What Happened?

Shares of home energy technology company Enphase (NASDAQ: ENPH) jumped 5.1% in the morning session after its CEO, Badrinarayanan Kothandaraman, purchased 10,000 shares of company stock. The total investment was valued at $309,317 and signaled strong confidence from the executive. This purchase followed four other instances of the CEO buying stock over the previous year. Adding to the positive news, Enphase announced that its IQ Battery systems were eligible for a rebate program from San Diego Community Power. The program provided residential customers with rebates up to $350 per kilowatt-hour for new solar-plus-battery installations, which could make the company's products more appealing to consumers and help drive sales.

Is now the time to buy Enphase? Access our full analysis report here.

What Is The Market Telling Us

Enphase’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 14.6% on the news that the company provided a weak sales forecast for the fourth quarter and a downbeat outlook for early 2026. While third-quarter revenue of $410.4 million came in ahead of estimates, investors focused on the company's disappointing outlook. Enphase projected fourth-quarter revenue to be between $310 million and $350 million, which fell significantly short of analysts' expectations of $374.4 million. Management pointed to weaker demand, especially in Europe, as a key reason for the lower forecast, noting European revenue had already declined 38% from the previous quarter. Compounding the issue, the company also warned of a "larger-than-normal seasonal decline" in revenue for the first quarter of 2026. This anticipated drop was linked to the expiration of a tax credit, which management called a "near-term headwind." The weak guidance overshadowed the third-quarter beat, driving the negative reaction from investors.

Enphase is down 56% since the beginning of the year, and at $31.37 per share, it is trading 65.1% below its 52-week high of $89.94 from November 2024. Investors who bought $1,000 worth of Enphase’s shares 5 years ago would now be looking at an investment worth $260.81.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.