Shares of high-performance battery maker Enovix Corp (NASDAQ:ENVX) closed higher Monday as investors positioned themselves ahead of the company’s second-quarter financial results, scheduled for release after the market close on Thursday. Here’s what investors need to know.
Find out what ENVX stock is doing now.
What To Know: The upcoming report follows a month of significant developments that have fueled investor interest. In early July, Enovix announced a special dividend of warrants, granting shareholders one warrant for every seven shares of common stock held.
This move, intended to help fund the expansion of its Fab2 production facility, triggered a surge in buying as it created a potential short squeeze. With a reported 30% of its public float held short, traders who had bet against the stock were likely pressured to buy back shares to cover their positions before the July 17 record date.
For Thursday’s report, Wall Street analysts are expecting revenue of approximately $5.57 million and a loss of 17 cents per share. This falls within the company's previously issued guidance for the quarter, which projected revenue between $4.5 million and $6.5 million and an adjusted loss of 15 cents to 21 cents per share. In the first quarter, Enovix posted a beat, reporting revenue of $5.1 million against estimates of $4.61 million.
Analyst sentiment has been largely positive in July, with firms like Benchmark and B. Riley Securities reiterating Buy ratings and increasing their price targets to $25 and $17, respectively. Investors will be closely watching Thursday’s results for continued progress on its smartphone battery commercialization and defense contracts.
Benzinga Edge Rankings: Based on Benzinga Edge rankings, which provide four critical scores to help identify the strongest and weakest stocks, Enovix presents a distinct profile. The company scores highly on Momentum with a rating of 64.58, indicating significant positive price movement and strong investor interest recently.
In sharp contrast, it has a very low Value score of just 4.67, suggesting that the stock may be considered overvalued based on its underlying financial metrics.
ENVX Price Action: According to data from Benzinga Pro, Enovix shares closed higher by 2.52% to $15.06 on Monday. The stock has a 52-week high of $16.49 and a 52-week low of $5.27.
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.
In the case of Enovix, which was trading at $15.09, $100 would buy you 6.63 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 from the share price decline.
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