Shares of Enphase Energy (NASDAQ:ENPH) are 15.1% lower to trade at $25.27, after the company unveiled disappointing quarterly results alongside a grim outlook. Third-quarter earnings came in at $0.41 per share on $293.3 million in revenue, missing estimates. The event trigged a downgrade out of Oppenheimer to "perform" from "outperform," the firm citing a weak recovery in its core business and removing its price target.
No fewer than nine analysts have trimmed their price-targets, with Morgan Stanley issuing the lowest to $16 to $24. Plus, the consensus 12-month price target of $36.81 is a 46.5% premium from the solar equipment maker's current perch.
Today's sharp pullback has ENPH trading back at its Covid-era, six-year lows and poised to log a third-straight daily decline. The shares are now 65.7% off its annual high of $73.74 while short interest is elevated by 23%.
Put traders have been betting on continued downside. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Enphase Energy stock's 10-day put/call volume ratio ranks in the 96th percentile of its annual range. This indicates puts have been picked up at a faster-than-usual pace relative to calls during the past 10 weeks.
