What's Going On With Enovix Stock?

Enovix Corp ENVX shares are trading higher Tuesday morning, adding to strong gains to start the week after the company announced preliminary second-quarter results and declared a special dividend.

The stock is also gaining on Tuesday after Craig-Hallum analyst Anthony Stoss maintained Enovix with a Buy and raised the price target from $12 to $15.

What To Know: The battery maker on Monday reported preliminary revenue of $7.5 million, surpassing its $4.5 million to $6.5 million guidance and nearly doubling on a year-over-year basis.

The company said it expects to post a third consecutive quarter of positive non-GAAP gross profit at $1.2 million and a non-GAAP net loss of 15 cents per share. The strong performance coincided with the launch of its “AI-1” battery platform, designed for the next generation of AI-powered smartphones, with samples already sent to a major manufacturer.

Additionally, in a move to reward investors and fortify its balance sheet, Enovix declared a special dividend of warrants. Shareholders as of July 17 will receive one warrant for every seven shares of common stock held. Each warrant allows the holder to purchase one share at $8.75.

CFO Ryan Benton stated the dividend provides “meaningful flexibility” and “immediate gain” for shareholders. If exercised, the warrants could raise up to $253.8 million, funding the expansion of its Fab2 production facility and accelerating customer adoption. The warrants are expected to trade on the Nasdaq under the ticker “ENVXW.”

Benzinga Edge Rankings: Based on the latest Benzinga Edge rankings, a tool designed to identify the strongest and weakest stocks, Enovix displays a mixed profile. The company scores moderately well on Momentum with a rating of 27.81, indicating strong recent price performance and investor interest.

Conversely, its Value score is significantly lower at 5.21, suggesting that the stock may be considered overvalued based on its underlying financial metrics.

Price Action: According to data from Benzinga Pro, Enovix shares are trading higher by 1.8% to $13.27 Tuesday morning. The stock has a 52-week high of $18.68 and a 52-week low of $5.27.

Read Also: Enovix Declares Shareholder Warrant Dividend

How To Buy ENVX Stock

By now you're likely curious about how to participate in the market for Enovix – 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.

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.

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