Enphase Energy, Inc. (NASDAQ:ENPH – Get Free Report)’s share price hit a new 52-week low on Wednesday following a weaker than expected earnings announcement. The company traded as low as $23.74 and last traded at $24.8620, with a volume of 2,068,261 shares traded. The stock had previously closed at $29.76.
The semiconductor company reported $0.41 earnings per share for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.10). The company had revenue of $293.33 million during the quarter, compared to the consensus estimate of $304.59 million. Enphase Energy’s revenue was down 28.5% compared to the same quarter last year. During the same period last year, the firm earned $0.90 EPS.
Key Headlines Impacting Enphase Energy
Here are the key news stories impacting Enphase Energy this week:
- Positive Sentiment: Enphase outlined a plan for approximately 50% battery growth in 2027, which could support longer-term diversification beyond its residential microinverter business. Enphase outlines 50% 2027 battery growth plan
- Positive Sentiment: The company reported progress on its IQ Solid-State Transformer technology, successfully demonstrating conversion from 13.8 kV AC to 800 VDC. The technology is aimed in part at emerging AI data-center power applications, though commercialization may take time. Enphase IQ Solid-State Transformer demonstration
- Neutral Sentiment: Analyst views have diverged. Goldman Sachs maintained a $47 buy target before the earnings release, while Bernstein reduced its target to $40 with a market-perform rating. These targets remain above the current share price but reflect substantial uncertainty.
- Negative Sentiment: Third-quarter adjusted EPS was $0.41, below the $0.51 consensus estimate, while revenue of $293.3 million missed the $304.6 million forecast and declined 28.5% year over year. EPS also fell from $0.90 in the comparable period. Enphase Energy third-quarter results
- Negative Sentiment: Fourth-quarter revenue guidance of $225 million to $255 million implies another sequential decline and came in below Wall Street expectations. Management also said global sell-through growth was only about 1% sequentially, well below its earlier 10% expectation.
- Negative Sentiment: Management cited elevated interest rates and the expiration of renewable-energy tax credits as major pressures on U.S. residential demand. Analysts responded with downgrades from Roth Capital, Oppenheimer and Morgan Stanley; Morgan Stanley cut its target to $16 and assigned an underweight rating. Why Enphase Energy stock is sinking
Wall Street Analyst Weigh In
Several research firms have issued reports on ENPH. TD Cowen decreased their price objective on shares of Enphase Energy from $70.00 to $48.00 and set a “hold” rating on the stock in a report on Monday, July 20th. Jefferies Financial Group lowered their price objective on shares of Enphase Energy from $54.00 to $42.00 and set a “buy” rating on the stock in a research report on Monday, September 21st. BMO Capital Markets lowered their target price on shares of Enphase Energy from $37.00 to $28.00 and set a “market perform” rating for the company in a research note on Wednesday, October 21st. Barclays set a $26.00 price target on shares of Enphase Energy in a research report on Wednesday. Finally, UBS Group set a $56.00 target price on shares of Enphase Energy in a research note on Wednesday, July 29th. Seven equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Enphase Energy currently has an average rating of “Hold” and a consensus target price of $38.57.
Get Our Latest Report on Enphase Energy
Insiders Place Their Bets
In related news, Director Richard Mora sold 1,500 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $40.36, for a total value of $60,540.00. Following the sale, the director directly owned 10,422 shares in the company, valued at $420,631.92. This represents a 12.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.90% of the stock is owned by corporate insiders.
Institutional Trading of Enphase Energy
Institutional investors and hedge funds have recently modified their holdings of the business. Oppenheimer & Co. Inc. increased its stake in shares of Enphase Energy by 12.0% in the third quarter. Oppenheimer & Co. Inc. now owns 30,199 shares of the semiconductor company’s stock worth $996,000 after acquiring an additional 3,235 shares during the period. James Investment Research Inc. purchased a new position in shares of Enphase Energy in the 3rd quarter valued at about $964,000. Inspire Investing LLC purchased a new position in shares of Enphase Energy during the third quarter worth about $633,000. Annex Advisory Services LLC purchased a new position in Enphase Energy in the third quarter worth $495,000. Finally, NFSG Corp acquired a new position in shares of Enphase Energy during the 3rd quarter worth $66,000. Institutional investors own 72.12% of the company’s stock.
Enphase Energy Price Performance
The business’s 50-day moving average price is $34.40 and its two-hundred day moving average price is $41.11. The firm has a market cap of $3.35 billion, a price-to-earnings ratio of 25.38 and a beta of 1.64.
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.
Featured Stories
- Five stocks we like better than Enphase Energy
- Is United Parcel Service Finally Turning the Corner?
- Taiwan Semiconductor Flexes Pricing Power on AI’s Frontline
- Hidden in Plain Sight: 2 Earnings Winners Investors May Have Missed
- These 3 New ETFs Are Turning Heads—Are They Worth Buying?
Receive News & Ratings for Enphase Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enphase Energy and related companies with MarketBeat.com's FREE daily email newsletter.
