Shares in Novonix Ltd (ASX: NVX) are surging 8% higher to now sit at $6.11 apiece in afternoon trade on Thursday.
Investors are rallying behind Novonix today on a volume of 69% of the 4-week average, extending gains for the past month to 20%.
Lumpy set of returns in 2022
Even still, the stock remains 33% in the red since trading resumed in January, all whilst the ASX tech sector has slipped just 15%.
This kind of trend has been the norm for Novonix shares since late 2021, in that with each move to the downside or upside in the tech index, Novonix tends to jump a few points on top of that.
Since November last year, shares have netted a loss of 25%, whereas the index is down just 20% in the same time.
Much of the pressure has stemmed from shifting yields on long-dated bonds, hurting the valuations of shares like Novonix.
Consequently, tech and growth shares alike have been compressed in 2022, with many names suffering deep losses until the time of writing.
As The Motley Fool reported earlier in March, “with a downturn in the wider sector, this appears to have spilled over into downward pressure on Novonix as well.”
Aside from that, the company saw earnings downgrades from several brokers on the back of its much larger expenditure base in the first half.
In the last 12 months, the Novonix share price has spiked more than 183% and is also surging 4% in the previous week of trade.
The post Novonix (ASX:NVX) share price shoots up 20% this month amid tech snapback appeared first on The Motley Fool Australia.
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More reading
- Buying ASX shares to cash in on the EV and battery metals craze? Read this
- Why is the Novonix (ASX:NVX) share price down 44% YTD?
- Here are the top 10 ASX shares today
- ASX tech shares take a hammering on Friday
- Why is the Novonix (ASX:NVX) share price down 22% in a month?
Motley Fool contributor Zach Bristow 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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