SolarEdge (NASDAQ:SEDG) stock is taking a beating on Tuesday after the company announced that one of its customers has filed for bankruptcy.
According to a filing with the Securities and Exchange Commission (SEC), SolarEdge customer PM&M Electric has filed for Chapter 7 bankruptcy. It owes SolarEdge $11.4 million via a secured promissory note.
This has investors in SEDG stock worried about whether the company will ever see that payment. SolarEdge says it will be closely watching the bankruptcy filing but says there’s no guarantee it will get the money back from PM&M Electric.
In addition to that, SolarEdge announced a private placement of $300 million with institutional investors. This will be in the form of convertible senior notes due 2029.
What’s Next for SEDG Stock?
SolarEdge also reaffirmed its guidance for the second quarter of 2024 today. This has it expecting revenue to range from $250 million to $280 million. Wall Street’s estimate for the period is $265.8 million in revenue.
SEDG stock is down 17.1% as of Tuesday morning. This comes alongside more than 7 million shares changing hands. For comparison, the company’s daily average trading volume is about 2.3 million shares.
Investors will want to keep reading for more of the most recent stock market stories!
We have all of the hottest news that traders need to know about on Tuesday! Among that is what’s happening with shares of Grail (NASDAQ:GRAL), La Rosa (NASDAQ:LRHC) and Faraday Future (NASDAQ:FFIE) stock. All of this info is ready at the following links!
More Stock Market News for Tuesday
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- FFIE Stock Alert: Faraday Future Wants to Reverse Split Its Stock
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
