Sunrun (NASDAQ:RUN) Trading 8.3% Higher - Should You Buy?

Key Points

• Sunrun shares rose 8.3% to $9.065 in mid-day trading, though trading volume was 56% below the average daily level.
• Analysts have a consensus rating of “Hold” with an average price target of $16.81, implying potential upside from the current price; ratings include 12 Buys, 8 Holds, and 2 Sells.
• Sunrun beat quarterly expectations with EPS of $0.42 versus $0.23 expected and revenue of $870 million, up 52.8% year over year. However, insiders sold $2.14 million of stock over the past 90 days, while institutional investors own 91.69% of shares.

Sunrun Inc. (NASDAQ:RUN - Get Free Report) shares were up 8.3% during mid-day trading on Wednesday . The stock traded as high as $8.85 and last traded at $9.0650. Approximately 4,141,445 shares were traded during trading, a decline of 56% from the average daily volume of 9,479,824 shares. The stock had previously closed at $8.37.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on RUN. Mizuho set a $18.00 price objective on shares of Sunrun in a research note on Thursday, August 6th. Wall Street Zen upgraded shares of Sunrun from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $17.00 price target on shares of Sunrun in a report on Friday, May 8th. UBS Group dropped their price objective on shares of Sunrun from $23.00 to $20.00 and set a "buy" rating on the stock in a report on Tuesday, June 16th. Finally, Wells Fargo & Company decreased their target price on shares of Sunrun from $22.00 to $17.00 and set an "overweight" rating on the stock in a research report on Friday, August 14th. 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's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $16.81.

Sunrun Trading Up 9.1%

The business has a 50-day moving average price of $10.89 and a two-hundred day moving average price of $12.89. 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 company has a market cap of $2.20 billion, a P/E ratio of 6.14 and a beta of 2.36.

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, beating analysts' consensus estimates of $0.23 by $0.19. Sunrun had a net margin of 11.59% and a return on equity of 9.59%. The firm had revenue of $869.99 million for the quarter, compared to analysts' expectations of $746.87 million. During the same period last year, the firm earned $1.07 earnings per share. The business's revenue for the quarter was up 52.8% on a year-over-year basis. On average, analysts predict that Sunrun Inc. will post 1.18 EPS for the current year.

Insider Buying and Selling at Sunrun

In other Sunrun news, CFO Danny Abajian sold 16,495 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $13.19, for a total value of $217,569.05. Following the transaction, the chief financial officer directly owned 420,318 shares of the company's stock, valued at $5,543,994.42. This represents a 3.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Lynn Michelle Jurich sold 50,000 shares of the firm's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $9.96, for a total value of $498,000.00. Following the completion of the transaction, the director owned 367,405 shares in the company, valued at $3,659,353.80. The trade was a 11.98% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 173,045 shares of company stock valued at $2,138,835 in the last 90 days. Company insiders own 3.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RUN. Dimensional Fund Advisors LP raised its stake in shares of Sunrun by 2.6% in the first quarter. Dimensional Fund Advisors LP now owns 6,519,053 shares of the energy company's stock worth $88,375,000 after purchasing an additional 165,196 shares during the last quarter. Invesco Ltd. increased its holdings in shares of Sunrun by 26.6% in the fourth quarter. Invesco Ltd. now owns 5,868,199 shares of the energy company's stock worth $107,975,000 after purchasing an additional 1,231,628 shares during the last quarter. Geode Capital Management LLC grew its position in Sunrun by 3.8% in the fourth quarter. Geode Capital Management LLC now owns 5,663,239 shares of the energy company's stock worth $104,220,000 after acquiring an additional 205,627 shares in the last quarter. Contour Asset Management LLC purchased a new position in shares of Sunrun during the 4th quarter worth about $98,010,000. Finally, Maple Rock Capital Partners Inc. boosted its position in Sunrun by 23.1% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 3,694,548 shares of the energy company's stock valued at $49,433,000 after buying an additional 692,448 shares during the period. 91.69% of the stock is owned by institutional investors and hedge funds.

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.

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