Insider Activity Report: Enphase Energy (ENPH)

Badrinarayanan Kothandaraman, President and CEO of Enphase Energy (ENPH), recently bought 1,118 shares. The buy increased his stake by less than 1 percent, and came to a total cost just under $101,000.

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  • This is the first insider buy since September, when a company director bought 42,600 shares at a cost of $4 million, at a price about 30 percent higher from where Enphase trades today. Going further back, sellers largely dominated when shares were double their current price.

    Overall, company insiders own about 2.6 percent of shares.

    The home solar energy solutions company is down 70 percent over the past year, as solar has moved out of favor with the market. Higher interest rate costs have made financing home solar projects prohibitively expensive for some buyers.

    Despite that massive slide in shares, revenues are down just 13 percent, and overall earnings are essentially flat, down a mere 1 percent.

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  • Action to take: Shares trade at about 27 times forward earnings, down from over 190 times earnings last year. If Enphase can hold up well in a down market for solar, shares could see a sizeable rebound as the market recovers.

    For traders, shares are off their low and starting to move higher. The March 2024 $125 calls, last going for about $5.35, could see mid-to-high double-digit gains depending on the extent of the recovery rally.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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