Please ensure Javascript is enabled for purposes of website accessibility

Why Enphase Energy Inc's Shares Popped 15% Today

By Travis Hoium - Updated Sep 27, 2018 at 4:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Add another to the growing list of Enphase Energy customers.

What happened 

Shares of microinverter manufacturer Enphase Energy Inc (ENPH -4.28%) jumped as much as 14.8% in trading Thursday after announcing a new residential solar partner. Shares settled down somewhat late in the day but were still up 8.8% at 3:40 p.m. EDT. 

So what

Enphase and Sunpro Solar, who was ranked the 11th biggest residential solar provider in the U.S., announced an exclusive supply agreement. Enphase will be Sunpro's exclusive inverter supplier, adding another big customer for the company's microinverter solutions. 

Large roof with solar panels.

Image source: Getty Images.

Sunpro's CEO Marc Jones said he was excited about Enphase's roadmap and thinks next-generation inverters will allow for inexpensive transitions between grid-ties and off-grid operation of solar systems. 

Now what

Adding the 11th largest residential solar installer to the portfolio may not sound like a big deal, but every customer adds to Enphase Energy's scale. Another encouraging sign is customers being excited about Enphase's eighth-generation inverters, which will help incorporate solar as well as energy storage in the home. I don't think this announcement alone is a great reason to buy the stock, but along with positive news like a partnership with SunPower and growing sales, Enphase Energy looks to be on the right track in 2018. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Enphase Energy, Inc. Stock Quote
Enphase Energy, Inc.
ENPH
$151.03 (-4.28%) $-6.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.