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MARKETS LIVE BLOG:

STOCKS WOBBLE AFTER COOLING U.S. PCE DATA RAISE FED HOPES

Fed's preferred inflation gauge shows prices rose at slowest pace since March 2021

SolarEdge stock down on negative free cash flow, PM&M setback

Julie Hyman and Josh Lipton

Shares of SolarEdge Technologies (SEDG) are falling after one of its customers, PM&M Electric, filed for bankruptcy. The company has announced that it expects negative free cash flow of $150 million. SolarEdge is also planning a $300 million convertible note offering, which will dilute value for existing shareholders.

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest developments for SolarEdge and what they could mean for the company moving forward

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Solar edge.

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They are trending that they're going in the wrong direction if you're long the stock on one of its customers p and and and Electric filed for bankruptcy.

The company solar that is revealing that in the filing and solar edge by the way, also saying it now expects negative free cash flow of about $150 million in the court current quarter.

On top of all of that, the company is also planning a $300 million convertible note offering.

So that'll be convertible into shares that will dilute the value for existing shareholders, all of that combining into a big tumble for those shares.

Yeah, I reached out to Jordan Levy at Truest and he covers the name.

Here's what he told his clients.

Uh after this news, he said, listen, the free cash flow guidance he told them was, was that was offered was considerably below his call.

His forecast saying that um does not expect liquidity to be a sir here Julie but said the negative free cash flow guide likely represents another proof point.

He said of continued market challenges and inventory overhang sticks with his uh hold rating.

For now in the name.

Yeah, definitely.

And those shares really tumbling here, by the way, that customer that went, uh, that is filed for bankruptcy owes solaredge $11.4 million.

So it's unclear how much of any of that they will get.

There you go.