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

Key Points

• Sunrun shares gapped down from a closing price of $15.97 to an opening price of $15.06, last trading at $15.74 with significant volume.
• Multiple brokerages have upgraded their ratings on Sunrun, now holding an average rating of "Moderate Buy" and a target price of $14.63.
• CEO Mary Powell sold a total of 11,509 shares at an average price of $10.80, resulting in a 1.27% decrease in her ownership of the company.

Sunrun Inc. (NASDAQ:RUN - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $15.97, but opened at $15.06. Sunrun shares last traded at $15.74, with a volume of 1,982,805 shares.

Analyst Ratings Changes

RUN has been the topic of a number of research reports. Wall Street Zen upgraded shares of Sunrun from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Glj Research upgraded shares of Sunrun from a "sell" rating to a "hold" rating in a report on Friday, August 15th. The Goldman Sachs Group upped their price target on shares of Sunrun from $12.00 to $15.00 and gave the company a "buy" rating in a report on Monday, May 19th. Mizuho upped their price target on shares of Sunrun from $13.00 to $21.00 and gave the company an "outperform" rating in a report on Monday, July 14th. Finally, TD Cowen upped their price target on shares of Sunrun from $13.00 to $14.00 and gave the company a "buy" rating in a report on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $14.63.

Sunrun Price Performance

The firm's 50-day moving average price is $11.96 and its two-hundred day moving average price is $9.06. The stock has a market cap of $4.02 billion, a PE ratio of -1.50 and a beta of 2.21. The company has a current ratio of 1.41, a quick ratio of 1.02 and a debt-to-equity ratio of 3.70.

Sunrun (NASDAQ:RUN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The energy company reported $1.07 EPS for the quarter, beating analysts' consensus estimates of ($0.18) by $1.25. Sunrun had a negative net margin of 120.59% and a positive return on equity of 14.19%. The company had revenue of $569.34 million during the quarter, compared to analysts' expectations of $555.42 million. During the same quarter in the prior year, the company posted $0.55 earnings per share. Sunrun's revenue for the quarter was up 8.7% compared to the same quarter last year. On average, equities analysts expect that Sunrun Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity at Sunrun

In other Sunrun news, CRO Paul S. Dickson sold 8,010 shares of the company's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $10.81, for a total transaction of $86,588.10. Following the transaction, the executive owned 679,044 shares in the company, valued at approximately $7,340,465.64. This represents a 1.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Mary Powell sold 1,809 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $15.76, for a total transaction of $28,509.84. Following the transaction, the chief executive officer owned 891,431 shares in the company, valued at $14,048,952.56. The trade was a 0.20% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 70,314 shares of company stock valued at $910,283 over the last three months. Company insiders own 3.37% of the company's stock.

Institutional Trading of Sunrun

A number of hedge funds and other institutional investors have recently made changes to their positions in RUN. PGGM Investments increased its stake in shares of Sunrun by 316.6% in the second quarter. PGGM Investments now owns 7,007,258 shares of the energy company's stock worth $57,319,000 after acquiring an additional 5,325,332 shares during the period. Greenvale Capital LLP grew its position in Sunrun by 50.3% during the fourth quarter. Greenvale Capital LLP now owns 13,500,000 shares of the energy company's stock valued at $124,875,000 after buying an additional 4,516,793 shares during the period. Maple Rock Capital Partners Inc. grew its position in Sunrun by 95.6% during the second quarter. Maple Rock Capital Partners Inc. now owns 8,132,648 shares of the energy company's stock valued at $66,525,000 after buying an additional 3,974,464 shares during the period. Sylebra Capital LLC grew its position in Sunrun by 124.0% during the fourth quarter. Sylebra Capital LLC now owns 6,683,162 shares of the energy company's stock valued at $61,819,000 after buying an additional 3,699,405 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Sunrun during the second quarter valued at $9,668,000. Institutional investors and hedge funds own 91.69% of the company's stock.

About Sunrun

Sunrun Inc designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes.