EnerNOC, Inc. (ENOC) Shares Jump 75% After ‘Demand Response’ Ruling is Upheld


Everyone likes to conserve energy, especially one company that you may have heard of called EnerNOC, Inc. (NASDAQ:ENOC). Today, shares of company stock are up huge after the Supreme Court issued a ruling concerning “Demand Response”. For those unfamiliar with the phrase “demand response”, and the ruling, it is the act of allowing energy consumers to alter the times they use energy in order to provide a benefit to the entire grid. In turn, they receive discounted, time-based rates. For example, if the greatest electrical demand was to be at 1:30PM, and the least demand at 2:30AM, those who use energy or switch their energy consumption to the off-demand times, will see lower rates. This protects the grid, while making it less of a burden on energy providers.

EnerNOC, Inc. (NASDAQ:ENOC) is one of the companies who helps others better manage their power useage, and they stand to gain tremendously from a court ruling that says the Federal Energy Regulatory Commission was acting within its authority when it asked industrial users to try and cut their electric use as much as they could. EnerNOC’s special Energy Intelligence Software (EIS) should see increased usage thanks to this ruling.

“We are extremely proud of our involvement in this seminal case that ensures an important role for demand-side resources in our nation’s wholesale electricity markets. Today’s decision is a tremendous win for all energy consumers, for the economy, and for the environment. We commend the Court and look forward to continuing to help customers actively participate in our nation’s wholesale markets,” said Tim Healy, Chairman and CEO of EnerNOC.

The stock is up 75.72% or $3.15 following the news, hitting $7.31 per share. About 10.28 million shares traded hands or up 1700.34% from the average. ENOC has declined 61.48% since June 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 50.46%.

From a total of 4 analysts covering EnerNOC (NASDAQ:ENOC) stock, 1 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $16 while the lowest target price is $6. The mean of all analyst targets is $8.38 which is 14.64% above today’s ($7.31) stock price. EnerNOC was the topic of 8 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Needham maintained shares on November 6 with a “Buy” rating. Robert W. Baird maintained ENOC stock in a recent report from August 24 with a “Outperform” rating. Finally, Morgan Stanley maintained the stock with a “Equal Weight” rating in a report they issued on a July 31.

The institutional sentiment increased to 1.16 in Q2 2015. It’s up 0.11, from 1.05 in 2015Q2. The ratio improved, as 17 funds sold all their EnerNOC, Inc. shares they owned while 32 reduced their positions. 15 funds bought stakes while 42 increased their total positions. Institutions now own 23.45 million shares which is 34.16% more than the previous share count of 17.48 million in 2015Q2.

Tensile Capital Management Llc holds 1.84% of its total portfolio in EnerNOC, Inc., equating to 780,144 shares. Oaktop Capital Management Ii L.P. owns 780,000 shares representing 1.38% of their total US portfolio. Moreover, Clear Harbor Asset Management Llc has 0.36% of their total portfolio invested in the company, equating to 201,881 shares. The New York-based Robecosam Usa Inc. has a total of 0.32% of their portfolio invested in the stock. Impax Asset Management Ltd, a United Kingdom-based fund reported 545,855 shares owned.

EnerNOC, Inc. is a provider of cloud energy intelligence software and services to enterprise clients and utilities globally. The company has a market cap of $136.36 million. The Company’s EIS solutions for enterprise clients improve energy productivity by optimizing how they buy, how much they use, and when they use energy. It currently has negative earnings. The Company’s EIS is a decision support system for the enterprise featuring: budgeting and procurement, including an online auction platform and utility bill management; facility optimization; visibility and reporting, including capabilities for GRESB, ENERGY STAR, and other reporting standards; project tracking; demand management; and demand response.