5 Worst Performing NASDAQ Stocks In 2023

4. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 55

YTD Share Price Decline as of July 30: 39.07%

Enphase Energy, Inc. (NASDAQ:ENPH), an American provider of home energy solutions for the solar photovoltaic industry, ranks 4th on our list of the worst performing NASDAQ stocks in 2023. On July 28, Enphase Energy, Inc. (NASDAQ:ENPH) experienced a 10.2% drop in early trading after failing to meet Q2 revenue expectations and providing disappointing guidance for Q3 revenues. Following this, Deutsche Bank downgraded Enphase Energy, Inc. (NASDAQ:ENPH) from Buy to Hold and adjusted their price target from $200 to $165, citing increased caution about the company’s growth prospects over the next 6-12 months.

According to Insider Monkey’s first quarter database, 55 hedge funds held stakes in Enphase Energy, Inc. (NASDAQ:ENPH), down from 63 funds in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 714,442 shares worth $150.2 million. 

Here is what Aristotle Atlantic Large Cap Growth Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its investor letter for the first quarter of 2023:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”