# SolarEdge Technologies Inc (SEDG)

SolarEdge Technologies, Inc. designs, develops and sells optimized direct current (DC) inverter systems for solar photovoltaic (PV) installations worldwide. The company is headquartered in Herzliya, Israel.

## Stock Price Trends

Stock price trends estimated using linear regression.

#### Key facts

- The primary trend is decreasing.
- The decline rate of the primary trend is 80.67% per annum.
- SEDG price at the close of May 24, 2024 was $48.02 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.40% per annum.
- SEDG price at the close of May 24, 2024 was inside the secondary price channel.

### Linear Regression Model

Model equation:

Y_{i} = α + β × X_{i} + ε_{i}

Top border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} + 2 × s)

Bottom border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} – 2 × s)

where:

i - observation number

Y_{i} - natural logarithm of SEDG price

X_{i} - time index, 1 day interval

σ - standard deviation of ε_{i}

a - estimator of α

b - estimator of β

s - estimator of σ

Exp() - calculates the exponent of e

### Primary Trend

Start date: January 31, 2023

End date: May 24, 2024

a = 12.0469

b = -0.0045

s = 0.1821

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0045) – 1

= -80.67%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.1821) – 1

= 107.20%

#### January 31, 2023 calculations

Top border of price channel:

Exp(Y_{927})

= Exp(a + b × X_{927} + 2 × s)

= Exp(a + b × 1,344 + 2 × s)

= Exp(12.0469 + -0.0045 × 1,344 + 2 × 0.1821)

= Exp(6.3604)

= $578.48

Bottom border of price channel:

Exp(Y_{927})

= Exp(a + b × X_{927} – 2 × s)

= Exp(a + b × 1,344 – 2 × s)

= Exp(12.0469 + -0.0045 × 1,344 – 2 × 0.1821)

= Exp(5.6319)

= $279.19

#### May 24, 2024 calculations

Top border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} + 2 × s)

= Exp(a + b × 1,823 + 2 × s)

= Exp(12.0469 + -0.0045 × 1,823 + 2 × 0.1821)

= Exp(4.2039)

= $66.95

Bottom border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} – 2 × s)

= Exp(a + b × 1,823 – 2 × s)

= Exp(12.0469 + -0.0045 × 1,823 – 2 × 0.1821)

= Exp(3.4754)

= $32.31

#### Description

- The primary trend is decreasing.
- The decline rate of the primary trend is 80.67% per annum.
- SEDG price at the close of May 24, 2024 was $48.02 and was inside the primary price channel.

### Secondary Trend

Start date: October 20, 2023

End date: May 24, 2024

a = 7.7507

b = -0.0020

s = 0.1060

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0020) – 1

= -52.40%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.1060) – 1

= 52.79%

#### October 20, 2023 calculations

Top border of price channel:

Exp(Y_{1,109})

= Exp(a + b × X_{1,109} + 2 × s)

= Exp(a + b × 1,606 + 2 × s)

= Exp(7.7507 + -0.0020 × 1,606 + 2 × 0.1060)

= Exp(4.6960)

= $109.51

Bottom border of price channel:

Exp(Y_{1,109})

= Exp(a + b × X_{1,109} – 2 × s)

= Exp(a + b × 1,606 – 2 × s)

= Exp(7.7507 + -0.0020 × 1,606 – 2 × 0.1060)

= Exp(4.2721)

= $71.67

#### May 24, 2024 calculations

Top border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} + 2 × s)

= Exp(a + b × 1,823 + 2 × s)

= Exp(7.7507 + -0.0020 × 1,823 + 2 × 0.1060)

= Exp(4.2546)

= $70.43

Bottom border of price channel:

Exp(Y_{1,258})

= Exp(a + b × X_{1,258} – 2 × s)

= Exp(a + b × 1,823 – 2 × s)

= Exp(7.7507 + -0.0020 × 1,823 – 2 × 0.1060)

= Exp(3.8307)

= $46.10

#### Description

- The secondary trend is decreasing.
- The decline rate of the secondary trend is 52.40% per annum.
- SEDG price at the close of May 24, 2024 was inside the secondary price channel.