Why Enphase Stock Dropped 7% This Morning
With the S&P 500 poised to open lower, shares of solar microinverter-maker Enphase Energy (NASDAQ: ENPH) quickly plunged into the red Thursday morning. But then a miracle happened -- Enphase shares turned around, and pared their loss to just 2.7% in afternoon trading (12:55 p.m. EDT).
Why the drop, and why the reversal? Chances are the initial decline can be chalked up simply to investors "taking profits" after a strong five-day, 20% run.
The June 17 short report from Prescience Point Capital Management targeting Enphase sparked a chorus of endorsements for the stock on Wall Street. And in response to those endorsements, investors flocked back to buy shares of Enphase. Yesterday's sell-off on the Nasdaq may have spooked momentum traders, however, and prepared them to exit Enphase stock this morning.
Source Fool.com