Enovix (NASDAQ:ENVX) Shares Gap Down - What's Next?

Key Points

• Enovix Corporation's share price gapped down significantly, opening at $11.48 after closing at $13.40, with the last traded price at $10.35 and a trading volume of 7,409,700 shares.
• Wall Street analysts have mixed opinions about Enovix, with one firm increasing its target price to $17.00 while another lowered it to $7.00, reflecting varying sentiments toward the company's performance.
• The company has initiated a stock buyback program allowing repurchases of up to $60 million in outstanding shares, indicating that management believes the stock is currently undervalued.

Enovix Corporation (NASDAQ:ENVX - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $13.40, but opened at $11.48. Enovix shares last traded at $10.35, with a volume of 7,409,700 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on ENVX shares. TD Cowen upgraded shares of Enovix to a "hold" rating and boosted their price target for the stock from $7.00 to $15.00 in a research note on Monday, July 7th. Cowen reissued a "hold" rating on shares of Enovix in a research report on Tuesday, July 8th. Wall Street Zen cut shares of Enovix from a "hold" rating to a "sell" rating in a report on Saturday. TD Securities reduced their target price on shares of Enovix from $10.00 to $7.00 and set a "hold" rating for the company in a report on Thursday, May 1st. Finally, B. Riley reaffirmed a "buy" rating and issued a $17.00 target price (up from $12.00) on shares of Enovix in a report on Thursday, July 10th. 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. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $18.60.

Enovix Stock Down 20.1%

The company has a debt-to-equity ratio of 0.82, a current ratio of 4.37 and a quick ratio of 4.11. The firm's 50-day simple moving average is $10.99 and its two-hundred day simple moving average is $9.36. The company has a market capitalization of $2.10 billion, a price-to-earnings ratio of -12.74 and a beta of 2.11.

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 the consensus estimate 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 company had revenue of $7.50 million for the quarter, compared to analyst estimates of $5.48 million. During the same period in the prior year, the business posted ($0.14) earnings per share. The firm's revenue for the quarter was up 98.2% compared to the same quarter last year. Sell-side analysts predict that Enovix Corporation will post -1.01 EPS for the current fiscal year.

Enovix declared that its Board of Directors has authorized a stock repurchase program on Wednesday, July 2nd that authorizes the company to buyback $60.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 3.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Institutional Trading of Enovix

Large investors have recently modified their holdings of the business. Coppell Advisory Solutions LLC acquired a new stake in shares of Enovix in the fourth quarter valued at approximately $27,000. Stone House Investment Management LLC purchased a new position in shares of Enovix during the first quarter valued at approximately $37,000. Sava Infond d.o.o. lifted its stake in shares of Enovix by 50.0% during the first quarter. Sava Infond d.o.o. now owns 6,000 shares of the company's stock valued at $44,000 after buying an additional 2,000 shares during the period. Parallel Advisors LLC lifted its stake in shares of Enovix by 103.8% during the first quarter. Parallel Advisors LLC now owns 7,557 shares of the company's stock valued at $55,000 after buying an additional 3,849 shares during the period. Finally, HBK Sorce Advisory LLC purchased a new position in shares of Enovix during the first quarter valued at approximately $74,000. 50.92% of the stock is currently owned by institutional investors and hedge funds.

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.