Enova International (NYSE: ENVA) shares fell 25% to $169.15 on Tuesday after the company withdrew its regulatory applications related to its proposed $369 million acquisition of Grasshopper Bancorp. The decline was the stock’s steepest single-session loss since March 18, 2020, according to Dow Jones Market Data.

The sell-off followed Enova’s disclosure on Monday evening that it had terminated submissions to the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System. The applications were tied to the company’s planned takeover of Grasshopper Bancorp, a digitally focused commercial banking institution. Their withdrawal effectively ends the transaction and leaves Enova’s existing consumer credit and small-business lending operations as the businesses reflected in its reported results.

Enova announced the proposed acquisition in December 2025. The deal had remained pending regulatory approval since then. In an official company announcement, Chief Executive Steve Cunningham said the decision followed an extensive review.

“Following extensive analysis, we believe withdrawing our regulatory applications represents the optimal path forward for Enova and those who hold our shares,” Cunningham said.

He attributed the decision in part to uncertainty surrounding the regulatory treatment of nonbank financial institutions seeking to acquire or transition into chartered banks.

“Federal regulators have not established transparent criteria for nonbank financial institutions seeking to transition into chartered banks, particularly those serving consumers whose financing requirements are predominantly addressed beyond traditional banking channels,” Cunningham said.

Enova did not identify specific regulatory objections. Instead, the company said the decision reflected insufficient progress through the approval process.

Citizens Lowers Price Target

Following the announcement, a Citizens analyst reduced the price target for ENVA to $215 from $270 while maintaining a Market Outperform rating. Citizens said the shares had been down approximately 20%, near $180, in premarket trading after the disclosure. The decline expanded to nearly 25% by the end of Tuesday’s session.

Citizens also noted that InvestingPro metrics indicated the stock appeared overvalued relative to Fair Value. At the same time, the company’s PEG ratio of 0.36 suggested an attractive valuation when growth expectations were taken into account.

Core Business Reports Strong Results

The abandoned acquisition came despite continued strength in Enova’s core operations. During the second quarter of 2026, the company reported adjusted earnings of $4.31 per share and revenue of $929 million. Both figures exceeded analyst consensus estimates of $3.96 per share in adjusted earnings and $909.61 million in revenue.

The results marked Enova’s eighth consecutive quarter of earnings-per-share growth above 30%. Citizens had previously pointed to momentum in both the company’s consumer credit and small-business lending businesses.

Despite Tuesday’s decline, ENVA shares remained up 7.6% since the beginning of the year and approximately 40% over the previous 12 months. Enova’s market capitalization stood at about $5.64 billion, while the shares traded at a price-to-earnings multiple of 16.72.

Citizens retained its Market Outperform rating after lowering the price target, citing Enova’s expansion trajectory as the basis for maintaining its recommendation.

Source: Blockonomi