Q2 STOCKS TO BUY

Analyst Upgrade Draws Call Traders to Solar Stock

Calls are running at triple the intraday average

Digital Content Manager
Mar 20, 2023 at 10:16 AM
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Enphase Energy Inc (NASDAQ:ENPH) stock is getting a jolt this morning, last seen up 6.6% at $195.79, after Raymond James upgraded it to "outperform" from "market perform." Plus, the brokerage set a price target of $225 that is a 22.5% premium to the security's last close, noting its free cash flow yield of 4% makes capital returns possible "for the first time ever." The analyst in question also praised the solar concern's expansion into European markets.

Options bulls are already blasting ENPH, with 12,000 calls across the tape so far -- triple the intraday average -- compared to just 5,116 puts. Most popular is the weekly 3/24 200-strike call, followed by the June 310 call, with new positions now being opened at both. 

This penchant for bullish bets has been the norm for quite some time, per ENPH's 50-day call/put volume ratio of 1.44 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 92% of readings from the past year. 

Enphase Energy stock is still trading firmly below the 20-day moving average, after last week slipping to its lowest level since July. The shares could snap a three-day losing streak today, however, and are clinging to a 6.1% year-over-year gain despite shedding 26.7% so far in 2023.
 
 

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