Why did the Novonix share price notch up a 24% gain in July?

asx share price increase represented by golden dollar sign rocketing out from white domes of lithiumasx share price increase represented by golden dollar sign rocketing out from white domes of lithium

July brought an about-face for the Novonix Ltd (ASX: NVX) share price, which had previously suffered five back-to-back monthly losses.

After closing June trading at $2.28, the Novonix share price finished last month at $2.83, representing a 24.1% gain.

In that time, the S&P/ASX 200 Index (ASX: XJO) lifted 5.7% while the company’s home sector – the S&P/ASX 200 Information Technology Index (ASX: XIJ) – surged 15.2%.

So, what drove the battery technology and materials share to outperform last month? Let’s take a look.

What boosted the Novonix share price in July?

The Novonix share price leapt 24% last month despite the company staying relatively silent.

There was only one piece of news released by Novonix in July, and it dropped late in the peace.

The company released its report for the June quarter last Wednesday, detailing $2.5 million of customer receipts and a $7.9 million operating cash outflow.

The Novonix share price slumped 1.6% on the back of the release.

So, what helped drive the stock higher last month? Well, it was a good period for the broader ASX 200 tech sector.

It, in turn, was likely bolstered by the strong performance of the Nasdaq Composite Index (NASDAQ: .IXIC). The tech-heavy index lifted around 12% in July, marking its biggest monthly gain since April 2020.

Bullish comments on the battery materials industry by none other than Tesla CEO Elon Musk also appeared to nurture sentiment in the ASX 200 tech share

But not everyone was optimistic about Novonix last month. Broker Morgans dropped its price target for the stock by around 39% to $2.98, as my Fool colleague James reported.

Sadly, July’s gains weren’t enough to boost the Novonix share price back into the longer-term green.

The company’s stock is currently 76% lower than it was at the start of 2022. It has also fallen 13% since this time last year.

The post Why did the Novonix share price notch up a 24% gain in July? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Tesla. 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 Scott Phillips.

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