Sunnova Energy (NOVA) Stock Is Volatile: What's Going On?

Sunnova Energy International Inc NOVA shares are trading higher by 40.4% to 51 cents during Thursday’s session. Earlier this week a report suggested Oaktree Capital Management has been buying up debt in the company.

The stock was also volatile last week following reports the company is exploring a debt restructuring that may include a bankruptcy filing.

What To Know: Oaktree Capital Management has been acquiring debt in Sunnova Energy International Inc. as the solar panel provider moves toward negotiations with creditors to restructure its finances, Bloomberg reported.

Oaktree has accumulated approximately $400 million of Sunnova's debt in recent days, according to sources familiar with the matter. Sunnova, which had over $8 billion in net debt at the end of 2023, recently issued a going concern warning.

After the warning, creditors merged two advisory groups, appointing Paul Weiss as legal counsel and Evercore as financial adviser.

As a major debtholder, Oaktree is expected to play a key role in the discussions. Representatives from Oaktree, Sunnova and advisory firms declined to comment, Bloomberg noted.

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How To Buy NOVA Stock

By now you're likely curious about how to participate in the market for Sunnova Energy – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Sunnova Energy, which is trading at $0.5 as of publishing time, $100 would buy you 200.0 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, NOVA has a 52-week high of $13.00 and a 52-week low of $0.25.