Morning Commentary: Sunnova Energy convertible notes gain post-earnings

By Abigail W. Adams

Portland, Me., April 27 – It was another quiet start to the session on Thursday in the convertibles market with trading volume continuing to dwindle amid a lack of new issuance and an uncertain market.

While activity in the space remained muted, the tone improved with equities on the rise after the bellwethers of tech continued to post strong earnings and a weak GDP print amped up expectations for an end to the Federal Reserve’s rate hike campaign.

The Dow Jones industrial average was up 169 points, or 0.51%, the S&P 500 index was up 0.78%, the Nasdaq Composite index was up 1.25% and the Russell 2000 index was up 0.25% shortly before 11 a.m. ET.

Solar companies continued to receive attention with Sunnova Energy International Inc.’s 0.25% convertible notes due 2026 making gains following earnings despite Enphase Energy Inc.’s earnings dragging down the broader sector the previous session.

While volume was light, Sunnova’s 0.25% convertible notes rose 3.5 points outright with stock up 13%.

The notes were changing hands at 77.5 with the yield about 7.5%, according to a market source.

Sunnova’s stock was trading at $18.50, an increase of 13.36%, shortly before 11 a.m. ET.

The solar energy company’s stock posted strong gains following earnings with the company missing on the bottom line but beating on the top.

Sunnova reported losses per share of 70 cents versus analyst expectations for losses of 58 cents. Revenue was $161.7 million versus analyst expectations for revenue of $152.5 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.