The All Ordinaries Index (ASX: XAO) is having a rather bumpy day so far this Thursday. At the time of writing, the All Ords is up by 0.02% to 7,727 points after stints in both positive and negative territory today. But one All Ords ASX share is putting the index to shame so far today. That would be the Novonix Ltd (ASX: NVX) share price.
Novonix shares are currently up a very pleasing 11.57% to $10.70 apiece. Not only that, they hit $10.74 earlier this morning, which is a new all-time high for this company.
So what’s going on with Novonix today that could be eliciting this excitement?
Well, unfortunately, it’s not quite clear. There have been no price-sensitive announcements out of Novonix recently. The company did release a statement yesterday morning during intra-day trading. This outlined Novonix’s opening of a new facility in Chattanooga, in the US state of Tennessee. The company said this new facility would “produce the high purity and high consistency anode material required for long-life batteries, specifically for electric vehicles and similar storage application”.
But seeing as this news became public yesterday, it’s a long bow to link it to today’s share price moves. In fact, Novonix shares dipped close to 1% yesterday by market close.
Novonix share price shoots the moon
So let’s look at how Novonix’s sector peers are performing today so far.
Novonix is an ASX materials share. The company is a developer and supplier of materials, services, and equipment for the lithium-ion battery industry. We are seeing other players in the battery and lithium spaces also enjoying some outsized gains today.
For instance, lithium producers Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are also enjoying strong performances. Pilbara shares are up a healthy 3.36% at $2.62 apiece at the time of writing (a new all-time high). And Orocobre shares are up a more modest 1.44% at $9.84.
But another thing to remember is that this move, while certainly dramatic, isn’t exactly out of character for Novonix. This is a company that is now up 66% in just the past month and up an extraordinary 763% year to date.
As my Fool colleague Brooke covered earlier in the month, the catalyst for these longer gains appears to be the company’s most recent quarterly activities and cash-flow update. As well as news that the US company Phillips 66 (NYSE: PSX) had made a strategic investment in Novonix.
Today’s moves could well be an extension of this recent run of stellar investor sentiment. Or perhaps a large or institutional investor has made an investment. Whatever the reason, today’s moves are just the latest feather in the Novonix share price cap, it seems.
At the current Novonix share price, this company has a market capitalisation of $4.62 billion.
The post Why is the Novonix (ASX:NVX) share price surging 11% to an all-time high today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen 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.
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