Why SolarEdge Technologies Stock Burned Brightly Today
Struggling next-generation energy company SolarEdge Technologies (NASDAQ: SEDG) gave investors a reason to be sunny and cheerful on Thursday with its latest news. The company announced it was shutting down one of its less significant businesses, and the market reacted by sending the stock price nearly 9% higher. This was in sharp contrast to the slumping S 500 index, which ended the day 0.4% lower.
Before market open, SolarEdge announced that it is ceasing all activity in its energy storage division. This will affect roughly 500 workers, the bulk of whom are in South Korea. The solar company expects the move will save it around $7.5 million in expenses every quarter. Assets related to the business are intended to be sold; these include the manufacturing facilities in its possession.
In the press release announcing the measure, SolarEdge quoted its interim CEO Ronen Faier as saying that it represents the "continued execution of two of our main priorities: financial stability through cost reduction, return to cash flow positivity and profitability; and focus on our core business lines of solar, PV-attached storage and energy management capabilities."
Source Fool.com
