JPMorgan Chase & Co. Has Lowered Expectations for Sunrun (NASDAQ:RUN) Stock Price

Key Points

• JPMorgan cut its price target on Sunrun from $25 to $22 but kept an overweight rating, with the new target implying roughly an 82% upside from the prior close.
• Sunrun reported a strong quarter, beating estimates with EPS of $0.38 versus ($0.08) expected and revenue of $1.16B versus $610M expected, a 123.5% year‑over‑year revenue increase and a 15.22% net margin.
• Insiders sold large stakes on April 6 (CFO 132,953 shares; CEO 193,002 shares) to cover tax withholding on vested awards; insiders now own 3.37% of the stock while institutional ownership is 91.69%.

Sunrun (NASDAQ:RUN - Get Free Report) had its price objective lowered by research analysts at JPMorgan Chase & Co. from $25.00 to $22.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the energy company's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 81.82% from the stock's previous close.

RUN has been the subject of several other reports. Raymond James Financial began coverage on Sunrun in a research report on Monday, January 12th. They set a "market perform" rating for the company. Jefferies Financial Group decreased their target price on Sunrun from $22.00 to $15.00 and set a "hold" rating for the company in a research note on Tuesday, April 7th. Glj Research dropped their price target on shares of Sunrun from $6.73 to $4.63 and set a "sell" rating on the stock in a research note on Thursday, March 26th. Susquehanna dropped their price target on shares of Sunrun from $24.00 to $19.00 and set a "positive" rating on the stock in a research note on Thursday, April 9th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of Sunrun from $19.00 to $16.00 and set a "hold" rating for the company in a research report on Thursday, April 9th. Twelve analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Sunrun has a consensus rating of "Moderate Buy" and a consensus price target of $19.19.

Sunrun Stock Performance

Shares of NASDAQ:RUN remained flat at $12.10 during trading hours on Thursday. 10,979,283 shares of the company's stock were exchanged, compared to its average volume of 9,525,624. Sunrun has a 52 week low of $5.38 and a 52 week high of $22.44. The business's 50-day moving average is $14.93 and its 200 day moving average is $17.61. The stock has a market cap of $2.84 billion, a PE ratio of 7.08 and a beta of 2.37. The company has a quick ratio of 1.27, a current ratio of 1.66 and a debt-to-equity ratio of 3.38.

Sunrun (NASDAQ:RUN - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The energy company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.46. The business had revenue of $1.16 billion during the quarter, compared to analysts' expectations of $610.29 million. Sunrun had a net margin of 15.22% and a return on equity of 11.72%. The company's revenue for the quarter was up 123.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.41 EPS. Analysts forecast that Sunrun will post -0.43 EPS for the current year.

Insider Transactions at Sunrun

In other news, CFO Danny Abajian sold 132,953 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $13.25, for a total transaction of $1,761,627.25. Following the transaction, the chief financial officer directly owned 432,157 shares in the company, valued at approximately $5,726,080.25. This trade represents a 23.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mary Powell sold 193,002 shares of Sunrun stock in a transaction on Monday, April 6th. The shares were sold at an average price of $13.25, for a total transaction of $2,557,276.50. Following the completion of the transaction, the chief executive officer directly owned 934,282 shares in the company, valued at $12,379,236.50. The trade was a 17.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 879,894 shares of company stock worth $13,017,496. Insiders own 3.37% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RUN. Contour Asset Management LLC purchased a new position in Sunrun during the 4th quarter worth $98,010,000. Norges Bank purchased a new stake in shares of Sunrun in the fourth quarter valued at about $62,169,000. Voloridge Investment Management LLC acquired a new position in shares of Sunrun during the third quarter worth about $40,193,000. Robeco Schweiz AG purchased a new position in Sunrun during the third quarter worth about $36,969,000. Finally, BNP PARIBAS ASSET MANAGEMENT Holding S.A. lifted its position in Sunrun by 132.9% in the third quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 2,821,106 shares of the energy company's stock valued at $48,777,000 after purchasing an additional 1,609,803 shares during the period. 91.69% of the stock is owned by hedge funds and other institutional investors.

About Sunrun

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.

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