Sunnova Energy Stock (NOVA) Dives 60% on Bankruptcy Warning
Shares of Sunnova Energy International (NOVA) have plunged 60% on March 3 after the solar power company warned about its ability to continue as a going concern.
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NOVA stock is currently trading at just $0.66 after management said as part of their fourth-quarter 2024 financial results that the company’s available cash is “not sufficient to meet obligations and fund operations.” Sunnova added that it has hired a financial advisor to assist in the company’s debt management and refinancing efforts.
“Substantial doubt exists regarding our ability to continue as a going concern for a period of at least one year from the date we issue our consolidated financial statements,” wrote Sunnova Energy. For the final quarter of last year, Sunnova reported a net loss of -$127.7 million, narrower than the -$234.8 million loss reported in the fourth quarter of 2023.
Dire Situation
Houston-based Sunnova Energy was founded in 2012 and specializes in solar panel installations and energy storage services. According to media reports the Better Business Bureau last accredited Sunnova Energy in 2019 and has received hundreds of customer complaints about the company and its products.
Sunnova Energy went public in 2019, and since then its share price has declined 94%, including an 80% decrease so far in 2025. The company’s 52-week high was $13 per share. It’s not clear when or if Sunnova Energy plans to make a formal filing in bankruptcy court to receive protection from its creditors.
Is NOVA Stock a Buy?
The stock of Sunnova Energy has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on seven Buy and eight Hold recommendations assigned in the last three months. The average NOVA price target of $7.25 implies 960% upside from current levels. However, these ratings are likely to change after the company’s latest financial results and going concern notice.
Read more analyst ratings on NOVA stock