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

Key Points

• Enovix has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a shift in analysts' outlook on the stock.
• The company reported a 98.2% increase in quarterly revenue year-over-year, totaling $7.50 million, while exceeding earnings estimates with a loss of ($0.13) EPS.
• Enovix's Board of Directors has approved a $60 million share buyback plan, generally seen as a sign that management believes its stock is undervalued.

Enovix (NASDAQ:ENVX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

A number of other equities analysts have also commented on ENVX. 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 objective (up previously from $12.00) on shares of Enovix in a research note on Thursday, July 10th. Canaccord Genuity Group raised their price objective on shares of Enovix from $20.00 to $22.00 and gave the stock a "buy" rating in a research note on Monday, August 4th. Craig Hallum reaffirmed a "buy" rating and issued a $15.00 price objective (up previously from $12.00) on shares of Enovix in a research note on Tuesday, July 8th. Finally, TD Cowen raised shares of Enovix to a "hold" rating and raised their price objective for the stock from $7.00 to $15.00 in a research note on Monday, July 7th. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $17.00.

Enovix Price Performance

NASDAQ:ENVX traded down $0.23 during trading hours on Friday, reaching $8.85. 2,110,978 shares of the company's stock were exchanged, compared to its average volume of 6,432,658. The company has a market capitalization of $1.74 billion, a P/E ratio of -10.54 and a beta of 2.08. Enovix has a 12 month low of $5.27 and a 12 month 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. The business's 50-day simple moving average is $11.86 and its two-hundred day simple moving average is $9.14.

Enovix (NASDAQ:ENVX - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported ($0.13) earnings per share for the quarter, topping analysts' consensus estimates of ($0.15) by $0.02. The firm had revenue of $7.50 million during the quarter, compared to analysts' expectations of $5.48 million. Enovix had a negative net margin of 481.35% and a negative return on equity of 73.88%. The firm's revenue for the quarter was up 98.2% compared to the same quarter last year. During the same period last year, the firm posted ($0.14) earnings per share. Enovix has set its Q3 2025 guidance at -0.180--0.140 EPS. Sell-side analysts expect that Enovix will post -1.01 EPS for the current fiscal year.

Enovix announced that its board has initiated a share repurchase program on Wednesday, July 2nd that authorizes the company to repurchase $60.00 million in shares. This repurchase authorization authorizes the company to buy up to 3.1% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Reynders McVeigh Capital Management LLC raised its holdings in shares of Enovix by 11.1% during the 2nd quarter. Reynders McVeigh Capital Management LLC now owns 260,330 shares of the company's stock valued at $2,692,000 after purchasing an additional 26,090 shares in the last quarter. Promus Capital LLC raised its holdings in shares of Enovix by 3,500.0% during the 2nd quarter. Promus Capital LLC now owns 18,000 shares of the company's stock valued at $186,000 after purchasing an additional 17,500 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of Enovix during the 2nd quarter valued at $290,000. Headlands Technologies LLC bought a new position in shares of Enovix during the 2nd quarter valued at $132,000. Finally, Tower Research Capital LLC TRC raised its holdings in shares of Enovix by 121.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 33,431 shares of the company's stock valued at $346,000 after purchasing an additional 18,322 shares in the last quarter. 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.