Enphase Energy (NASDAQ:ENPH) Stock Rating Cut to "Neutral" at Roth Capital

Key Points

• Roth Capital downgraded Enphase Energy from “Buy” to “Neutral” and set a $30 price target, implying just 0.81% upside from the prior close.
• Enphase’s third-quarter results missed expectations: EPS was $0.41 versus $0.51 expected, while revenue fell 28.5% year over year to $293.3 million. Fourth-quarter revenue guidance of $225 million to $255 million also pointed to continued near-term weakness.
• Analyst sentiment has softened, with a consensus “Hold” rating and average price target of $38.57; seven analysts rate the stock Buy, 13 Hold, and three Sell.

Enphase Energy (NASDAQ:ENPH - Get Free Report) was downgraded by research analysts at Roth Capital from a "buy" rating to a "neutral" rating in a research note issued on Wednesday, Briefing.com reports. They presently have a $30.00 target price on the semiconductor company's stock. Roth Capital's target price suggests a potential upside of 0.81% from the company's previous close.

Other equities analysts have also issued reports about the stock. Barclays cut their target price on shares of Enphase Energy from $50.00 to $44.00 and set an "equal weight" rating for the company in a report on Tuesday, October 6th. BMO Capital Markets lowered their price target on shares of Enphase Energy from $37.00 to $28.00 and set a "market perform" rating on the stock in a research report on Wednesday, October 21st. Mizuho set a $34.00 target price on Enphase Energy in a research note on Wednesday. Susquehanna decreased their price objective on Enphase Energy from $35.00 to $26.00 and set a "neutral" rating on the stock in a report on Wednesday. Finally, Citigroup dropped their price target on shares of Enphase Energy from $40.00 to $37.00 and set a "neutral" rating for the company in a research report on Tuesday, September 29th. Seven analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $38.57.

Enphase Energy Trading Down 2.0%

ENPH opened at $29.76 on Wednesday. The firm has a market cap of $3.93 billion, a price-to-earnings ratio of 29.76 and a beta of 1.64. The stock has a fifty day moving average price of $34.40 and a 200-day moving average price of $41.11. Enphase Energy has a 12 month low of $25.77 and a 12 month high of $73.74.

Enphase Energy (NASDAQ:ENPH - Get Free Report) last released its quarterly earnings results on Tuesday, October 27th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.51 by ($0.10). The business had revenue of $293.33 million for the quarter, compared to analyst estimates of $304.59 million. During the same quarter in the prior year, the company earned $0.90 earnings per share. The company's revenue was down 28.5% on a year-over-year basis. On average, equities research analysts forecast that Enphase Energy will post 0.66 EPS for the current year.

Insiders Place Their Bets

In other Enphase Energy news, Director Richard Mora sold 1,500 shares of the company's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $40.36, for a total transaction of $60,540.00. Following the transaction, the director directly owned 10,422 shares in the company, valued at approximately $420,631.92. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Oppenheimer & Co. Inc. raised its stake in shares of Enphase Energy by 12.0% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 30,199 shares of the semiconductor company's stock valued at $996,000 after acquiring an additional 3,235 shares during the period. James Investment Research Inc. acquired a new stake in shares of Enphase Energy in the 3rd quarter valued at about $964,000. Inspire Investing LLC bought a new stake in shares of Enphase Energy in the 3rd quarter valued at approximately $633,000. Annex Advisory Services LLC bought a new stake in Enphase Energy during the third quarter valued at $495,000. Finally, NFSG Corp acquired a new stake in Enphase Energy during the third quarter worth about $66,000. Hedge funds and other institutional investors own 72.12% of the company's stock.

Enphase Energy News Summary

Here are the key news stories impacting Enphase Energy this week:

• Positive Sentiment: Enphase outlined a plan targeting approximately 50% battery growth in 2027, offering a potential longer-term growth catalyst as the company expands beyond its core microinverter business. Enphase outlines 50% 2027 battery growth plan
• Positive Sentiment: Enphase reported progress on its IQ Solid-State Transformer technology, successfully demonstrating conversion from 13.8 kV AC to 800 VDC. The technology could support future applications in AI data centers and high-power systems, although it is not yet a near-term revenue driver. IQ Solid-State Transformer demonstration
• Positive Sentiment: Goldman Sachs maintained a Buy rating and a $47 price target, citing progress in gallium-nitride bidirectional switches and Enphase’s AI-focused solid-state-transformer strategy. Goldman Sachs maintains Buy rating
• Neutral Sentiment: Management said global sell-through increased only about 1% sequentially in the third quarter, well below its earlier expectation of roughly 10%, leaving revenue near the low end of guidance. Weak sell-through and softer outlook
• Negative Sentiment: Third-quarter revenue fell 28.5% year over year to $293.3 million, while adjusted earnings of $0.41 per share missed the $0.51 consensus estimate. EPS also declined from $0.90 in the year-earlier quarter. Enphase third-quarter financial results
• Negative Sentiment: Fourth-quarter revenue guidance of $225 million to $255 million implies another sequential decline and came in below analysts’ expectations, intensifying concerns about near-term demand. Fourth-quarter revenue guidance
• Negative Sentiment: Oppenheimer downgraded ENPH from Outperform to Market Perform, while GLJ Research reiterated a Sell rating and lowered its price target to $21.49. These rating actions add pressure following the earnings disappointment. Oppenheimer downgrade

Enphase Energy Company Profile

Enphase Energy, Inc develops and manufactures technology for residential and commercial solar energy systems. Its products include solar microinverters, which convert electricity generated by individual solar panels into usable power, along with integrated energy management technologies designed to improve system performance, monitoring and reliability.

The company also offers battery storage systems, electric vehicle chargers and software that enables customers, installers and utilities to monitor and manage distributed energy resources.

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