Enovix (NASDAQ:ENVX) Shares Gap Down - Should You Sell?

Key Points

• Enovix Corporation's shares gapped down significantly from a previous close of $9.15 to an opening price of $7.89, trading at $8.12 with substantial volume on Thursday.
• Analysts have set mixed price targets for Enovix, with estimates ranging from $15.00 to $25.00, but the stock currently holds a "moderate buy" rating overall.
• The company recently initiated a $60 million stock repurchase plan, indicating management's belief that the stock is undervalued despite recent declines in share price.

Enovix Corporation (NASDAQ:ENVX - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $9.15, but opened at $7.89. Enovix shares last traded at $8.12, with a volume of 10,795,469 shares traded.

Analysts Set New Price Targets

ENVX has been the topic of a number of research reports. Canaccord Genuity Group raised their price target on Enovix from $20.00 to $22.00 and gave the stock a "buy" rating in a research note 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 research note on Friday, July 25th. TD Cowen raised Enovix to a "hold" rating and increased their price target for the stock from $7.00 to $15.00 in a report on Monday, July 7th. Cowen reiterated a "hold" rating on shares of Enovix in a research note on Tuesday, July 8th. Finally, Wall Street Zen downgraded Enovix from a "hold" rating to a "sell" rating in a research note on Saturday, September 6th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $17.00.

Enovix Stock Down 12.8%

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 company has a market capitalization of $1.57 billion, a price-to-earnings ratio of -9.50 and a beta of 2.08. The stock's fifty day moving average price is $11.82 and its 200-day moving average price is $9.14.

Enovix (NASDAQ:ENVX - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported ($0.13) EPS for the quarter, beating 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 firm had revenue of $7.50 million for the quarter, compared to the consensus estimate of $5.48 million. During the same period in the previous year, the company earned ($0.14) earnings per share. The company's quarterly revenue was up 98.2% on a year-over-year basis. Enovix has set its Q3 2025 guidance at -0.180--0.140 EPS. On average, sell-side analysts predict that Enovix Corporation will post -1.01 earnings per share for the current fiscal year.

Enovix announced that its board has initiated a stock repurchase plan on Wednesday, July 2nd that allows the company to repurchase $60.00 million in shares. This repurchase authorization allows the company to reacquire up to 3.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Enovix

Several large investors have recently bought and sold shares of the stock. Kingstone Capital Partners Texas LLC purchased a new stake in Enovix in the 2nd quarter worth about $13,206,000. Electron Capital Partners LLC increased its holdings in Enovix by 18.6% in the 1st quarter. Electron Capital Partners LLC now owns 6,712,763 shares of the company's stock worth $49,272,000 after acquiring an additional 1,054,029 shares during the last quarter. CenterBook Partners LP increased its holdings in Enovix by 71.0% in the 1st quarter. CenterBook Partners LP now owns 1,736,570 shares of the company's stock worth $12,746,000 after acquiring an additional 721,309 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in Enovix by 65.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,137,777 shares of the company's stock valued at $8,351,000 after buying an additional 449,934 shares in the last quarter. Finally, Nuveen LLC purchased a new position in Enovix during the 1st quarter valued at about $3,030,000. 50.92% of the stock is currently owned by institutional investors.

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.

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