A look into Enphase Energy Inc. (ENPH)’s deeper side

Enphase Energy Inc. (NASDAQ: ENPH) stock fell -3.93% on Tuesday to $219.47 against a previous-day closing price of $228.44. With 5.95 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.81 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $223.95 whereas the lowest price it dropped to was $215.28. The 52-week range on ENPH shows that it touched its highest point at $339.92 and its lowest point at $113.40 during that stretch. It currently has a 1-year price target of $316.28. Beta for the stock currently stands at 1.42.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ENPH was down-trending over the past week, with a drop of -12.58%, but this was down by -30.79% over a month. Three-month performance dropped to -12.91% while six-month performance rose 0.42%. The stock gained 74.15% in the past year, while it has lost -17.17% so far this year. A look at the trailing 12-month EPS for ENPH yields 2.05 with Next year EPS estimates of 5.29. For the next quarter, that number is 1.25. This implies an EPS growth rate of 7.80% for this year and 19.15% for next year. EPS is expected to grow by 38.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.50%.

Float and Shares Shorts:

At present, 135.63 million ENPH shares are outstanding with a float of 133.17 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.45 million, which was 3.28% higher than short shares on Sep 14, 2022. In addition to Mr. Badrinarayanan Kothandaraman as the firm’s Pres, CEO & Director, Mr. David A. Ranhoff serves as its Exec. VP & Chief Commercial Officer.


Institutional Ownership:

Through their ownership of 74.71% of ENPH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.00% of ENPH, in contrast to 30.87% held by mutual funds. Shares owned by individuals account for 17.05%. As the largest shareholder in ENPH with 10.91% of the stake, The Vanguard Group, Inc. holds 14,834,441 shares worth 14,834,441. A second-largest stockholder of ENPH, BlackRock Fund Advisors, holds 8,756,294 shares, controlling over 6.44% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ENPH, holding 5,248,306 shares or 3.86% stake. With a 3.04% stake in ENPH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,132,283 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.33% of ENPH stock, is the second-largest Mutual Fund holder. It holds 3,163,826 shares valued at 838.29 million. Vanguard 500 Index Fund holds 2.31% of the stake in ENPH, owning 3,141,918 shares worth 832.48 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ENPH since 33 analysts follow the stock currently. There are 20 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ENPH analysts setting a high price target of $379.00 and a low target of $236.00, the average target price over the next 12 months is $319.15. Based on these targets, ENPH could surge 72.69% to reach the target high and rise by 7.53% to reach the target low. Reaching the average price target will result in a growth of 45.42% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ENPH will report FY 2022 earnings on 02/07/2024. Analysts have provided yearly estimates in a range of $4.62 being high and $2.43 being low. For ENPH, this leads to a yearly average estimate of $4.29. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Enphase Energy Inc. surprised analysts by $0.16 when it reported $1.25 EPS against a consensus estimate of $1.09. The surprise factor in the prior quarter was $0.21. Based on analyst estimates, the high estimate for the next quarter is $1.46 and the low estimate is $1.06. The average estimate for the next quarter is thus $1.28.

Summary of Insider Activity:

Insiders traded ENPH stock several times over the past three months with 5 Buys and 45 Sells. In these transactions, 193,000 shares were bought while 231,128 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 145 over the past year. The total number of shares bought during that period was 955,359 while 962,425 shares were sold.

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