What happened
Shares of Sunnova Energy International (NOVA +0.00%) jumped today after an analyst at Roth Capital Partners said that a short-seller report about Sunnova published yesterday "misses the mark."
Shares of the residential solar and energy-storage company were up by as much as 13.4% today and had risen 12.5% as of 1:45 p.m. EDT.
So what
Just yesterday, shares of Sunnova Energy fell after short-seller Spruce Point Capital Management released a report saying that investors should be worried about the state of the solar industry and that customers are focusing more on buying solar panels, as opposed to leasing them from companies like Sunnova. Spruce Point also said investors should worry about "corporate governance concerns and insider activity" at Sunnova.
Image source: Getty Images.
But today, Roth Capital analyst Philip Shen said that the issues Spruce Point brought up in its report are "weak and/or circumstantial." Shen said that the report missed the mark, and he reiterated his buy rating for Sunnova with a $33 price target.
Investors were clearly happy to hear Shen's perspective and pushed the stock up. Today's gains add to Sunnova's already-impressive climb this year, with the stock up 172% year to date.
Now what
With Sunnova Energy's stock tumbling because of the short-seller report yesterday and then rebounding today after a rebuttal by Shen, it appears that some investors are quick to buy and sell this stock on the daily news. All of which means that long-term investors looking to buy this stock, or add to their position, should expect more price swings in the near future.
