Is Enova Stock a Buy, Sell, or Hold After Its CFO Sells Shares Worth $1.8 Million?

On October 29, 2025, Steven E. Cunningham, Chief Financial Officer of Enova (NYSE:ENVA), sold 14,874 shares via an option exercise followed by an immediate open-market sale, as detailed in an SEC Form 4 filing.

Transaction summary

Transaction value calculated using the SEC Form 4 weighted average purchase price ($120.70 as of Oct. 29, 2025); Post-transaction value calculated using the SEC Form 4 weighted average purchase price ($120.70).

Key questions

What is the significance of the option exercise and sale structure in this transaction?
This transaction involved the exercise of 11,436 stock options, followed by the sale of 14,874 shares. The structure indicates that a portion of the sale proceeds likely covered the tax and exercise costs, with the remainder providing liquidity. The option exercise increased direct ownership immediately before the sale, impacting the denominator for percentage-of-holdings calculations.

How did the trade size compare to recent transaction patterns by Steven E. Cunningham?
The sale represented 10.43% of Mr. Cunningham's direct holdings as of the Oct. 29, 2025 transaction, aligning with the recent median (25,733 shares) for his sell transactions, reflecting the declining capacity of his holdings.

What was the market environment and price context on the transaction date?
The weighted average sale price was approximately $120.70 per share on Oct. 29, 2025. As of that date, the stock had returned 36.54% over the previous twelve months (calendar year basis), indicating the transaction occurred during a period of strong price appreciation for the company.

What is the remaining direct equity and option exposure for the insider post-transaction?
After this transaction, Mr. Cunningham retains 127,719 directly-held shares (valued at approximately $15.5 million as of the October 29, 2025 close).

Company overview

* 1-year price change of 36.54% calculated using October 29, 2025 as the reference date (calendar year basis).

Company snapshot

• Enova International offers online financial services including installment loans, lines of credit, receivables purchase agreements, and loan servicing under brands such as CashNetUSA, NetCredit, OnDeck, and Headway Capital.
• The company operates a technology-driven business model that leverages analytics to underwrite and service consumer and small business loans.
• It serves near-prime consumers and small businesses in the United States, Brazil, Australia, and Canada seeking alternative credit solutions.

Enova International, Inc. is a Chicago-based financial technology company specializing in online credit services for consumers and small businesses. The company leverages technology and analytics to provide online financial services. Enova's diversified product suite and multi-brand strategy support its competitive position in the non-bank lending sector.

Foolish take

Enova CFO Steven Cunningham's sale of stock is not a red flag. In fact, Mr. Cunningham is taking over as CEO of the company in January.

Enova is doing well with revenue rising 16% year over year in the third quarter to $803 million. Its Q3 diluted earnings per share (EPS) soared 93% year over year to $3.03, suggesting if you're a shareholder, it makes sense to keep the stock to continue benefiting from its revenue and EPS growth.

But is now the time to buy shares, given the company's success? The stock hit a 52-week high of $130.34 on Sept. 23, and while its share price has dropped since then, it's still elevated, which may have contributed to Mr. Cunningham's decision to sell some shares.

Still, Enova's price-to-earnings ratio is down from where it was at the start of the year thanks to its strong EPS growth. This suggests the stock remains reasonably valued despite the rise in share price. So it may not be a bad time to pick up Enova stock to hold for the long term.

Glossary

Option exercise: The act of converting stock options into actual company shares, usually by paying a set price.
Open-market sale: Selling shares directly on a public stock exchange, available to any buyer at market prices.
Insider: A company executive, director, or major shareholder with access to non-public company information.
Form 4: A required SEC filing disclosing insider trades in a company’s securities.
Weighted average purchase price: The average price paid per share, adjusted for the number of shares bought or sold at each price.
Liquidity: The ease with which an asset can be quickly converted into cash without significantly affecting its price.
Direct ownership: Shares held personally by an individual, not through trusts or other indirect means.
Denominator for percentage-of-holdings calculations: The total number of shares owned, used as the base to determine what portion a sale represents.
Near-prime: Borrowers with credit scores slightly below prime, considered less risky than subprime but not top-tier.
Receivables purchase agreements: Contracts where a company sells its right to collect future payments from customers to another party.
Non-bank lending sector: Companies providing loans and credit outside traditional banks, often using technology-driven models.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.