TLDR
- Enova International stock fell 25% to $169.15 on Tuesday, its worst single-day drop since March 2020.
- The company withdrew regulatory applications with the OCC and Federal Reserve related to its planned acquisition of Grasshopper Bancorp.
- The deal, announced in December 2025, was valued at $369 million.
- CEO Steve Cunningham cited a lack of clear regulatory standards for nonbanks seeking to become banks.
- Citizens cut its price target on ENVA from $270 to $215, while maintaining a Market Outperform rating.
Enova International (ENVA) is having a rough Tuesday. The stock dropped 25% to $169.15, putting it on pace for its worst daily decline since March 18, 2020, according to Dow Jones Market Data.
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Enova International, Inc., ENVA
The selloff came after Enova announced late Monday that it had withdrawn its regulatory applications with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System.
Those applications were tied to its planned $369 million acquisition of Grasshopper Bancorp, a digital-first commercial bank. With the applications pulled, the deal is dead.
Enova first announced the Grasshopper acquisition in December 2025. The deal had been pending regulatory approval since then.
CEO Steve Cunningham addressed the decision directly. “After a thorough evaluation, we are confident that withdrawing our applications is the best decision for Enova and our shareholders,” he said in a press release.
Cunningham also pointed to the regulatory environment as a key factor. “Regulators do not have clear standards for nonbanks that want to become banks and that serve customers whose credit needs today are met mostly outside of the banking system,” he added.
The company did not cite any specific areas of regulatory pushback. It said it withdrew after a lack of progress in the application process.
Citizens Cuts Price Target
Citizens analyst cut the price target on ENVA to $215 from $270 following the news, while keeping a Market Outperform rating on the stock.
The bank noted that ENVA was indicated down roughly 20% to near $180 in early trading following the announcement. The final move came in closer to 25%.
Citizens noted the stock appears overvalued relative to its Fair Value based on InvestingPro analysis, though its PEG ratio of 0.36 points to reasonable valuation relative to growth.
Strong Earnings Still on the Books
Despite the deal falling apart, Enova’s underlying business has been performing well. The company reported adjusted earnings of $4.31 per share on revenue of $929 million in its second quarter of 2026.
That beat Wall Street’s estimates of $3.96 per share and $909.61 million in revenue.
It also marked the eighth straight quarter of over 30% earnings per share growth, with Citizens previously noting the strength in both consumer and small-business lending.
Even after Tuesday’s drop, ENVA is still up 7.6% year-to-date and has gained around 40% over the past 12 months.
The market cap currently stands at approximately $5.64 billion, and the stock carries a P/E ratio of 16.72.
Citizens maintained its Market Outperform rating despite the reduced price target, citing the company’s growth prospects.
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