To say investors in solar energy company SolarEdge Technologies(NASDAQ: SEDG) have had a bad year is an understatement. The stock's sharp decline continued this week. As of Friday midday trading, SolarEdge shares were down by over 15% just this week, according to data provided by S&P Global Market Intelligence.
That drop has contributed to a massive 74% decline SolarEdge shares this year. That more than erased all the prior gains the stock had after it soared in recent years. The company made a big announcement this week, but that didn't stem the stock's losses.
CEO steps down
The big news this week was SolarEdge CEO Zvi Lando deciding to resign from that position. Lando will remain as an advisor during the leadership transition and will remain a member of the board of directors. In announcing his resignation, Lando stated, "The road to a full recovery of SolarEdge is still ahead of us and to drive this recovery at a fast pace requires new energy and leadership."
The recovery he refers to comes as sales have plunged for the provider of solar systems. Revenue dropped 73% in the second quarter versus the year-ago period. But on a positive note, sales grew 30% sequentially from the prior quarter.
The business has slowed significantly especially in Europe as a high interest rate environment led to lower spending on renewable energy systems. The company said its chief financial officer will serve as interim CEO while the board of directors looks to permanently fill the position.
Investors don't see this as a good time to add uncertainty in the leadership position to a slow market environment. But there are signs that environment is improving. It will likely be a slow process, however.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy.
