Sunrun (NASDAQ:RUN) Stock Price Down 4.9% - Should You Sell?

Key Points

• Sunrun shares fell 4.9% to $6.95 in mid-day trading, well below their 50-day moving average of $8.57 and 200-day moving average of $11.35.
• Analyst sentiment is mixed: the consensus rating is Hold, with 12 Buy, seven Hold and two Sell ratings. The average price target is $14.98, although several firms recently lowered their targets.
• The company beat quarterly expectations, reporting $0.42 in EPS versus a $0.23 estimate and revenue of $869.99 million, up 52.8% year over year. However, insiders have sold shares recently, primarily to cover tax obligations.

Sunrun Inc. (NASDAQ:RUN - Get Free Report) dropped 4.9% during mid-day trading on Monday. The stock traded as low as $7.01 and last traded at $6.9450. 1,269,754 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 9,221,352 shares. The stock had previously closed at $7.30.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Wall Street Zen upgraded shares of Sunrun from a "sell" rating to a "hold" rating in a research report on Sunday. Roth Capital reissued a "buy" rating on shares of Sunrun in a research report on Thursday, July 9th. TD Cowen reduced their target price on shares of Sunrun from $21.00 to $16.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Royal Bank Of Canada lowered their price target on shares of Sunrun from $18.00 to $14.00 and set an "outperform" rating for the company in a report on Thursday, August 6th. Finally, Morgan Stanley reduced their price objective on shares of Sunrun from $15.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 14th. Twelve research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $14.98.

Sunrun Price Performance

The company's fifty day moving average is $8.57 and its 200 day moving average is $11.35. The company has a quick ratio of 1.00, a current ratio of 1.42 and a debt-to-equity ratio of 3.34. The stock has a market cap of $1.68 billion, a PE ratio of 4.72 and a beta of 2.44.

Sunrun (NASDAQ:RUN - Get Free Report) last released 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 company had revenue of $869.99 million during the quarter, compared to analyst estimates of $746.87 million. During the same quarter in the prior year, the business earned $1.07 earnings per share. The business's quarterly revenue was up 52.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that Sunrun Inc. will post 1.46 earnings per share for the current fiscal year.

Insider Activity at Sunrun

In related news, insider Jeanna Steele sold 10,042 shares of the firm's stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $7.76, for a total transaction of $77,925.92. Following the completion of the sale, the insider directly owned 451,673 shares of the company's stock, valued at approximately $3,504,982.48. This trade represents a 2.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Danny Abajian sold 16,734 shares of the stock in a transaction dated 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 directly owned 386,532 shares of the company's stock, valued at $2,999,488.32. This represents a 4.15% 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. Insiders have sold a total of 118,719 shares of company stock valued at $1,031,277 over the last 90 days. Corporate insiders own 3.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RUN. Caitong International Asset Management Co. Ltd acquired a new position in Sunrun during the 4th quarter worth $27,000. Allworth Financial LP bought a new position in shares of Sunrun in the second quarter worth $25,000. Summit Securities Group LLC acquired a new position in shares of Sunrun during the first quarter valued at $36,000. Nykredit A S acquired a new position in shares of Sunrun during the second quarter valued at $78,000. Finally, Leonteq Securities AG increased its holdings in shares of Sunrun by 26.8% during the first quarter. Leonteq Securities AG now owns 6,281 shares of the energy company's stock valued at $85,000 after purchasing an additional 1,327 shares during the period. Institutional investors and hedge funds own 91.69% of the company's stock.

About Sunrun

Sunrun Inc is a residential solar energy company that designs, installs, owns and maintains solar energy systems for homeowners. The company typically provides electricity through long-term agreements, including solar leases and power purchase agreements, allowing customers to use electricity generated by rooftop solar systems without purchasing the equipment outright.

Sunrun also offers energy storage solutions, including its BrightBox battery system, which can store electricity for use during outages, periods of high demand or when solar generation is unavailable.

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