Sunrun (NASDAQ:RUN) Trading Down 7.3% – Time to Sell?

Shares of Sunrun Inc. (NASDAQ:RUN) were down 7.3% during mid-day trading on Thursday . The stock traded as low as $13.34 and last traded at $13.3630. 4,024,577 shares were traded during trading, a decline of 57% from the average daily volume of 9,435,684 shares. The stock had previously closed at $14.42.

Sunrun News Summary

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Sunrun said it can aggregate millions of existing home battery, smart thermostat, and vehicle-to-grid devices into a virtual power plant for hyperscalers and utilities, suggesting a scalable business opportunity with limited new hardware costs. Article Title
• Positive Sentiment: The Tesla/Renew Home agreement highlights Sunrun’s role in serving surging power demand from AI and data centers, which investors may see as a meaningful long-term growth catalyst for RUN. Article Title
• Neutral Sentiment: Trading activity also picked up sharply, including unusual call option buying, indicating heightened speculative interest around the stock after the announcement. Article Title
• Negative Sentiment: Despite the rally, one report noted that earnings estimate revisions do not necessarily point to sustained upside, suggesting some caution about follow-through if fundamentals do not improve. Article Title

Wall Street Analysts Forecast Growth

RUN has been the topic of several research analyst reports. Weiss Ratings cut shares of Sunrun from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, June 9th. Citigroup reduced their target price on Sunrun from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Tuesday, April 21st. Mizuho dropped their price target on Sunrun from $25.00 to $22.00 and set an “outperform” rating for the company in a report on Monday, March 2nd. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $17.00 price objective on shares of Sunrun in a research report on Friday, May 8th. Finally, TD Cowen reduced their price objective on Sunrun from $23.00 to $21.00 and set a “buy” rating on the stock in a research note on Thursday, May 7th. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $18.98.

Sunrun Stock Performance

The company has a market capitalization of $3.29 billion, a P/E ratio of 6.48 and a beta of 2.32. The company has a debt-to-equity ratio of 3.44, a current ratio of 1.45 and a quick ratio of 1.09. The stock’s 50 day simple moving average is $13.55 and its two-hundred day simple moving average is $15.66.

Sunrun (NASDAQ:RUN) last announced its earnings results on Wednesday, May 6th. The energy company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.67. Sunrun had a net margin of 17.88% and a return on equity of 14.06%. The company had revenue of $722.23 million for the quarter, compared to analyst estimates of $688.50 million. During the same period in the prior year, the business earned $0.20 earnings per share. Sunrun’s quarterly revenue was up 43.2% on a year-over-year basis. As a group, research analysts expect that Sunrun Inc. will post 1.09 earnings per share for the current year.

Insider Transactions at Sunrun

In other news, CRO Paul S. Dickson sold 127,673 shares of the business’s stock in a transaction on Monday, April 6th. The stock was sold at an average price of $13.25, for a total transaction of $1,691,667.25. Following the completion of the sale, the executive owned 707,126 shares in the company, valued at $9,369,419.50. The trade was a 15.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Danny Abajian sold 132,953 shares of the company’s stock in a transaction on Monday, April 6th. The shares were sold at an average price of $13.25, for a total value of $1,761,627.25. Following the transaction, the chief financial officer directly owned 432,157 shares in the company, valued at $5,726,080.25. This trade represents a 23.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 694,816 shares of company stock worth $9,366,473. Corporate insiders own 3.55% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC boosted its position in shares of Sunrun by 156.9% in the 4th quarter. Farther Finance Advisors LLC now owns 1,449 shares of the energy company’s stock worth $27,000 after purchasing an additional 885 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Sunrun in the fourth quarter valued at about $27,000. Hantz Financial Services Inc. increased its holdings in Sunrun by 59.1% in the fourth quarter. Hantz Financial Services Inc. now owns 1,519 shares of the energy company’s stock valued at $28,000 after purchasing an additional 564 shares during the last quarter. Sycomore Asset Management acquired a new position in Sunrun in the third quarter valued at about $28,000. Finally, Kestra Advisory Services LLC acquired a new position in Sunrun in the fourth quarter valued at about $30,000. Institutional investors own 91.69% of the company’s stock.

Sunrun Company Profile

Sunrun, Inc (NASDAQ: RUN) is a leading provider of residential solar energy systems in the United States. The company designs, installs and maintains rooftop solar panels and battery storage solutions for homeowners under flexible financing arrangements. Customers can choose from leasing, power purchase agreements or solar ownership models, all of which are supported by Sunrun’s network of installation partners and service technicians. Sunrun also offers integrated home energy management services, including its Brightbox battery storage product, which enables customers to store solar energy for use during peak hours or power outages.

Founded in 2007 by Lynn Jurich, Ed Fenster and Nat Kreamer, Sunrun is headquartered in San Francisco, California.