Thursday was a good day to be a Novonix shareholder.
The post Why did the Novonix (ASX:NVX) share price leap 6% on Thursday? appeared first on The Motley Fool Australia. –
The Novonix Ltd (ASX: NVX) share price surged higher today despite no news having been released by the company.
In fact, the last time the market heard price-sensitive news from Novonix was way back in August. But the silence seemingly hasn’t deterred the market from driving the company’s stock’s value higher.
As of Thursday’s close, the Novonix share price is $5.39, 5.89% higher than it was at Wednesday’s close.
Let’s take a look at what might have driven the Novonix share price today.
Novonix is a battery and technology company that operates in two segments.
First, Novonix’s battery testing solutions develops battery testing equipment. It’s focused on using Ultra-High Precision Coulometry to help create reliable lifetime evaluation of lithium-ion cells.
Meanwhile, the company’s PUREgraphite business creates environmentally friendly graphite anode material for lithium-ion batteries.
What drove the Novonix on the ASX today?
There was no obvious reason for the rise in the Novonix share price today. However, it wasn’t alone in its gains. Many ASX battery material stocks were in the green today.
Perhaps battery-focused shares were spurred on by the potential for Australia to set a net zero emissions target ahead of next month’s COP 26 UN Global Climate Conference.
According to reporting by SBS, the Liberals and Nationals are at odds over setting a net zero emissions target for 2050, with Prime Minister Scott Morrison pushing to get a plan in place before the Glasgow summit.
Such discussions could be bolstering interest in companies working in the climate-friendly battery sector.
Novonix share price snapshot
Today’s gains are only the latest for the Novonix share price, which has been performing brilliantly on the ASX lately.
It has gained 334% since the start of 2021. It is also 376% higher than it was this time last year.
Should you invest $1,000 in Novonix right now?
Before you consider Novonix, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Novonix wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.