Israeli Solar Energy Company SolarEdge technologies (Nasdaq: SEDG) saw its stock price rise 33% last week as it announced it would close its energy storage division in Korea. Since its lowest point last month, the stock price has risen 50.9%.
SolarEdge, currently led by interim CEO and CFO Ronen Fire, designs, develops, manufactures and sells optimized direct current (DC) inverter systems for solar arrays. Despite the company’s recent gains, the company’s market cap of $917 million represents a fraction of its peak market cap of $19 billion three years ago.
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The company is dealing with changes in the solar energy market that have affected its results. Last week’s announcement of the closure of SolarEdge’s energy storage division was designed to strengthen the company’s financial position as it seeks to return to profitability and create positive cash flow, as it once again focuses on its core business. The shuttered division, which had revenues of $43 million since the beginning of the year, down from $52.5 million in the corresponding period of 2023, includes layoffs of 500 employees. The total accumulated losses from the department’s operations this year amounted to $113 million, double the losses during the same period last year.
Published by Globes, Israel Business News – en.globes.co.il – on December 1, 2024.
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