Solaredge Outlook - A Technical Standoff and Mixed Analyst Sentiment

1. Market Snapshot

Headline Takeaway: Solaredge (SEDG.O) is caught in a technical standoff, with mixed analyst ratings and modest positive money flows, suggesting caution for traders. The stock is down by 11.09% recently, despite a positive overall fund flow trend.

2. News Highlights

Recent news highlights include:

• McKinsey Tariff Analysis: A new report on U.S. tariffs and their impact on semiconductors highlights potential regulatory shifts, which could indirectly affect Solaredge, given its presence in the energy and power sector.
• Global Supply Chain Developments: Japan’s proposed cooperation with the U.S. on rare earths and semiconductors may create new trade dynamics, possibly beneficial for energy-focused companies like Solaredge.
• ETF Outflows: The $750 million net outflow from the US Semiconductors ETF (SOXX) in May 2025 indicates investor caution, which could weigh on Solaredge’s stock in the near term.

3. Analyst Views & Fundamentals

Average Rating Score: The simple average rating from four active analysts is 2.50, while the performance-weighted average is only 0.89. This suggests a generally pessimistic outlook from analysts.

Rating Consistency: Analyst ratings are divergent, with three "Neutral" ratings and one "Strong Sell." This lack of consensus reflects uncertainty about Solaredge’s near-term direction.

Price Trend Alignment: The current price decline aligns with the overall negative sentiment among analysts, suggesting that market expectations are pessimistic at this stage.

Key Fundamental Factors:

• Net cash flow from operating activities per share (YoY growth rate): 109.57%, with an internal diagnostic score of 3.00, indicating strong operational cash generation.
• Net profit attributable to parent company shareholders / Net profit: 100.00%, with an internal diagnostic score of 1.00, suggesting no significant divergence between net profit and shareholder profits.
• Price to Cash Flow (PCF): -106.54, with an internal diagnostic score of 4.00, indicating a potentially undervalued stock relative to cash flow.
• EV/EBIT: -9.68, with an internal diagnostic score of 4.00, suggesting low valuation relative to earnings before interest and taxes.
• Inventory turnover days: 230.31 days, with an internal diagnostic score of 0.00, indicating poor inventory management and potential liquidity concerns.

4. Money-Flow Trends

Despite a recent price drop of 11.09%, Solaredge is experiencing a positive overall fund flow trend. Large and extra-large institutional investors are showing a positive bias, with inflow ratios above 49% for all categories. However, the medium trend is negative, suggesting some larger money managers are taking profits or hedging bets.

Big-money (large and extra-large) inflow ratios are at 49.7% and 51.4%, respectively, indicating a cautious but overall positive stance. Retail investors (small) are also contributing with a 50.3% inflow ratio, suggesting retail confidence in Solaredge's near-term prospects.

5. Key Technical Signals

Technically, Solaredge is in a wait-and-see phase, with a technical score of 5.49, signaling neutrality. Here’s a breakdown of the key technical indicators:

• Williams %R (WR) Overbought: This indicator shows a neutral bias with an internal diagnostic score of 1.75. While the stock is in overbought territory, it has not triggered a strong bearish signal.
• Long Lower Shadow: A strong bullish signal with an internal diagnostic score of 7.88. This pattern has historically yielded a 2.85% average return and a 62.5% win rate.
• MACD Death Cross: A bullish signal with an internal diagnostic score of 6.83, indicating a potential trend reversal.

Recent Chart Patterns: From 2025-09-02 to 2025-09-09, Solaredge has shown a mix of bullish and bearish signals. The most recent notable patterns include a Long Lower Shadow and MACD Death Cross on September 9, 2025, suggesting potential short-term strength.

Key Insights: Technical indicators suggest a volatile state with no clear trend. Long and short signals are balanced, and close attention should be paid to upcoming price action for a directional bias.

6. Conclusion

With a fundamental score of 2.34 and a technical score of 5.49, Solaredge remains a cautious play. The stock is showing signs of institutional inflows and some bullish candlestick patterns, but fundamentals remain mixed and analyst sentiment is divided. Consider waiting for a pull-back or clearer technical direction before making a move, and monitor upcoming earnings for potential catalysts.