Sunrun (NASDAQ:RUN) Sets New 52-Week Low - Here's Why

Key Points

• Sunrun shares fell 6.5%, reaching a new 52-week low of $8.03 and last trading near $7.87, well below its 50-day and 200-day moving averages.
• Analysts have lowered price targets, though the consensus target remains $16.70; ratings are mixed, with the overall consensus at “Hold.”
• Despite the stock weakness, Sunrun reported stronger-than-expected quarterly results, including EPS of $0.42 versus $0.23 expected and revenue growth of 52.8% year over year. However, insiders sold 171,015 shares during the quarter.

Sunrun Inc. (NASDAQ:RUN - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $8.03 and last traded at $7.8710, with a volume of 885074 shares traded. The stock had previously closed at $8.35.

Wall Street Analysts Forecast Growth

Several brokerages have commented on RUN. Wells Fargo & Company lowered their price target on Sunrun from $22.00 to $17.00 and set an "overweight" rating on the stock in a report on Friday, August 14th. The Goldman Sachs Group decreased their price objective on shares of Sunrun from $15.00 to $13.00 and set a "buy" rating for the company in a report on Monday. Zacks Research lowered shares of Sunrun from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 2nd. Weiss Ratings upgraded shares of Sunrun from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, September 8th. Finally, Mizuho set a $18.00 target price on shares of Sunrun in a research report on Thursday, August 6th. Twelve equities research 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's stock. According to data from MarketBeat.com, Sunrun has an average rating of "Hold" and a consensus target price of $16.70.

Sunrun Trading Down 6.5%

The company has a debt-to-equity ratio of 3.34, a current ratio of 1.42 and a quick ratio of 1.00. The company has a market capitalization of $1.88 billion, a price-to-earnings ratio of 5.29 and a beta of 2.37. The business has a fifty day moving average price of $9.53 and a 200 day moving average price of $11.92.

Sunrun (NASDAQ:RUN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.19. Sunrun had a net margin of 11.59% and a return on equity of 9.59%. The business had revenue of $869.99 million for the quarter, compared to the consensus estimate of $746.87 million. During the same quarter last year, the company posted $1.07 earnings per share. Sunrun's quarterly revenue was up 52.8% on a year-over-year basis. On average, equities analysts expect that Sunrun Inc. will post 1.18 EPS for the current fiscal year.

Insider Transactions at Sunrun

In other news, CAO Maria Barak sold 3,278 shares of the company's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $12.17, for a total transaction of $39,893.26. Following the completion of the transaction, the chief accounting officer owned 90,033 shares of the company's stock, valued at approximately $1,095,701.61. This represents a 3.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Paul S. Dickson sold 15,613 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $13.18, for a total transaction of $205,779.34. Following the completion of the sale, the executive owned 839,539 shares of the company's stock, valued at approximately $11,065,124.02. The trade was a 1.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 171,015 shares of company stock worth $2,111,653. 3.55% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sunrun

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Contour Asset Management LLC bought a new stake in shares of Sunrun in the 4th quarter worth approximately $98,010,000. Norges Bank acquired a new position in shares of Sunrun in the fourth quarter valued at $62,169,000. Bank of America Corp DE acquired a new position in shares of Sunrun in the second quarter valued at $29,953,000. Bank of New York Mellon Corp bought a new position in Sunrun in the second quarter worth $18,120,000. Finally, Amundi lifted its position in Sunrun by 56.3% in the first quarter. Amundi now owns 3,300,626 shares of the energy company's stock worth $44,798,000 after purchasing an additional 1,188,564 shares during the period. 91.69% of the stock is currently owned by institutional investors.

About Sunrun

Sunrun Inc is a provider of residential solar energy and battery-storage solutions. The company designs, sells, installs, owns and maintains solar energy systems for homeowners, helping customers generate electricity on-site and reduce reliance on conventional utility power.

Sunrun offers solar systems through customer purchase arrangements as well as subscription-based plans, including leases and power purchase agreements. Under these arrangements, Sunrun may retain ownership of the system and provide ongoing monitoring, maintenance and customer support.

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