Is Solaredge Technologies Inc (SEDG) a Good Buy?

Because Solaredge Technologies Inc (NASDAQ:SEDG) has sustained declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of money managers who were dropping their entire stakes by the end of the third quarter. Interestingly, Philip Hempleman’s Ardsley Partners said goodbye to the biggest investment of the 700 funds tracked by Insider Monkey, worth about $4.4 million in stock. William Charters and Mario Marcon’s fund, Sabal Capital Management, also cut its stock, about $4.3 million worth.

Let’s also examine hedge fund activity in other stocks similar to Solaredge Technologies Inc (NASDAQ:SEDG). We will take a look at The Providence Service Corporation (NASDAQ:PRSC), A10 Networks Inc (NYSE:ATEN), Ehi Car Services Ltd (ADR) (NYSE:EHIC), and Photronics, Inc. (NASDAQ:PLAB). This group of stocks’ market values are similar to SEDG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PRSC 10 159116 -5
ATEN 16 61946 3
EHIC 5 128708 1
PLAB 15 70519 -3

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $105 million. That figure was $135 million in SEDG’s case. A10 Networks Inc (NYSE:ATEN) is the most popular stock in this table. On the other hand Ehi Car Services Ltd (ADR) (NYSE:EHIC) is the least popular one with only 5 bullish hedge fund positions. Solaredge Technologies Inc (NASDAQ:SEDG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ATEN might be a better candidate to consider taking a long position in.