HOUSTON—Mohamed Akbar, a director at Sunnova Energy International Inc . (NYSE:NOVA), recently made significant purchases of the company's stock, according to a recent SEC filing. On November 15 and November 18, Akbar acquired a total of 104,717 shares of common stock, amounting to approximately $389,728. The shares were bought at prices ranging from $3.6398 to $3.7966 per share.
Following these transactions, Akbar now holds 352,654 shares of Sunnova Energy's common stock. These acquisitions reflect Akbar's continued investment in the Houston-based renewable energy company, which specializes in providing solar and energy storage services.
In other recent news, Sunnova Energy International Inc. reported strong third-quarter earnings, with revenue reaching $235 million, marking a 19% increase driven by a 30% customer growth. The company reaffirmed its ambitious cash generation goals of $100 million for 2024, $350 million for 2025, and $400 million for 2026. However, BMO Capital Markets adjusted its outlook on Sunnova, reducing the company's price target from $10.00 to $8.00, while maintaining a Market Perform rating on the stock. This adjustment came after the company's earnings call which highlighted challenges in cash generation and managing the company's $975 million in debt maturities. The firm emphasized that the execution of Sunnova's financial strategy is crucial for its financial health.
Sunnova has also been selected by the Penobscot Nation to install a half megawatt battery energy storage system (BESS) to bolster the resilience of Maine's electrical grid. This collaboration aims to provide reliable power for the tribe's community and commerce facilities during grid disruptions. The system is designed to capture excess photovoltaic (PV) production, estimated at 549,678 kWh per year, and sustain power supply during grid outages, even without external grid support. These are recent developments that investors should consider.
InvestingPro Insights
Mohamed Akbar's recent stock purchases come at a time when Sunnova Energy International Inc. (NYSE:NOVA) is facing significant challenges, as revealed by recent InvestingPro data. The company's stock has experienced a substantial decline, with a 65.98% drop in the one-year price total return as of the latest data. This context makes Akbar's investment particularly noteworthy, potentially signaling confidence in the company's long-term prospects despite current headwinds.
InvestingPro Tips highlight that Sunnova is "Trading at a low Price / Book multiple" of 0.24, which could suggest the stock is undervalued relative to its assets. This aligns with Akbar's decision to increase his stake in the company. However, it's important to note that Sunnova "Operates with a significant debt burden" and is "Quickly burning through cash," which may explain the stock's recent poor performance.
The company's financial health presents a mixed picture. While Sunnova's revenue grew by 12.18% over the last twelve months to $809.98 million, it reported an adjusted operating loss of $216.16 million for the same period. This underscores the challenges the company faces in achieving profitability, a point reinforced by the InvestingPro Tip that "Analysts do not anticipate the company will be profitable this year."
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Sunnova, providing deeper insights into the company's financial situation and market position.
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