Zacks Research Upgrades Enphase Energy (NASDAQ:ENPH) to Strong-Buy

Key Points

• Zacks Research has upgraded Enphase Energy (NASDAQ:ENPH) from a "hold" rating to a "strong-buy" rating, indicating a more favorable outlook for the company.
• Despite the upgrade, multiple other analysts have lowered their price targets for Enphase, with Bank of America reducing its target from $31.00 to $30.00 and Goldman Sachs slashing it to $32.00.
• Enphase Energy reported earnings of $0.69 per share, exceeding expectations of $0.62 and showing a 19.7% increase in revenue year-over-year, highlighting its robust financial performance.

Enphase Energy (NASDAQ:ENPH - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports.

Other research analysts also recently issued research reports about the company. Bank of America dropped their price objective on Enphase Energy from $31.00 to $30.00 and set an "underperform" rating on the stock in a report on Wednesday, July 23rd. The Goldman Sachs Group reiterated a "sell" rating and set a $32.00 target price (down previously from $77.00) on shares of Enphase Energy in a research note on Wednesday, July 9th. Glj Research upped their price objective on Enphase Energy from $19.80 to $23.49 and gave the company a "sell" rating in a research note on Tuesday, September 23rd. Barclays boosted their target price on Enphase Energy from $28.00 to $29.00 and gave the company an "underweight" rating in a report on Thursday, July 24th. Finally, KeyCorp reissued an "underweight" rating and issued a $31.00 target price on shares of Enphase Energy in a report on Tuesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have issued a Hold rating and twelve have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $55.82.

Enphase Energy Price Performance

Enphase Energy stock opened at $37.74 on Wednesday. The stock has a market cap of $4.93 billion, a P/E ratio of 29.48 and a beta of 1.56. The company has a fifty day simple moving average of $36.02 and a 200-day simple moving average of $43.07. Enphase Energy has a 12-month low of $29.89 and a 12-month high of $109.50. The company has a current ratio of 1.97, a quick ratio of 1.82 and a debt-to-equity ratio of 0.65.

Enphase Energy (NASDAQ:ENPH - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The semiconductor company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.07. The business had revenue of $363.15 million during the quarter, compared to analysts' expectations of $359.14 million. Enphase Energy had a net margin of 11.78% and a return on equity of 24.55%. The company's revenue for the quarter was up 19.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.43 EPS. Enphase Energy has set its Q3 2025 guidance at EPS. Equities analysts expect that Enphase Energy will post 2.08 EPS for the current fiscal year.

Insider Activity

In related news, CEO Badrinarayanan Kothandaraman purchased 5,000 shares of the business's stock in a transaction dated Wednesday, August 6th. The stock was acquired at an average price of $30.82 per share, for a total transaction of $154,100.00. Following the acquisition, the chief executive officer directly owned 1,620,632 shares of the company's stock, valued at $49,947,878.24. This trade represents a 0.31% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Baillie Gifford & Co. increased its holdings in Enphase Energy by 32.0% in the first quarter. Baillie Gifford & Co. now owns 11,052,357 shares of the semiconductor company's stock valued at $685,799,000 after buying an additional 2,680,567 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Enphase Energy by 28.1% during the 2nd quarter. Invesco Ltd. now owns 6,743,674 shares of the semiconductor company's stock worth $267,387,000 after acquiring an additional 1,479,153 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Enphase Energy by 2.1% during the 2nd quarter. Geode Capital Management LLC now owns 3,542,878 shares of the semiconductor company's stock worth $140,217,000 after acquiring an additional 73,459 shares in the last quarter. Federated Hermes Inc. raised its holdings in Enphase Energy by 264.7% during the second quarter. Federated Hermes Inc. now owns 1,477,751 shares of the semiconductor company's stock worth $58,593,000 after purchasing an additional 1,072,602 shares during the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in Enphase Energy by 827.3% during the second quarter. Assenagon Asset Management S.A. now owns 1,152,546 shares of the semiconductor company's stock worth $45,698,000 after purchasing an additional 1,028,259 shares during the last quarter. 72.12% of the stock is owned by hedge funds and other institutional investors.

About Enphase Energy

Enphase Energy, Inc, together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control.

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