Shares of Enova International, Inc. (NYSE:ENVA) have garnered an average recommendation of “Buy” from analysts covering the company, according to MarketBeat. Eleven ratings firms provided insights, with one analyst suggesting a hold rating, nine advocating for a buy, and one declaring a strong buy. The consensus among brokerages has set the average price target for Enova at approximately $163.67 for the coming year.
Several brokerage firms have recently updated their recommendations for Enova. On October 24, 2023, JMP Securities increased its price target from $135.00 to $149.00, assigning a “market outperform” rating. Conversely, Wall Street Zen adjusted its rating from “strong buy” to “buy” on November 22, 2023. Additionally, TD Cowen raised its target from $175.00 to $180.00 while maintaining a buy rating.
Recent Performance and Financial Metrics
Enova International reported its quarterly earnings on October 23, 2023. The company, a provider of credit services, announced earnings per share (EPS) of $3.36, surpassing the consensus estimate of $3.03 by $0.33. However, Enova’s revenue for the quarter was $460.71 million, falling short of analyst expectations of $806.63 million. The firm demonstrated a net margin of 9.64% and a return on equity of 24.50%, reflecting a 16.3% increase in revenue compared to the same period last year, when it recorded an EPS of $2.45.
Looking ahead, analysts predict that Enova International will post an EPS of $10.31 for the current year.
Share Buyback and Insider Activity
On November 12, 2023, Enova’s Board of Directors approved a significant share repurchase plan, allowing the company to repurchase up to $400 million in shares, which amounts to approximately 12.5% of its stock. This decision typically signals that the board believes the stock is undervalued.
In recent insider trading activities, Steven E. Cunningham, the Chief Financial Officer, sold 14,874 shares on October 29, 2023, at an average price of $120.70, totaling around $1,795,291.80. Following this transaction, Cunningham retained 127,719 shares valued at approximately $15.4 million, representing a 10.43% decrease in his ownership.
Additionally, David Fisher, the Chief Executive Officer, sold 15,000 shares on December 16, 2023, at an average price of $160.24, accumulating approximately $2.4 million. After this sale, Fisher owns 348,223 shares valued at around $55.8 million, marking a 4.13% decrease in his stake. In total, insiders have sold 41,874 shares valued at $5.68 million over the past three months, with insiders currently holding 8.40% of the company’s stock.
Institutional Investor Activity
Institutional investors have been active in adjusting their positions in Enova International. Baird Financial Group Inc. increased its holdings by 0.8% during the second quarter, now owning 155,950 shares valued at $17.39 million. Meanwhile, SG Americas Securities LLC raised its position significantly by 2,933.1%, acquiring 138,975 shares worth $21.85 million.
Other notable movements include Loomis Sayles & Co. L P establishing a new stake valued at around $11.15 million and CX Institutional increasing its stake by 4.2% to 70,352 shares worth $8.1 million. Overall, institutional investors and hedge funds hold approximately 89.43% of Enova International’s stock.
Enova International, based in Chicago, specializes in online lending solutions and has established itself as a key player in the financial services sector since its inception in 2004. The company employs advanced data analytics and technology to provide short-term consumer loans and credit options, catering to a diverse range of borrowers.
