Northland Capital named the stock a 'preferred sector pick'
Enphase Energy Inc (NASDAQ:ENPH) is trading 12.8% higher at $54.55 before the bell, surging after news it has joined the Open Compute Project (OCP) as a Platinum Member. This will give the solar giant the ability to assist in developing baseline standards for AI power and infrastructure.
The energy giant was also named a 'preferred sector pick' at Northland Capital, with the firm citing rising energy demand and costs for solar and battery powered storage. There is plenty of room for more bullish attention, with 20 of the 29 covering analysts sporting a "hold" or "strong sell" recommendation.
Enphase energy shares have been falling this month, following a 52-week high of $73.74 on May 29. In fact, before its premarket gains, the stock was headed for its worst monthly loss since October 2023. The equity is still up 50.8% in 2026, however, and the pullback has found recent support at the 100-day moving average.
Options traders have been betting on a rebound. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ENPH's 10-day call/put volume ratio of 6.82 ranks in the 97th annual percentile of its annual range.
Though short interest has been retreating, it still accounts for a hefty 19% of the stock's available float. It would take over three days for shorts to buy back, at ENPH's average pace of trading.
Meanwhile, the stock sports a Schaeffer's Volatility Scorecard (SVS) of 76 out of 100. This suggests the equity has consistently realized higher-than-expected volatility over the past 12 months.