Sunrun (NASDAQ:RUN) Shares Down 9.9% - Here's Why

Key Points

• Sunrun shares fell 9.9% to $8.78, with trading volume about 29% below its average; the article does not identify a specific catalyst for the decline.
• Analyst views are mixed, but the consensus rating is Hold with a $13.23 average price target; 11 analysts rate the stock Buy, seven Hold, and two Sell.
• Sunrun’s latest quarterly results beat estimates: EPS was $0.56 versus $0.16 expected, while revenue rose 51.7% year over year to $1.10 billion.

Sunrun Inc. (NASDAQ:RUN - Get Free Report) traded down 9.9% during trading on Tuesday. The company traded as low as $8.83 and last traded at $8.7750. 6,735,811 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 9,538,159 shares. The stock had previously closed at $9.74.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on RUN. Glj Research restated a "sell" rating and set a $4.63 target price on shares of Sunrun in a report on Monday, August 17th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $7.00 price target on shares of Sunrun in a research note on Friday, October 9th. Oppenheimer reiterated an "outperform" rating on shares of Sunrun in a research report on Thursday, November 5th. The Goldman Sachs Group reissued a "buy" rating on shares of Sunrun in a research note on Thursday, November 5th. Finally, Morgan Stanley decreased their price objective on shares of Sunrun from $15.00 to $10.00 and set an "equal weight" rating for the company in a report on Wednesday, October 14th. Eleven analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $13.23.

Sunrun Trading Down 10.9%

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 stock has a market capitalization of $2.09 billion, a price-to-earnings ratio of 4.38 and a beta of 2.35. The business has a 50 day simple moving average of $8.15 and a 200-day simple moving average of $12.22.

Sunrun (NASDAQ:RUN - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The energy company reported $0.56 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.40. Sunrun had a return on equity of 12.56% and a net margin of 14.01%. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $757.53 million. During the same quarter last year, the firm posted $0.06 earnings per share. Sunrun's revenue was up 51.7% compared to the same quarter last year. As a group, equities analysts expect that Sunrun Inc. will post 1.55 earnings per share for the current year.

Insider Activity

In other news, CFO Danny Abajian sold 16,734 shares of the company's stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $7.76, for a total value of $129,855.84. Following the completion of the transaction, the chief financial officer owned 386,532 shares in the company, valued at $2,999,488.32. This represents a 4.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Mary Powell sold 24,335 shares of the stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $7.76, for a total transaction of $188,839.60. Following the sale, the chief executive officer directly owned 1,087,200 shares of the company's stock, valued at $8,436,672. This represents a 2.19% 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 ninety days, insiders sold 71,975 shares of company stock worth $563,721. Corporate insiders own 3.55% of the company's stock.

Hedge Funds Weigh In On Sunrun

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE bought a new stake in Sunrun in the 2nd quarter valued at about $29,953,000. Bank of New York Mellon Corp bought a new position in shares of Sunrun during the second quarter worth approximately $18,120,000. Robeco Schweiz AG boosted its position in Sunrun by 28.5% during the third quarter. Robeco Schweiz AG now owns 5,478,228 shares of the energy company's stock valued at $42,566,000 after acquiring an additional 1,214,548 shares during the last quarter. Amundi lifted its stake in Sunrun by 56.3% in the first quarter. Amundi now owns 3,300,626 shares of the energy company's stock valued at $44,798,000 after buying an additional 1,188,564 shares during the period. Finally, Deutsche Bank AG acquired a new stake in shares of Sunrun during the 2nd quarter worth approximately $12,483,000. 91.69% of the stock is owned by institutional investors and hedge funds.

Sunrun Company Profile

Sunrun Inc. provides residential solar energy systems and battery storage in the United States. Its offerings include system design and installation, energy storage, and ongoing monitoring and maintenance for homeowners. Customers can purchase systems or use arrangements such as leases and power purchase agreements, which allow them to use solar-generated electricity without buying the equipment outright. Sunrun also offers battery storage that can provide backup power and support the use of solar energy when panels are not generating electricity.

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