inventory. The layoffs will affect all departments and involve reducing staff and cutting discretionary spending. This follows a previous round of layoffs in January, where 900 employees, about 16% of the workforce, were let go.
Investor Sentiment for SEDG Stock
Despite SolarEdge’s struggles, the sentiment among TipRanks investors is currently Neutral. Out of the 746,067 portfolios tracked by TipRanks, 0.6% hold SEDG stock. In addition, the average portfolio weighting allocated towards SEDG among those who do have a position is 6.31%. This suggests that investors of the company are fairly confident about its future.
However, in the last 30 days, less than 0.1% of those holding the stock increased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image:
Is SEDG Stock a Good Buy?
Overall, analysts have a Hold consensus rating on SEDG stock based on five Buys, 18 Holds, and two Sells assigned in the past three months. After a more than 90% decline in its share price over the past 12 months, the average SEDG price target of $49.95 per share implies 86.45% upside potential.
