Taking a Closer Look at the Latest Short Interest in Enphase Energy Inc

Enphase Energy Inc: Recent Trends in Short Interest

Enphase Energy Inc (NYSE: ENPH) has experienced a 3.14% increase in short interest as a percentage of its float since the last update. Latest exchange data shows that 31 million shares are currently sold short, representing 32.53% of the company’s available shares for trading. At the current trading volume, it would take investors an average of 4.63 days to cover all short positions.

Understanding the Significance of Short Interest

Short interest refers to the total number of shares that have been borrowed and sold by traders who anticipate a decline in the stock’s price, but have not yet repurchased those shares. Short selling allows traders to profit if the stock price drops, but leads to losses if the price rises.

Monitoring short interest is valuable because it reflects overall market sentiment toward a stock. A rising short interest often indicates growing pessimism among investors, while a decline may suggest increasing optimism.

Short Interest Trends for Enphase Energy Inc (Last 3 Months)

The chart above illustrates that the proportion of Enphase Energy Inc shares sold short has climbed since the previous report. While this does not guarantee an imminent decline in the stock’s price, it does highlight that a larger number of shares are being targeted by short sellers.

How Enphase Energy Inc’s Short Interest Compares to Its Peers

Comparing a company’s performance to similar businesses—known as peers—is a common strategy for analysts and investors. Peers are typically companies in the same industry, with comparable size, age, and financial structure. You can identify peer groups by reviewing a company’s 10-K, proxy statements, or conducting your own research.

According to Benzinga Pro, the average short interest as a percentage of float among Enphase Energy Inc’s peers is 7.24%. This means Enphase Energy Inc has a significantly higher short interest than most similar companies.

This article was produced by Benzinga’s automated content system and reviewed by an editor.