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Options Traders Blast Enphase Energy Stock on Earnings Win

ENPH's upbeat earnings results are boosting the solar sector

Digital Content Manager
Feb 9, 2022 at 10:06 AM
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Enphase Energy Inc (NASDAQ:ENPH) is surging, last seen up 24.4% at $179.70, after reporting blowout fourth-quarter earnings and revenue. Plus, the company raised its fiscal first-quarter revenue outlook, surpassing analysts' expectations while boosting the solar sector. In other news, CFO Eric Branderiz is set to retire, and will be replaced by Mandy Yang effective Feb. 15.

Analysts are chiming in on the results. The security received at least four price-target hikes, including one from J.P. Morgan Securities to $249. Meanwhile, Evercore ISI cut its price objective to $265. Of the 21 firms covering ENPH, 15 call it a "buy" or better, and the 12-month consensus target price of $222.58 is a 24.8% premium to current levels.

It has been a volatile past few months for Enphase Energy stock. Shares more than halved from a Nov. 22, all-time high of $282.46 in late January, but have since started to recover. The $120 level has provided support for ENPH, which is today bursting through overhead pressure at the 30-day moving average. Over the last nine months, the equity has added 52.4%.

Despite calls outnumbering puts on an absolute basis, the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is higher than all but 8% of readings in its annual range. This indicates a strong appetite for puts as of late.

Drilling down to today's options activity, 19,000 calls and 9,629 puts have crossed the tape, which is 16 times the intraday average. Most popular is the 2/11 180-strike call, followed by the February 180 call, with new positions currently being opened at the former. 

 

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