Why Enphase Energy Stock Is Charging Today

Enphase Energy, Inc. ENPH shares are trading higher Wednesday after the company reported its fourth-quarter financial results after the bell Tuesday.

The Details:

Enphase shares are trading higher due in part to an upgrade from Oppenheimer analyst Colin Rusch who upgraded the stock from Perform to Outperform and announced a $133 price target on Wednesday.

Additionally, BMO Capital analyst Ameet Thakkar maintained Enphase Energy with a Market Perform and raised the price target from $106 to $110 following the earnings report.

Enphase Energy reported quarterly adjusted earnings of 54 cents per share, which missed the analyst consensus estimate of 55 cents by 1.82% and is a 64.24% decrease over earnings of $1.51 per share from the same period last year.

The company reported quarterly revenue of $302.57 million, missing the analyst consensus estimate of $328.25 million by 7.82% and representing a 58.25% decrease over sales of $724.65 million year-over-year.

Enphase Energy sees first-quarter revenue between $260 million and $300 million, short of the $319.418 million estimate.

“As part of our plan to streamline manufacturing, we are ceasing operations at our contract manufacturing locations in Romania and Wisconsin. We will focus on manufacturing microinverters in the United States with our two existing contract manufacturing partners in South Carolina and Texas,” explained Enphase CEO Badri Kothandaraman.

According to data from Benzinga Pro, 9.11% of Enphase shares are being sold short which may be contributing to the stock’s large move.

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ENPH Price Action: According to Benzinga Pro, Enphase Energy shares are trading up 15.5% at $116.12 at the time of publication.

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