Enphase Energy (NASDAQ:ENPH) Shares Climb 9.3% - Still a Buy?

Key Points

• Enphase Energy shares rose 9.3% to about $28.03 in mid-day trading, although volume was 83% below the stock’s average daily level.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a $35.11 price target, with recent target reductions ranging from Morgan Stanley’s $16 to Wells Fargo’s $34.
• Enphase missed quarterly expectations, reporting $0.41 in EPS versus $0.51 expected and $293.33 million in revenue versus $304.59 million expected; revenue fell 28.5% year over year.

Enphase Energy, Inc. (NASDAQ:ENPH - Get Free Report)'s stock price shot up 9.3% during mid-day trading on Monday. The stock traded as high as $27.84 and last traded at $28.0310. 1,125,611 shares were traded during trading, a decline of 83% from the average daily volume of 6,462,525 shares. The stock had previously closed at $25.65.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Susquehanna decreased their target price on Enphase Energy from $35.00 to $26.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 28th. Mizuho set a $34.00 price target on Enphase Energy in a research report on Wednesday, October 28th. Morgan Stanley cut their price objective on Enphase Energy from $24.00 to $16.00 and set an "underweight" rating for the company in a report on Wednesday, October 28th. Royal Bank Of Canada decreased their price objective on shares of Enphase Energy from $41.00 to $30.00 and set an "outperform" rating on the stock in a research report on Wednesday. Finally, Wells Fargo & Company lowered their target price on shares of Enphase Energy from $44.00 to $34.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 28th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Enphase Energy has an average rating of "Hold" and an average target price of $35.11.

Enphase Energy Stock Up 11.0%

The company has a quick ratio of 3.56, a current ratio of 4.09 and a debt-to-equity ratio of 0.46. The stock has a 50-day simple moving average of $33.63 and a two-hundred day simple moving average of $40.96. The firm has a market cap of $3.77 billion, a PE ratio of 42.45 and a beta of 1.44.

Enphase Energy (NASDAQ:ENPH - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.51 by ($0.10). The firm had revenue of $293.33 million during the quarter, compared to analysts' expectations of $304.59 million. Enphase Energy had a return on equity of 9.16% and a net margin of 7.49%. Enphase Energy's revenue for the quarter was down 28.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.90 earnings per share. Analysts expect that Enphase Energy, Inc. will post 0.34 earnings per share for the current year.

Insider Buying and Selling

In other Enphase Energy news, Director Richard Mora sold 1,500 shares of Enphase Energy stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $40.36, for a total transaction of $60,540.00. Following the transaction, the director directly owned 10,422 shares of the company's stock, valued at approximately $420,631.92. This trade represents a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.90% of the stock is owned by insiders.

Institutional Trading of Enphase Energy

Several institutional investors have recently added to or reduced their stakes in ENPH. Compass Financial Management LLC purchased a new position in Enphase Energy in the 3rd quarter worth approximately $1,199,000. Hollow Brook Wealth Management LLC purchased a new position in shares of Enphase Energy in the third quarter worth $330,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in Enphase Energy during the 3rd quarter valued at $1,650,000. ProShare Advisors LLC raised its holdings in Enphase Energy by 32.7% during the 3rd quarter. ProShare Advisors LLC now owns 20,437 shares of the semiconductor company's stock valued at $674,000 after buying an additional 5,037 shares during the last quarter. Finally, State of Wyoming bought a new stake in Enphase Energy during the 3rd quarter valued at $52,000. 72.12% of the stock is currently owned by hedge funds and other institutional investors.

About Enphase Energy

Enphase Energy, Inc develops and manufactures technology for residential and commercial solar energy systems. Its products include solar microinverters, which convert electricity generated by individual solar panels into usable power, along with integrated energy management technologies designed to improve system performance, monitoring and reliability.

The company also offers battery storage systems, electric vehicle chargers and software that enables customers, installers and utilities to monitor and manage distributed energy resources.

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