Enphase Energy, Inc. (NASDAQ:ENPH) Stock: A Value Gem With Upside Catalysts

Taking into account all relevant factors, Enphase Energy, Inc. (NASDAQ:ENPH) scores 88% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for ENPH averaged 100% Buy with an average daily trading volume over the past 20 days at 5015281 shares. Those using medium-term investment strategies, the shares have overall a 0.5% Buy signal while the 50-day average daily volume remained almost 5016134 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 5540837 shares, is signaling100% Buy for long term investors.

The stock is lingering around the initial support level of $29.42. After this, the following support is at the zone of $28.69. Up until the time the ENPH stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 69.18 on the daily chart, and this may be a cause for concern. In case the price goes below $28.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $30.63 level may cause a pull-back move approaching $31.11 mark.

Enphase Energy, Inc. (ENPH) is most likely going to rise 2.05 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $40 as 12-month high price target. This represents a whopping 30.42 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $30, which means a return possibility of -2.18 percent in comparison with the closing price of the stock of $30.67 in recent trading session. The lowest price set for the stock is $28 which is just above -8.71 percent from ENPH share’s price at the end of session.

Let’s take a glimpse at some insider activity at Enphase Energy, Inc. (NASDAQ:ENPH) and observe the pattern. The earliest insider trade happened on 12/10/2019. RANHOFF DAVID A parted with a total of 50 thousand shares of the firm at average share price of $24.05. The total amount for the sale was set at $1.2 million. On completing this exchange, the VP & Chief Commercial Officer account balance was 632.1 thousand shares. The stock grew 23.62 percent from that insider sale. On 12/10/2019, McNeil Jeff, COO, did a sale of 7.5 thousand shares at a price of $24.02 per share. This got rid of 180.15 thousand shares from the insider’s fortune and the stock experienced a 23.77 percent rally in price since the news became public. This exchange saw 297.54 thousand shares get out from the COO account. On 11/25/2019, COO McNeil Jeff recorded a sale transaction valued at $140.14 thousand. The sale at $20.02 a share has eliminated 7 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 48.5 percent increase since the transaction reporting date. The company insider is left with 305.04 thousand shares remaining in the account. Branderiz Eric, who works as VP & CFO at the company, performed a purchase of 10 thousand shares in a transaction worth $177 thousand. The acquisition recorded on 11/21/2019 was priced at $17.7 per share. The stock price soared 67.97 percent since the transaction. Branderiz Eric currently holds a stake of 392.25 thousand in ENPH stock which is worth $12.03 million after the insider buying.

In the recent trading session, Enphase Energy, Inc. (NASDAQ:ENPH) shares gained 1.71% or 0.51 points to reach at $30.67 with a thin trading volume of 978.93 thousand shares. It opened the trading session at $29.98, the shares rose to $30.3701 and dropped to $29.16, the range by which the price of stock traded the whole session. The company now has a market cap of $3.8 billion and currently has 126.06 million outstanding shares. Enphase Energy, Inc. (ENPH) stock has accumulated 22.5 percent of market value in 21 trading days.

Stock analysts at Goldman, assumed coverage of shares of Enphase Energy, Inc. (NASDAQ:ENPH) with Buy recommendation, according to their opinion released on December 03. Analysts at H.C. Wainwright issued an upgrade for the stock to Buy from previous rating of Neutral, in a research note that dated back to July 31.

ENPH stock’s trailing 3-year beta is 0.95, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.35 share in the trailing 52 weeks. The stock’s value surged 15.42 percent year to date (YTD) compared to a rise of 390.41 percent in 52 week’s period. The firm’s shares are still trading -13.4 percent below its 1-year high of $35.42 and 402.87 percent up from 52-week low of $6.10. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Enphase Energy, Inc. (ENPH) shares are trading at a P/E ratio of 88.67 times earnings posted in the trailing 12 months. The industry ENPH deals with has an average P/E of 46.95. Its P/B ratio is standing at 74.46X compared to the 15.1 industry average. It is additionally sporting a 5.37 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.3. Enphase Energy, Inc. has a 33.9% gross profit margin, with its operating margin around 12.5%. Alongside this, the company’s net profit margin currently stands at 8.9%.

Past records have indicated that shares in Enphase Energy, Inc. rose on 14 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of ENPH’s Q4 earnings on February 26. Analysts are predicting revenue to climb 122.4 percent to $205M in the financial fourth quarter, while EPS will soar by about 725 percent to $0.33 per share. In the last quarter, it’s earnings of $0.3 per share came better than the $0.12771, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $92.29M, topping the $85.4M analysts had expected. Earnings are seen to rise by 12.4 percent this year, 15.9 percent in the coming year.