Insider Buying

Insider Buying Report: Sunnova Energy International Inc (NOVA:US)

Sunnova Energy International Inc
(NOVA:US)
12 months:
-49%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Good Q3 results
Sunnova Energy International Inc
(NOVA:US)
12 months:
-49%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Good Q3 results

Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ investment prospects. If they are buying company stock, it’s generally worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at Sunnova Energy International Inc (NOVA:US). Sunnova is one of the leading residential solar and energy storage service providers in the US. Founded in 2012, it currently has over 175,000 customers across 33 states and territories. The company is listed on the New York Stock Exchange and has a market capitalization of $2.7 billion at present.

Sunnova Energy International Inc: Insider Buying

Our data shows that on December 28, 2021, board member Akbar Mohamed bought 20,000 NOVA shares at a price of $26.13 per share. This trade cost the insider $522,600 and increased his holding to 45,386 shares.

Sunnova Energy International Inc price chart showing notable buy and sell events

Investment Background

This trade is worth highlighting for a couple of reasons. Firstly, Mr. Mohamed has spent a substantial amount of money on stock and increased the size of his position by nearly 80%. This suggests he is very confident the stock is set to move higher.

Secondly, our research reveals that Mr. Mohamed has an investment background. Through his family office, Jumana Capital, he is an active investor in operating businesses, real estate, private equity, and venture capital funds. Previously, he served as an investment professional at Hicks Muse, a private equity firm in Dallas, and as a M&A professional at Goldman Sachs. This means he is likely to have an excellent understanding of the intrinsic value here.

Solid Growth

Sunnova’s Q3 results showed that the company continues to grow at a healthy rate.

For the three months to the end of September 2021, revenue came in at $68.9 million, up 37% year on year and ahead of analysts’ forecasts. Meanwhile, net loss for the period decreased to $25.9 million, from $73.3 million a year earlier.

During the quarter, the group added 14,300 new customers, taking its total customer count to 176,900. It ended the period with cash of $520 million on its books.

Looking ahead, Sunnova advised that it expects to add 83,000 to 87,000 new customers in 2022. It also said that it expects to achieve adjusted EBITDA of between $117 million and $137 million for 2022, up from $80 million to $85 million in 2021.

Given the solid growth here, we see the insider buying as a bullish indicator.

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