Why Enphase Energy Stock Dropped, Then Jumped Today
The stock of solar power technology and energy storage company Enphase Energy (NASDAQ: ENPH) initially dropped Wednesday before bouncing back as investors digested a capital raise announcement.
Shares were down more than 4% early, before rebounding to a 3.7% gain as of noon EST.
Enphase Energy today announced its intention to issue $1 billion in green convertible senior notes. The company will decide whether to offer the notes based on market conditions, but plans two offerings of $500 million each due in 2026 and 2028. Any conversions of the senior, unsecured notes will be either in cash, common stock, or a combination. The initial reaction to the potential dilution to existing shareholders was negative today. But the fast-growing company could put the capital to good use, likely giving investors a more positive outlook.
Source Fool.com