What Happened?
Shares of financial technology company Enova International (NYSE:ENVA) jumped 13.1% in the afternoon session after the company announced it agreed to acquire Grasshopper Bancorp, a digital bank, in a cash-and-stock transaction valued at approximately $369 million.
The deal aimed to combine Enova's online lending operations with Grasshopper's digital banking infrastructure, creating a more diversified financial services company. Grasshopper Bank had over $1.4 billion in total assets as of September 2025. The acquisition was expected to significantly boost Enova's financial results, adding more than 15% to its adjusted earnings per share in the first year after the deal is finalized, and over 25% once the full benefits are realized. The transaction, which will be paid for with a mix of cash and new Enova shares, is expected to close in the second half of 2026, pending regulatory and shareholder approvals.
Is now the time to buy Enova? Access our full analysis report here.
What Is The Market Telling Us
Enova’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Enova and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 4.1% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December.
The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.
Enova is up 65.3% since the beginning of the year, and at $158.94 per share, has set a new 52-week high. Investors who bought $1,000 worth of Enova’s shares 5 years ago would now be looking at an investment worth $7,048.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.