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 investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Other research analysts have also recently issued research reports about the company. Craig Hallum reaffirmed a "buy" rating and set a $15.00 target price (up previously from $12.00) on shares of Enovix in a research note on Tuesday, July 8th. Canaccord Genuity Group lifted their price objective on shares of Enovix from $20.00 to $22.00 and gave the company a "buy" rating in a report on Monday, August 4th. Benchmark lifted their price objective on shares of Enovix from $15.00 to $25.00 and gave the company a "buy" rating in a report on Friday, July 25th. Cowen reiterated a "hold" rating on shares of Enovix in a report on Tuesday, July 8th. Finally, B. Riley reiterated a "buy" rating and set a $17.00 price objective (up previously from $12.00) on shares of Enovix in a report on Thursday, July 10th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $17.00.

Enovix Price Performance

ENVX stock traded down $1.15 during trading on Friday, hitting $8.00. 38,644,692 shares of the company's stock traded hands, compared to its average volume of 5,734,291. Enovix has a 52 week low of $5.27 and a 52 week high of $16.49. The company has a debt-to-equity ratio of 0.82, a quick ratio of 4.11 and a current ratio of 4.37. The business has a fifty day simple moving average of $11.76 and a 200 day simple moving average of $9.12. The stock has a market capitalization of $1.57 billion, a price-to-earnings ratio of -9.52 and a beta of 2.08.

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

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Deutsche Bank AG increased its position in Enovix by 44.8% during the 4th quarter. Deutsche Bank AG now owns 140,606 shares of the company's stock valued at $1,528,000 after purchasing an additional 43,498 shares during the period. Refined Wealth Management increased its position 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 purchasing an additional 106,843 shares during the period. Strong Tower Advisory Services increased its position in 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. CenterBook Partners LP increased its position in 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. Finally, L & S Advisors Inc increased its position in Enovix by 50.6% during the 1st quarter. L & S Advisors Inc now owns 191,975 shares of the company's stock valued at $1,409,000 after purchasing an additional 64,471 shares during the period. 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.