Shares of fintech company Enova are on track for their worst day in six years. What has upset investors?

Shares of mid-cap fintech company Enova International plummeted by more than 23% on September 15, narrowly avoiding its biggest single-day drop in six years. The company decided against acquiring the digital bank Grasshopper and withdrew its applications for regulatory approvals.

Shares of Enova, which provides online lending to small businesses and individuals, plummeted by more than 23% on September 15 on the New York Stock Exchange, falling to $173.6. According to a Barron’s article, this drop was nearly the largest since March 18, 2020.

Investors reacted to the company’s announcement that it had withdrawn its applications regarding the acquisition of Grasshopper from the Office of the Comptroller of the Currency (which licenses and supervises banks) and the Board of Governors of the Federal Reserve System. The parties announced the planned $369 million deal in December 2025.

“Regulators do not have clear standards for nonbank organizations that want to become banks and serve customers whose credit needs are currently met primarily outside the banking system,” — explained Enova CEO Steve Cunningham (his remarks are quoted in a press release).

Enova is a fintech company that provides financial services to small businesses and consumers in the U.S. and Brazil, but it does not hold a banking license. This means it must comply with the maximum interest rate limits set by each U.S. state or operate in partnership with other banks.

By acquiring Grasshopper, it would obtain a national banking license. Such a license allows banks to bypass restrictions and “export” the maximum interest rates allowed in their home states. That is why Enova’s announcement of its planned acquisition of a digital bank was met with a positive reaction from investors—on the day of the announcement, the company’s stock soared by nearly 12%. The next day, BTIG analysts raised their price target for Enova shares by 38% from their previous forecast.

Following the cancellation of the deal, Wall Street has not yet revised its recommendations regarding the company’s stock: all seven analysts who cover the company continue to recommend buying its shares. However, at least two of them have significantly lowered their price targets for Enova shares: investment bank Citizen by more than 20%, to $215 (with upside potential of nearly 24% relative to the last closing price), and TD Cowen by 14%, to $220 (nearly 27%). The average target price is $255.1, which is nearly 47% higher than the stock’s price on September 15.