Enphase Energy Inc. [NASDAQ:ENPH] prices rallied 4.30% on Thursday.
With a current price of $110.04, ENPH is active in the Solar industry and it looks to be on-track for a five-day run of 17.86%.
In addition, ENPH’s high over the last year is $109.80 and the low is $17.18. Over the last two 52 weeks, the company is trading 335.59%, while the S&P 500 is trading 0.5%.
The Price is right
Holding a Market Cap of $13.16 billion, Enphase Energy Inc. has seen a trading range over the last year of $17.18-$109.80.
For the last five days, ENPH is up from its last closing price. The average shares trading hands each day is 3.62M, with average 10-day volume coming in at 4.59 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for ENPH. When we apply the Elder Force Index to Enphase Energy Inc., we are seeing an Elder Force Indicator number of 4758560.14.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. ENPH is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 61.99. Moreover, the company’s enterprise value has gone from $5.84B to $3.90B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, ENPH made a profit of 10.85 million. Enphase Energy Inc. also saw quarter revenue growth year over year of 97.47%. In addition, the company has operating cash flow of $171.88 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 103.75 compared to the 50-day moving average of 76.81. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. ENPH currently holds a 9-day RSI of 84.73%, while 100-day RSI stands at 62.20%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. ENPH’s 9-day MACD is 11.59 and the company’s 100-day MACD stands at 42.57.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 19.75% by insiders and 57.30% by institutions. Regarding institutional holdings, FMR, LLC owns 8.47%, while the second top holder, Vanguard Group, Inc. (The), currently owns 8.08%.
Over the last six months, insiders have sold 7,500 with the most recent transaction from McNeil Jeff, EVP & Chief Operating Officer, with a sell at price 86.50 per share.
Conclusion
Overall, the recommended rating for ENPH is Moderate Buy. Currently, the company has 14 analysts watching the stock, and the average quarterly earnings estimate is 0.24. Quarterly revenue estimates are averaging 168.58M with the high estimate reaching 175.01M and the low at 160.7M.
To review, the current 1-year target estimate is sitting at 78.64, while the current price 110.04. Based on this, we expect some pullback on the stock over time given our above analysis.
