Enphase Energy shares jumped 35% in a single session, marking one of the largest one-day rallies in company history. The move was powered by the unwinding of 28.7 million shares held short, representing 22.7% of the float, with a days-to-cover ratio of 5.1. Over 60% of trading occurred off-exchange, indicating that dark-pool positions were heavily caught off guard. As the price accelerated higher, shorts were forced to cover, creating a classic squeeze dynamic that amplified each uptick.

In the fourth quarter, Enphase reported earnings of $0.71 per share, beating consensus by 31% and exceeding last year’s $0.94 level. Revenue of $343.3 million topped estimates by $2.7 million. Management disclosed that channel stockpiles have largely normalized following a prolonged inventory backlog, and European demand is rebounding. Free cash flow reached $37.8 million, while cash and equivalents ended the quarter at $1.51 billion. These results shattered the bearish ‘solar winter’ thesis and forced analysts to revisit their assumptions.

The stock’s 50-day moving average is now closing in on its 200-day moving average, setting up a potential Golden Cross that could attract momentum traders. Major banks including Wells Fargo and JPMorgan raised their price targets by up to 55%, revising their outlooks after underestimating the recovery. Even conservative firms such as HSBC initiated upgrades. This confluence of technical strength and bullish analyst actions signals a broader reappraisal of Enphase’s growth trajectory.