We are going to take a quick look at the recent resignation of Enphase's CFO, Eric Branderiz, to see how it might impact the stock price moving forward.
Here is the quick breakdown of the recent resignation and my thoughts.
On February 2, 2022, Eric Branderiz, Executive Vice President and Chief Financial Officer of Enphase Energy, Inc. (the “Company”), notified the Company of his intention to retire from his position at the Company, effective February 14, 2022. Mr. Branderiz is retiring for personal reasons and there are no disagreements between Mr. Branderiz and the Company on any matters relating to the Company's operations, policies, or practices, including accounting principles and practices. Mr. Branderiz will remain in an advisory capacity to the Company through June 30, 2022 to assist with the transition of his successor.
They have already found a successor for CFO - which is a good sign. Here is the summary from the 8-K filing.
On February 5, 2022, Mandy Yang, who is currently serving as the Company's Vice President, Chief Accounting Officer and Corporate Treasurer, was appointed by the Company's Board of Directors to assume the additional role of Chief Financial Officer, effective February 15, 2022. In this role, Ms. Yang will serve as the Company's principal financial officer and principal accounting officer.
I think this can be viewed as a good sign for ENPH. Sometimes companies need change, especially if recent performance has not been great. I think this change in CFO is a good opportunity for ENPH to take a new look at their strategy from a financial and accounting perspective. Because the old CFO left on good terms, this is a positive indication, and investors are supporting this move, as we see with recent positive price action.
Let's briefly recap earnings expectations ahead of ENPH's upcoming earnings release. Previous earnings, reported Mon Feb 07 2022 19:00:00 GMT-0500 (Eastern Standard Time), was considered a beat. The actual earnings per share was $0.73, a beat by $0.15 compared to estimated earnings of $0.58 per share.
This is huge news, considering it is a substantial beat. We'll have to see if analysts adjust their targets for the next quarter and see if ENPH can beat it again.
From a price performance standpoint, Enphase Energy, Inc. has notched 30 day -3 %, 3 month -41.2 %, and 6 month -24.1 % in price performance.
ENPH's stock shows a slight trending bearish trend with a stock price 30 day price performance of 0.14 %. Over a 52 week period, ENPH traded at $282.46 (high) & $108.88 (low) per share. ENPH is currently trading at 41% below the highest recorded price. Before we get too concerned, let's look at how it performed against it's peers in the same sector.
The recent price action can also be observed from a technical point of view. Looking at the relative strength index, a primary technical indicator to determine if trading activity suggests ENPH is overbought or oversold, we see that ENPH's RSI index score is -100. The score suggests that ENPH is in fact oversold.
Let's talk about ENPH's price performance relative to its peers. Peers in the same industry notched -6.25% 30 day price change, -14.34 % 3 month, and -7.8 % 6 month. This means ENPH performed better than it's peers over the same amount of time - this is a good sign considering the recent downturn in the last 2 months
The price target for ENPH is currently set at $90.53 per share. I think this is too low, and I believe it will be adjusted based on the recent earnings beat.
Quickly looking at some core metrics to determine value I believe ENPH has earned an overall rating of 5/5, a DCF valuation rating of 5/5, as well as a consensus return on equity of 4/5. Here is a link to these metrics, along with a comparison to its peers