Enovix Corp ENVX shares are rising in extended trading Monday after the company announced the completion of site acceptance testing for its Fab2 in Malaysia.

What Happened: Enovix said it completed site acceptance testing for its high-volume manufacturing line at Fab2 in late December. The battery manufacturing company plans to begin mass production later this year.

The site acceptance testing validates the readiness of the company’s manufacturing equipment and marks the final stage of factory acceptance testing before commercial-scale production begins. Enovix noted the milestone shows Fab2 is fully equipped to produce high-performance silicon batteries at volume.

“The completion of SAT represents a turning point for Fab2 and for Enovix,” said Raj Talluri, CEO of Enovix.

“It reflects the dedication of our team and our commitment to operational excellence. With significant customer interest in our cutting-edge technology, Fab2 will enable us to meet large-scale production demands while maintaining the highest quality standards.”

See Also: Battery Electric Vehicle Sales To Surge 30%, Capture 17% of Global Light Vehicle Market By 2025: Report

Is ENVX A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — such as Enovix‘s page, for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Enovix does not pay a dividend, but has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Enovix will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ENVX Price Action: Enovix shares were up 5.54% in after-hours, trading at $13.15 at the time of publication Monday, according to Benzinga Pro.

Photo: Piotr Swat via Shutterstock