Enova International (NYSE:ENVA) Shares Down 6.4% – Here’s Why

Enova International, Inc. (NYSE:ENVA) traded down 6.4% during mid-day trading on Friday. The company traded as low as $166.90 and last traded at $165.4210. 245,439 shares traded hands during trading, a decline of 24% from the average daily volume of 321,571 shares. The stock had previously closed at $176.78.

Key Headlines Impacting Enova International

Here are the key news stories impacting Enova International this week:

• Positive Sentiment: Enova reported third-quarter adjusted earnings of $4.48 per share, exceeding the $4.42 consensus estimate, while revenue reached $1.01 billion versus expectations of approximately $1 billion. Revenue increased 25.7% year over year, and adjusted EPS rose 33%. Enova International quarterly earnings report
• Positive Sentiment: Growth remained broad-based: loan originations increased 31%, and Enova surpassed $1 billion in quarterly revenue for the first time. The company also highlighted a record loan book, supporting expectations for continued revenue momentum. Enova Tops $1 Billion Quarterly Revenue as Online Lending Surges
• Positive Sentiment: Analysts raised their outlooks following the results. Stephens increased its target to $225 and assigned an overweight rating; TD Cowen raised its target to $224 with a buy rating; and Citizens JMP lifted its target to $220 with a market outperform rating. These targets imply roughly 32%–35% upside from the cited share price of $166.14. Stephens Enova International rating
• Neutral Sentiment: Despite the earnings beat, ENVA trades below both its 50-day and 200-day moving averages, suggesting recent market momentum remains weak and that investors may be demanding additional evidence of sustained growth.
• Negative Sentiment: The termination of Enova’s Grasshopper Bank deal remains an overhang. While the quarter’s operating performance was strong, the strategic setback may be prompting investors to reassess the company’s plans for expanding its banking capabilities. Blue Tower on Enova International’s Grasshopper Bank Deal Termination

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Citigroup reissued a “market outperform” rating on shares of Enova International in a research note on Friday. BTIG Research upped their price objective on shares of Enova International from $199.00 to $270.00 and gave the stock a “buy” rating in a report on Tuesday, June 30th. Wall Street Zen lowered Enova International from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 22nd. Zacks Research lowered Enova International from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 16th. Finally, Citizens Jmp increased their price target on shares of Enova International from $215.00 to $220.00 and gave the company a “market outperform” rating in a report on Friday. Eight analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $235.67.

Enova International Stock Down 5.6%

The stock has a market capitalization of $4.15 billion, a P/E ratio of 12.31 and a beta of 1.28. The company has a current ratio of 18.42, a quick ratio of 18.42 and a debt-to-equity ratio of 3.35. The firm’s fifty day moving average is $202.49 and its 200-day moving average is $199.36.

Enova International (NYSE:ENVA) last released its quarterly earnings results on Thursday, October 22nd. The credit services provider reported $4.48 EPS for the quarter, topping analysts’ consensus estimates of $4.42 by $0.06. The business had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1 billion. Enova International had a return on equity of 26.66% and a net margin of 10.31%. Enova International’s revenue for the quarter was up 25.7% on a year-over-year basis. During the same period in the prior year, the company earned $3.36 EPS. As a group, equities research analysts predict that Enova International, Inc. will post 16.33 earnings per share for the current year.

Insider Buying and Selling

In other Enova International news, Chairman David Fisher sold 20,750 shares of the company’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $178.24, for a total transaction of $3,698,480.00. Following the transaction, the chairman directly owned 306,444 shares in the company, valued at approximately $54,620,578.56. This represents a 6.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 39,319 shares of company stock valued at $8,185,473 in the last three months. 8.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Enova International

Large investors have recently bought and sold shares of the business. Amundi raised its position in shares of Enova International by 66.6% during the 2nd quarter. Amundi now owns 207,684 shares of the credit services provider’s stock valued at $49,996,000 after acquiring an additional 83,002 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Enova International during the second quarter worth $38,453,000. Tieton Capital Management LLC bought a new stake in Enova International in the second quarter valued at about $26,577,000. Alyeska Investment Group L.P. acquired a new position in Enova International in the second quarter valued at about $25,749,000. Finally, Assenagon Asset Management S.A. lifted its stake in Enova International by 133.4% in the third quarter. Assenagon Asset Management S.A. now owns 72,385 shares of the credit services provider’s stock valued at $12,096,000 after buying an additional 41,378 shares during the period. 89.43% of the stock is currently owned by institutional investors and hedge funds.

Enova International Company Profile

Enova International, Inc is a financial technology company that provides online financial services to consumers and small businesses. Its offerings include consumer installment loans and lines of credit, as well as small-business financing products designed to provide access to working capital. The company serves customers who may have limited access to traditional bank credit and uses data-driven underwriting and technology-enabled platforms in its lending operations.

Enova markets its products through brands including CashNetUSA and NetCredit, which provide consumer financial services, and OnDeck, which focuses on lending to small businesses.