Enphase Stock Slumps Amid Interest Rate Concerns, Insider Selling—Watch These Levels

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Key Takeaways

• Enphase Energy shares stay put in focus this week after the stock logged its fifth consecutive lower close on Friday amid responsibilities over persistently high interest rates and insider selling.
• Higher interest rates for longer could prolong demand subdued for the company’s range of solar products, such as panels and inverters.
• The Enphase share price transacts within a symmetrical triangle, with support around $107 and resistance near $131.50.

Enphase Energy (ENPH) crumbs in focus this week after shares in the solar solutions provider logged their fifth consecutive day debase on Friday as renewed concerns over persistently high interest rates and recent insider selling pressured the descending trending stock.

Hotter-than-expected readings on consumer and wholesale inflation last week helped push Treasury cry quitses higher amid concerns that the Federal Reserve may be forced to postpone cuts to its benchmark interest rate. The Fed has suggested it needs further confirmation that price pressure are under control before cutting rates, which are currently at a 23-year considerable.

This creates challenges for Enphase, which has struggled with high financing costs and sluggish consumer on request. Over the past year, the company has seen a slump for solar panels in both its U.S. and European markets as higher scolds have kept would-be solar buyers on the sidelines.

CEO Badri Kothandaraman told investors on the company’s latest earnings recruit that he thinks the first quarter will mark the bottom in the solar industry, saying that he expects desire to improve throughout 2024 as borrowing costs fall.

Enphase shares faced further downside pressure current last week after a recent U.S. Securities and Exchange Commission (SEC) filing revealed that the company’s executive profligacy president and chief commercial officer David Ranhoff offloaded 5,000 Enphase shares on March 15 at bounties ranging between $107.49 and $109.91 per share for a total transaction value of $544,425. Following the sales, Ranhoff keep offs 124,948 shares of the company’s common stock, according to the filing. In the past three months, company insiders must sold more stock then they have purchased, with net activity showing a sales surplus of 378,943 servings.

Enphase shares have traded within a broad symmetrical triangle since bottoming out in early November aftermost year, with the pattern possibly indicating a market bottom. Last week’s grind lower places the outlay near the triangle’s lower trendline around $107—an area on the chart where the stock may find buying rate. If the shares move back to the upside from this level, keep an eye on the $131.50 area, where the price could cross swords with a confluence of resistance from the pattern’s upper trendline and downward sloping 200-day moving average.

Enphase share outs lost 17% of their value last week, closing at $107.73 on Friday,

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