SolarEdge Technologies Inc. (NASDAQ: SEDG) – Sell or Short Recommendation – PT $26.25
September 22, 2015 ends the 180-day lockup period on SolarEdge Technologies .
With the conclusion of the lockup period, the company’s pre-IPO shareholders will have an opportunity to sell their own shares totaling over 38 million units, which represents more than 5 times the IPO of 7 million shares. This potential for a sharp increase in the stock available in the secondary market could result in a dramatic decrease in the stock price.
We previewed SEDG’s IPO lockup expiration event on our IPO Insights platform last week.
Business Summary: Company that Manufactures and Supplies DC Optimized Inverter Systems for Solar Photovoltaic Installations
Israel-based SolarEdge Technologies manufactures and sells a system that increases the efficiency of solar power generators by as much as 25 percent. These DC optimized inverter systems include inverters, power optimizers and cloud-based software for monitoring, which the company claims to increase the efficiency of residential, commercial and large-scale installations. Their products are in use in each industry segment, and the company markets its systems primarily through solar distributors, solar installers, wholesalers and photovoltaic module manufacturers around the globe. Since 2010, the company has shipped approximately 1.3 gigawatts of their DC optimized inverter system, and their products have been installed in a total of 73 countries.
Clients who use SolarEdge technology include SolarCity Corporation (NASDAQ:SCTY), SunRun (NASDAQ:RUN) and Vivint Solar Inc. (NYSE:VSLR) In addition, several solar distributors and electrical equipment wholesalers sell the SolarEdge optimizer, including AliusEnergy, Krannich Solar Group, Segen, and Soligent Distribution.
In spring, the company entered into an expanded supply arrangement with Vivint Solar for the SolarEdge optimized DC inverter. This represented a confirmation of the efficiency of SolarEdge technology. Previously, competitor Enphase Energy had been the sole supplier of microinverters to Vivint Solar, which as the second-largest installer of residential solar last year.
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