Alternative Energy Stock Moves Lower Despite Bull Note

The equity is already up over 227% year-over-year

Digital Content Manager
Dec 11, 2020 at 9:49 AM
facebook twitter linkedin

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.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners