What's Going On With Enphase Energy (ENPH) Stock?

Zinger Key Points
  • Enphase Energy shares are trading lower by 7.2% to $113.20 during Wednesday's session.
  • Stocks across sectors are lower Wednesday following hotter-than-expected March inflation data.

Enphase Energy Inc ENPH shares are trading lower by 7.2% to $113.20 during Wednesday’s session amid overall market weakness. Major indexes are lower Wednesday following hotter-than-expected March inflation data.

In March, inflation in the United States surpassed economist expectations, with the annual Consumer Price Index (CPI) rising to 3.5%, exceeding the previous month’s rate of 3.2%. This unexpected increase marked the second consecutive month of growth, disappointing investors who had anticipated Federal Reserve interest rate cuts.

Furthermore, the monthly CPI growth of 0.4% surpassed forecasts of 0.3%, indicating sustained inflationary pressures…Read More

Why This Matters

Inflation typically leads to higher input costs for companies. Enphase Energy, being in the energy sector, may face increased costs for raw materials, labor, and other operational expenses. This can eat into their profit margins and dampen investor sentiment.

Higher inflation can also erode consumers’ purchasing power, leading to reduced demand for products and services, including renewable energy solutions like those provided by Enphase Energy. If consumers have less disposable income due to rising prices, they may delay or cancel purchases of solar panels and related products.

See Also: Fitch Revises China’s Credit Outlook To Negative Amid Economic Challenges

Is ENPH A Good Stock To Buy?

By now you're likely curious about how to participate in the market for Enphase Energy – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Enphase Energy, which is trading at $114.98 as of publishing time, $100 would buy you 0.87 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, ENPH has a 52-week high of $13.44 and a 52-week low of $2.26.

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