3. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 25
Sunnova Energy International Inc. (NYSE:NOVA) is a leading provider of residential energy services in the United States. The company offers maintenance, monitoring, repairs, and diagnostics services. On April 27, Sunnova Energy International Inc. (NYSE:NOVA) reported earnings for the fiscal first quarter of 2022. The company reported a loss per share of $0.33 but beat estimates by $0.01. Moreover, the company’s quarterly revenues grew by 59.23% year over year and came in at $65.72 million, up from $41.28 million in the comparable quarter last year. Sunnova Energy International Inc. (NYSE:NOVA) also reaffirmed its fiscal year 2022 EBITDA view of $117 million to $137 million and added that the company sees additional customer subscriptions of up to 89,000 by the end of the year.
On May 18, Northland analyst Abhishek Sinha initiated coverage of Sunnova Energy International Inc. (NYSE:NOVA) with an Outperform rating and a $30 price target. The analyst noted that he sees now as an attractive entry point for investors to stack up on Sunnova Energy International Inc. (NYSE:NOVA) to gain exposure in the residential solar market given the company’s strong business model and robust cash flows. Sinha further contended that solar stocks suffered major blows from rising rates and uncertainties over government policies, but sees significant upside for Sunnova Energy International Inc. (NYSE:NOVA) as demand for residential solar systems surges.
By the end of the fourth quarter of 2021, 25 hedge funds were long Sunnova Energy International Inc. (NYSE:NOVA). The total stakes of these hedge funds were valued at $149.91 million. Ken Griffin’s Citadel Investment Group raised its Q4 2021 stakes by an astounding 1,342%, bringing its Q1 2022 stakes to $31.26 million as of March 31, 2022. Citadel Investment Group is the leading shareholder in the company.
ClearBridge Investments mentioned Sunnova Energy International Inc. (NYSE:NOVA) in its “Small Cap Strategy” first-quarter 2022 investor letter. Here is what the firm said:
“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”
