Enovix (NASDAQ:ENVX) Downgraded by Wall Street Zen to Sell

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 Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also commented on ENVX. TD Cowen upgraded shares of Enovix to a "hold" rating and increased their price target for the stock from $7.00 to $15.00 in a research note on Monday, July 7th. Cowen reaffirmed 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 previously from $12.00) on shares of Enovix in a research note on Thursday, July 10th. Benchmark upped their price target on shares of Enovix from $15.00 to $25.00 and gave the company a "buy" rating in a research note on Friday, July 25th. Finally, TD Securities reduced their price objective on shares of Enovix from $10.00 to $7.00 and set a "hold" rating on the stock in a research note on Thursday, May 1st. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and six have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $18.90.

Enovix Price Performance

Shares of Enovix stock traded up $0.24 on Friday, hitting $11.51. 3,198,875 shares of the company were exchanged, compared to its average volume of 6,531,793. The stock has a market capitalization of $2.26 billion, a price-to-earnings ratio of -13.71 and a beta of 2.11. The company has a 50-day moving average price of $11.12 and a 200 day moving average price of $9.37. Enovix has a 1-year low of $5.27 and a 1-year high of $16.49. The company has a quick ratio of 4.11, a current ratio of 4.37 and a debt-to-equity ratio of 0.82.

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

Enovix declared that its board has initiated a share buyback program on Wednesday, July 2nd that permits the company to buyback $60.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 3.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Enovix

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Deutsche Bank AG increased its position in shares of Enovix by 44.8% in the fourth quarter. Deutsche Bank AG now owns 140,606 shares of the company's stock worth $1,528,000 after purchasing an additional 43,498 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Enovix by 15.1% during the fourth quarter. Vanguard Group Inc. now owns 15,773,464 shares of the company's stock valued at $171,458,000 after buying an additional 2,063,631 shares during the period. Refined Wealth Management lifted its stake in Enovix by 18.8% during the 1st quarter. Refined Wealth Management now owns 675,449 shares of the company's stock valued at $4,958,000 after acquiring an additional 106,843 shares during the period. Strong Tower Advisory Services grew its stake in shares of Enovix by 93.1% during the 1st quarter. Strong Tower Advisory Services now owns 144,045 shares of the company's stock valued at $1,057,000 after purchasing an additional 69,435 shares during the period. Finally, CenterBook Partners LP grew its stake in shares of Enovix by 71.0% during the 1st quarter. CenterBook Partners LP now owns 1,736,570 shares of the company's stock valued at $12,746,000 after purchasing an additional 721,309 shares during the period. 50.92% of the stock is owned by hedge funds and other institutional investors.

Enovix Company Profile

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.