Sunrun (NASDAQ:RUN) Shares Gap Down – Here’s Why

Sunrun Inc. (NASDAQ:RUN)’s share price gapped down before the market opened on Friday . The stock had previously closed at $20.42, but opened at $18.59. Sunrun shares last traded at $13.9790, with a volume of 17,121,690 shares.

Sunrun News Summary

Here are the key news stories impacting Sunrun this week:

• Positive Sentiment: Q4 beat — Sunrun reported $0.38 EPS vs. a consensus loss and revenue of $1.16B (well above estimates), showing strong topline growth and an earnings surprise that validates execution. Sunrun (RUN) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Strong cash profile & guidance — 2025 cash generation was $377M, net change in cash/restricted cash $290M, and 2026 outlook calls for positive cash generation of $250–$450M, supporting financial flexibility. Sunrun Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Operational tailwinds — Storage attachment hit a record 71% and Q4 contracted net value creation was $176M, signaling growing higher-margin product adoption. Sunrun Reports Fourth Quarter and Full Year 2025 Financial Results (Yahoo)
• Positive Sentiment: Analyst recognition — Zacks added RUN to its Rank #1 (Strong Buy) list, which could attract momentum-driven buying. New Strong Buy Stocks for February 27th (Zacks)
• Positive Sentiment: Strategic pivot — Management outlined a pivot toward margin-focused growth with high single- to low double-digit direct business growth targeted for 2026, suggesting focus on profitability. Sunrun outlines growth and pivot (Seeking Alpha)
• Neutral Sentiment: Jefferies reiteration — Jefferies reaffirmed a “hold” rating but kept a $22 price target (implies upside vs. current levels), which is mixed for sentiment—no upgrade but a sizeable PT. Jefferies hold reaffirmed (Benzinga)
• Neutral Sentiment: Earnings call and transcripts available — Management commentary describes steady cash generation and partnership activity; read the call/transcript for guidance detail and risk discussion. Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Profitability and leverage concerns — despite the GAAP EPS beat, Sunrun still reported a large negative net margin on its results and carries elevated leverage, which keeps investor caution high. MarketBeat earnings summary

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on RUN. Wells Fargo & Company boosted their price target on shares of Sunrun from $14.00 to $21.00 and gave the company an “overweight” rating in a research report on Tuesday, November 11th. Oppenheimer boosted their target price on Sunrun from $23.00 to $25.00 and gave the stock an “outperform” rating in a research report on Friday. Deutsche Bank Aktiengesellschaft set a $19.00 target price on Sunrun in a research note on Wednesday, January 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Sunrun in a research report on Thursday, January 22nd. Finally, Glj Research reissued a “sell” rating on shares of Sunrun in a research note on Friday. Twelve analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $20.09.

Sunrun Price Performance

The firm has a market capitalization of $2.98 billion, a P/E ratio of -1.15 and a beta of 2.36. The company has a quick ratio of 1.06, a current ratio of 1.46 and a debt-to-equity ratio of 3.67. The business’s 50-day simple moving average is $19.22 and its 200 day simple moving average is $18.29.

Sunrun (NASDAQ:RUN) last released its earnings results on Thursday, February 26th. The energy company reported $0.38 EPS for the quarter, beating the consensus estimate of ($0.08) by $0.46. The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $610.29 million. Sunrun had a negative net margin of 106.50% and a positive return on equity of 19.34%. The firm’s quarterly revenue was up 123.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.41 EPS. Sell-side analysts forecast that Sunrun Inc. will post -0.43 earnings per share for the current year.

Insider Buying and Selling

In other Sunrun news, Director Lynn Michelle Jurich sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $18.59, for a total value of $929,500.00. Following the completion of the sale, the director owned 651,175 shares in the company, valued at approximately $12,105,343.25. The trade was a 7.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Edward Harris Fenster sold 163,844 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $19.95, for a total transaction of $3,268,687.80. Following the completion of the transaction, the director owned 1,578,895 shares in the company, valued at $31,498,955.25. This represents a 9.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 518,800 shares of company stock worth $9,903,520 in the last 90 days. 3.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sunrun

Hedge funds and other institutional investors have recently made changes to their positions in the business. Contour Asset Management LLC purchased a new stake in shares of Sunrun in the 4th quarter worth about $98,010,000. Maple Rock Capital Partners Inc. lifted its holdings in Sunrun by 95.6% in the second quarter. Maple Rock Capital Partners Inc. now owns 8,132,648 shares of the energy company’s stock worth $66,525,000 after buying an additional 3,974,464 shares during the period. Norges Bank purchased a new stake in Sunrun in the fourth quarter worth about $62,169,000. Voloridge Investment Management LLC bought a new stake in Sunrun during the 3rd quarter valued at approximately $40,193,000. Finally, Robeco Schweiz AG bought a new stake in Sunrun during the 3rd quarter valued at approximately $36,969,000. 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.