Simmons Energy initiated coverage of the security with a $325 price target
The shares of SolarEdge Technologies Inc (NASDAQ:SEDG) are down 0.6% at $271.80 at last check, despite Simmons Energy initiating coverage of the solar company with an "overweight" rating and $325 price target. This bull note is roughly 20% higher than the stock's current perch, and is even more bullish when compared to a 12-month consensus target price of $246.63, which is a 9.8% discount to last night's close.
Digging deeper, SolarEdge stock has experienced its fair share of volatility over the past couple of months. SEDG scored a record of $317.88 on Oct. 20, but were knocked off those levels after an early-November post-earnings bear gap. However, the shares' 120-day moving average contained the pullback. Year-over-year, SEDG is up an impressive 227.5%.
Analysts were mostly pessimistic toward the stock coming into today, with seven of the 12 in question carrying a tepid "hold" or worse rating, and the remaining five sporting a "strong buy." This leaves plenty of room for additional price-target hikes and upgrades moving forward.
The options pits lean more optimistic, with calls incredibly popular. This is per the stock's 10-day call/put volume ratio of 4.00 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 99% of readings from the past year. In simpler terms, calls are being picked up at a quicker-than-usual pace.
Lastly, SolarEdge stock's Schaeffer's Volatility Scorecard (SVS) ranks high at 88 out of a possible 100. This means the equity has tended to exceed volatility expectations during the past 12 months -- a good thing for options buyers.