Sunnova Energy International Inc

Sunnova Energy International Inc. (NYSE: NOVA) is a residential solar and energy storage service provider to customers across the United States. The Company offers a residential solar dealer model in which it partners with local dealers who originate, design, and install its customers' solar energy systems and energy storage systems on its behalf. 

Recent Financial and Business Updates:

• Sunnova reported a revenue increase of USD 19.4 million for the three months ended June 30, 2023, compared to the same period in 2022, driven by more solar energy systems in service and increased service revenue from direct sales to existing customers.
• Total operating expense, net, rose by USD 76.4 million for the three months ended June 30, 2023, compared to the same period in 2022, primarily due to more solar energy systems in service, higher general and administrative expenses, increased cost of revenue from direct sales, and other operating expenses related to financial instruments and contingent consideration.
• Sunnova incurred a net loss of USD 100.8 million for the three months ended June 30, 2023, compared to a net loss of USD 13.8 million in the same period of 2022, mainly due to higher interest expenses and general and administrative expenses.
• Adjusted EBITDA for the three months ended June 30, 2023, was USD 28.1 million, a decrease from USD 39.7 million in the same period of 2022, attributed to a lower gross margin contribution from inventory sales and increased spending for higher-than-expected growth.
• As of June 30, 2023, Sunnova's total cash balance, including restricted and unrestricted cash, amounted to USD 405.9 million. The company's 2023 full-year guidance includes an increase in customer additions to between 135,000 and 145,000, with reaffirmed figures for Adjusted EBITDA, interest income from customer notes receivable, and principal proceeds from customer notes receivable and investments in solar receivables.
  

Technical Observation (on the daily chart)

The price of NOVA stock has shown a consistent downward trend since making 52-week high on August 08, 2022            , correcting around 43.36%. Currently, the stock is near an important support zone of USD 16.00-USD 18.00, from where price has taken support in the past. The RSI (14 period) momentum indicator is around oversold zone with a value of 39.68, with expectations of some consolidation or a short-term upside momentum. Moreover, the price is currently positioned below both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance levels.

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As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Sunnova Energy International Inc. (NYSE: NOVA) at the current price of USD 17.85 as of July 27, 2023, 07:50 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is July 27, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.