Less than seven years after the technology company Solaredge was first issued on the Nasdaq, valued at $ 685 million, and now traded at $ 16.1 billion, its stock is attached to the leading S&P 500 index – which includes the shares of the 500 largest companies listed on the stock exchange. On Wall Street. Over the weekend, the expected changes in the index were reported, which will take effect on December 20, and one of them is the addition of Solaredge, which has so far been traded on the S&P Midcap 400 index.
The S&P 500 is compiled by S&P Global along with a long line of indices around the world. Entering the index requires compliance with a number of criteria, one of which is that the company in question be American. Additional criteria for entering the S&P 500 relate to the company’s market value and its trading volume.
Solaredge, managed by Zvi Lando, provides systems for monitoring and optimizing solar energy, and in recent years has also been operating in various fields related to energy storage. Although the company was established by Israeli entrepreneurs, and has extensive operations in Israel (the company’s headquarters are in Herzliya), it is legally registered as an American company. The company was founded in 2006 by the late Guy Sela (who served as CEO until close to his death in 2019), Lior Handelsman, Yoav Galin, Meir Edst and Amir Fishlov.
Currently, Solaredge is the second largest company on Wall Street among Israeli companies (and has an affiliation with Israel), after NICE, which is traded at a value of $ 18.5 billion, and before Check Point, whose market value is $ 14.5 billion.
In the past year, the Solaredge share has added about 13% to its value, after in the last few weeks it has weakened by about 17% from the peak it reached. At the same time, the S&P 500 has risen at a higher rate of 22.7% in the past year. However, in a long-term perspective, the stock has delivered a phenomenal return of over 1,600% since the March 2015 IPO.
Revenue grew by 28%
In the first three quarters of 2021, Solaredge’s revenues totaled $ 1.41 billion, a growth of 28.2% over the same period in 2020. On a non-GAAP basis, net income of $ 210 million was recorded during this period, which is $ 3.71 per share.
Solaredge generated $ 125 million in cash flow from operating activities in the first three quarters of 2021, and at the end of the period it had $ 1.16 billion in cash and investments in the fund, compared to $ 621 million in debt to convertible bondholders.
Senior executives sold company shares
Meanwhile, senior officials at Solaredge have been reporting on the sale of shares in recent days. For example, Meir Edst, vice president of technology and one of the company’s founders, sold Solaredge shares in early December for a total of about $ 3.3 million, at prices ranging from $ 315-335 per share.
Rachel Frishkolnik, Vice President and Legal Adviser, sold $ 1.2 million worth of shares at the end of November, at a share price of $ 325-342 million, after exercising options she had at exercise prices of $ 36.15 and $ 38.05, allotted to her in 2018. 2019.
Both Edest and Frishkolnik sold the shares as part of a blind sale, in which the sale dates are set in advance and the sellers have no influence over them.
Ronen Pierre, Solaredge’s CFO, said: “We are very pleased to have entered the prestigious S & P index. In general, the company places emphasis on constant growth in revenue and profitability and on continued leadership through innovation and products that make renewable energy available and cheaper. The entry into the index is a result of our growth and we will continue to invest and bring value to our shareholders. “