Enovix (NASDAQ:ENVX) Rating Lowered to Sell at Wall Street Zen

Key Points

• Enovix has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, raising concerns about the company's financial outlook.
• Recent earnings results showed Enovix reporting a revenue of $7.50 million for the quarter, significantly beating analyst expectations, although it continues to experience negative margins.
• The company has initiated a $60 million share repurchase plan, suggesting that its leadership perceives the shares as undervalued amidst a mixed rating environment from analysts.

Enovix (NASDAQ:ENVX - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

ENVX has been the topic of a number of other reports. JPMorgan Chase & Co. restated a "neutral" rating and set a $12.00 target price (up from $9.00) on shares of Enovix in a research note on Thursday, July 24th. Cowen restated a "hold" rating on shares of Enovix in a research note on Tuesday, July 8th. B. Riley reaffirmed a "buy" rating and issued a $17.00 price target (up from $12.00) on shares of Enovix in a report on Thursday, July 10th. Benchmark upped their price target on Enovix from $15.00 to $25.00 and gave the company a "buy" rating in a report on Friday, July 25th. Finally, Craig Hallum reaffirmed a "buy" rating and issued a $15.00 price target (up from $12.00) on shares of Enovix in a report on Tuesday, July 8th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $18.91.

Enovix Price Performance

Enovix stock traded up $0.28 during trading on Friday, reaching $11.27. The company had a trading volume of 7,062,952 shares, compared to its average volume of 6,554,553. The firm's 50-day simple moving average is $11.06 and its 200 day simple moving average is $9.36. Enovix has a 1-year low of $5.27 and a 1-year high of $16.49. The firm has a market capitalization of $2.16 billion, a PE ratio of -13.42 and a beta of 2.11. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.11 and a current ratio of 4.37.

Enovix (NASDAQ:ENVX - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported ($0.13) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.15) by $0.02. Enovix had a negative net margin of 481.35% and a negative return on equity of 73.88%. The firm had revenue of $7.50 million during the quarter, compared to analyst estimates of $5.48 million. During the same quarter in the prior year, the firm posted ($0.14) earnings per share. Enovix's quarterly revenue was up 98.2% on a year-over-year basis. As a group, equities research analysts anticipate that Enovix will post -1.01 earnings per share for the current fiscal year.

Enovix declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 2nd that permits the company to repurchase $60.00 million in shares. This repurchase authorization permits the company to buy up to 3.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its stock is undervalued.

Institutional Trading of Enovix

Institutional investors have recently modified their holdings of the company. tru Independence LLC lifted its stake in Enovix by 0.4% in the 2nd quarter. tru Independence LLC now owns 295,690 shares of the company's stock worth $3,057,000 after acquiring an additional 1,155 shares in the last quarter. Intellectus Partners LLC raised its stake in shares of Enovix by 1.2% during the 2nd quarter. Intellectus Partners LLC now owns 103,522 shares of the company's stock worth $1,070,000 after purchasing an additional 1,200 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of Enovix by 6.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 21,413 shares of the company's stock worth $233,000 after purchasing an additional 1,336 shares in the last quarter. Teacher Retirement System of Texas raised its stake in shares of Enovix by 5.7% during the 2nd quarter. Teacher Retirement System of Texas now owns 24,606 shares of the company's stock worth $254,000 after purchasing an additional 1,336 shares in the last quarter. Finally, Wealthcare Advisory Partners LLC raised its stake in shares of Enovix by 8.2% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 22,640 shares of the company's stock worth $234,000 after purchasing an additional 1,714 shares in the last quarter. Hedge funds and other institutional investors own 50.92% of the company's stock.

About Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.