Should I Buy SEDG? SEDG 2026 Analysis

Should You Buy Solaredge Technologies Inc (SEDG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

35.920

1 Day change

7.93%

52 Week Range

48.600

Analysis Updated At

2026/01/30

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Not a good buy right now for an impatient investor. Despite some improving sentiment (recent upgrades and bullish-leaning options put/call ratios), today’s sharp -8.4% drop, a negatively expanding MACD histogram, and price sitting near key support (~$31) argue for more downside/whipsaw risk before a clean entry. I would avoid buying today and only turn constructive after SEDG stabilizes and reclaims the ~$34 pivot area; otherwise, odds favor further choppy weakness into the next catalyst (earnings on 2026-02-18).

Technical Analysis

Price/Trend: SEDG is down sharply today (-8.40% to ~$30.99) and is trading below the pivot (33.951), signaling the near-term trend has weakened even though the broader moving-average stack is still bullish (SMA_5 > SMA_20 > SMA_200). Momentum: MACD histogram is negative (-0.0386) and expanding to the downside, which typically confirms increasing bearish momentum. RSI(6) at ~32 is near oversold-ish territory (not deeply oversold), suggesting selling pressure is elevated but not necessarily exhausted. Levels: Immediate support is S2 ~30.722 (very close to current price) and S1 ~31.955 overhead becomes near-term resistance if price stays below it. Key resistance/pivot is ~33.951; further resistances at ~35.947 and ~37.18. Pattern/Probabilities: The provided pattern study implies a 70% chance of -1.58% next day, +1% next week, and -3.89% next month—skewing the near-term risk slightly lower.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Put/call ratios below 1.0 (OI PCR 0.79; Volume PCR 0.72) indicate call interest outweighs puts, a mildly bullish sentiment read. Volatility: 30D IV ~96.78 vs historical vol ~120.63 (still extremely volatile, but IV percentile ~30.92 / IV rank ~29.76 suggests IV is not at extremes relative to the last year). Flow/Activity: Today’s option volume (8,248) is ~44.66% of the 30-day average (subdued), so the bullish skew is not backed by unusually heavy activity today. Positioning: Total OI ~318k with calls (177,933) > puts (140,268), consistent with a cautiously bullish positioning backdrop.

Technical Summary

Sell

Buy

Positive Catalysts

on 2026-02-18 pre-market could act as a catalyst if margins/orders show clear improvement.

Neutral/Negative Catalysts

- Price action risk: A large down day (-8.4%) with a negatively expanding MACD increases the probability of continued near-term weakness/failed bounces.
- Technical location: Price is sitting on/near key support (~30.72); a breakdown could trigger another leg down.
- Business fundamentals: Recent profitability and margin profile remain weak (losses and depressed gross margin), increasing sensitivity to any demand softness or pricing pressure.
- Policy/trade uncertainty: Solar tariffs and shifting policy dynamics can create demand and margin volatility (especially for international markets).

Financial Performance

Latest reported quarter: 2025/Q3.

Revenue: $340.177M, up +44.49% YoY (top-line recovery).
Net income: -$50.06M (down -95.93% YoY), still meaningfully loss-making.
EPS: -$0.84 (down -96.11% YoY).
Gross margin: 16.92%, down sharply YoY (margin pressure remains the core issue). Takeaway: Growth has returned on revenue, but the turnaround is not yet showing up in profitability/margins—this weakens the “buy right now” case unless you see clear evidence margins are bottoming.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Wall Street tone has improved modestly in early January with price targets moving up and a notable upgrade, but the overall view remains mixed.

Bullish shift: TD Cowen upgraded to Buy (PT $38 from $34) citing turnaround execution, new product launches, and U.S. manufacturing/exports improving Europe positioning.
Moderating/neutral: Deutsche Bank raised PT to $35 (Hold); Morgan Stanley upgraded to Equal Weight (PT $33). UBS raised PT to $40 but stayed Neutral.
Bearish holdouts: Citi remains Sell (PT $29). Jefferies remains Underperform (PT $33) even after raising estimates, citing downside skew. BMO remains Underperform. Pros (street view): Turnaround signs, product refresh, supply-chain/manufacturing strategy improving competitiveness, potential residential solar backdrop improvement. Cons (street view): Margins/profitability still fragile, demand recovery not fully proven, and some analysts still see downside skew even after prior rallies. Influential/political trading: No recent congress trading data available; hedge funds and insiders are reported as neutral with no significant recent trend.

SEDG Should I Buy