Corporate Insiders Bought Up This Beaten-Down Battery Stock. Here’s Why.

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Enovix chairman TJ Rodgers says its share price makes it a “low-risk investment.”

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Courtesy of Enovix

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Enovix’s stock has declined this year, but Chairman Thurman J. Insiders led by “TJ” Rodgers have bought shares of a company that makes batteries for mobile devices.

At Tuesday’s close of $9.46, Enovix (ticker: ENVX) stock has lost two-thirds of its value so far in 2022, while the S&P 500 index is down 17%.,
This year has been a big bad macro for tech, especially for money-losing companies that recently went public through special purpose acquisitions, like anovix, The company went public through a SPAC, Rogers Silicon Valley Acquisition Corp. July 2021,

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TJ Rodgers, head of SPAC, said in a press release announcing the transaction, “The development and manufacturing of 100% active silicon anodes has long been a goal of the battery industry as it dramatically enhances performance. We are confident that Enovix will be the first to deliver mass due to its proprietary 3-D cell architecture, world-class team, and automated manufacturing. Rodgers is known as the founder and Longtime CEO of Cyprus Semiconductorjust owned by germany
Infineon,

rogers paid $3.6 million Above May 13, 17, and 23 According to the form filed with the Securities and Exchange Commission, an average price of $8.89 each, for a total of 400,000 Enovix shares. He purchased shares through a trust, and now owns 21.4 million Enovix shares and 3,162 shares in a personal account through the trust and a limited liability company. he is largest enovix shareholderWith a share of over 13%, according to S&P Capital IQ.

“I’m 74,” Rodgers said in a phone interview, “I’m not really buying a stock to add to my position.” He bought shares of Enovix through a charitable trust that has a policy of “low-risk investing,” a metric that Rodgers says the stock now meets.

“I took Enovix public at $10 per share, and investors bid PIPE” — the stage of private investment in public equities — “$14,” he said. Companies generally use a PIPE to generate Extra cash from SPAC deals and to substantiate the assessment. Rodgers declined to specify a fair price for Enovix stock, but noted that the $10 and $14 prices are “clearly achievable in this market.”

Enovics is now “really very similar to Cypress in the early days,” Rodgers said. “No one knew that [Cypress] could make a profit.” But Anovix has “a lot of money — more than Cypress.”

Other Enovix buyers include directors J. Daniel McCranie and Edward Hejlek, chief legal officer, McCranie Paid $268,500 on May 13 For 30,000 Enovix shares, the average price is $8.95 each. McCranie, a former semi-executive of Cypress, now holds 503,162 shares. hedgelake Paid $89,900 on May 13 for 10,000 Enovix shares, an average price of $8.99 each; He now holds 171,921 shares.

In a May 12 report, Oppenheimer analyst Colin Rusch wrote that the company’s first-quarter report was a “verification of growth plans and technology.” Rusch said, “Given the $408 million in cash on hand, we believe Enovics is well capitalized for its growth plans and are confident that the announcement of its Fab 2 location will coincide with the first product revenue. Will prove to be the next catalyst for stocks.” He reiterated the outperform rating and 12-18 month price target of $38.

The Inside Scoop features a regular baron covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Because of their insider positions, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write and follow Ed Lin at [email protected] @BarronsEdLin,



Credit: www.marketwatch.com /

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