Shares of Enova International, Inc. (NYSE:ENVA) have received a consensus recommendation of “Buy” from six analysts currently covering the stock, according to a report by MarketBeat.com. Among these analysts, five have assigned a buy rating, while one has designated the stock as a strong buy. The average price target over the next year among brokerages that have recently updated their assessments is $188.00.
Multiple analysts have recently expressed their views on Enova International. Notably, Zacks Research upgraded the stock from a “hold” to a “strong buy” in a report released on January 30, 2024. Similarly, BTIG Research reaffirmed its buy rating and set a price target of $199.00 on January 28, 2024. Additionally, Citizens JMP increased its target price from $180.00 to $182.00, while Maxim Group established a target of $191.00. In contrast, Wall Street Zen downgraded the rating from strong buy to buy on November 22, 2023.
Institutional Investments and Shareholder Activity
Recently, several institutional investors have adjusted their stakes in Enova International. FNY Investment Advisers LLC acquired a new position in the company during the fourth quarter, valued at approximately $31,000. In the third quarter, Pacer Advisors Inc. also acquired shares worth $28,000. Bessemer Group Inc. significantly increased its position by 174.2%, now holding 255 shares valued at $30,000 after purchasing an additional 162 shares. Furthermore, Strs Ohio initiated a new position valued at about $35,000 during the same quarter. Farther Finance Advisors LLC raised its stake by 26.9%, owning 302 shares worth $47,000 after acquiring 64 additional shares. Collectively, institutional investors and hedge funds own 89.43% of the company’s stock.
Stock Performance and Financial Outlook
As of Tuesday, Enova International shares opened at $139.00. The company exhibits strong liquidity with a quick ratio of 19.29 and a current ratio of 9.48. Its debt-to-equity ratio stands at 3.37. Over the past year, the stock has fluctuated between a low of $79.41 and a high of $176.68. The fifty-day moving average is $156.61, while the two-hundred-day moving average is $134.85. The company’s market capitalization is approximately $3.48 billion, with a price-to-earnings ratio of 12.00.
In its latest earnings report posted on January 27, 2024, Enova International reported earnings per share (EPS) of $3.46, surpassing analysts’ expectations of $3.17 by $0.29. The company achieved a return on equity of 25.31% and a net margin of 9.78%. Revenue for the quarter reached $1.34 billion, significantly exceeding the forecast of $838.59 million. This marks a 15.0% increase compared to the same quarter last year, when the EPS was $2.61. Analysts anticipate that Enova International will post an EPS of $10.31 for the current fiscal year.
On November 12, 2023, the company’s board authorized a stock buyback program, enabling the purchase of up to $400.00 million in outstanding shares, which represents up to 12.5% of its stock. Such buyback initiatives often indicate that management believes the stock is currently undervalued.
Founded in 2004, Enova International, Inc. is headquartered in Chicago and specializes in online lending solutions. The company utilizes proprietary data analytics and technology platforms to provide a variety of short-term consumer loans, lines of credit, and installment loans. Its flagship consumer brand, NetCredit, offers flexible credit options tailored to a diverse range of borrowers, including those with limited or non-traditional credit histories.
