NEW YORK (TheStreet) -- Shares of Enphase Energy (ENPH) were falling 25.15% to $1.25 on heavy trading volume mid-Friday morning after the energy management systems company announced a public offering of 13 million shares of common stock at $1.20 per share.
Underwriter Oppenheimer has the option to purchase up to 1.95 million additional shares.
Directors, officers and company employees are expected to buy approximately $1.2 million in stock in the offering which should close on September 28, the company said in a statement.
Enphase anticipates it will earn about $15.6 million in proceeds from the sale.
Roth Capital said the offering, in conjunction with other restructuring initiatives, could reduce near-term balance sheet concerns, the Fly reports.
But the firm added that the company's earnings outlook will remain challenged.
Roth reiterated a "neutral" rating on the shares and lowered its price target to $1.50 from $1.80.
More than 4.73 million shares of the Petaluma, CA-based company have traded so far today, vs. the 30-day average volume of about 250,000 shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D-.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally high debt management risk.