Sunrun (NASDAQ:RUN) Stock Price Down 6% Following Insider Selling

Key Points

• Shares of Sunrun fell about 6% mid-day to roughly $12.48 (session low $12.71) after the insider sales, with volume around 4.93 million shares—about 47% below the average session volume.
• Senior insiders sold material stakes: CEO Mary Powell (193,002 shares) and Jeanna Steele (76,478) sold mainly to cover tax withholdings on vested awards, while CAO Maria Barak sold 8,039 shares under a pre-arranged Rule 10b5-1 plan.
• Analysts are mixed—MarketBeat shows a consensus Hold rating and an average target of $18.88—while Sunrun recently beat EPS and revenue estimates with strong revenue growth, though it carries a high debt-to-equity ratio (~3.38).

Shares of Sunrun Inc. (NASDAQ:RUN - Get Free Report) traded down 6% during mid-day trading on Monday after an insider sold shares in the company. The company traded as low as $12.71 and last traded at $12.4810. Approximately 4,930,691 shares traded hands during trading, a decline of 47% from the average session volume of 9,363,171 shares. The stock had previously closed at $13.28.

Specifically, CAO Maria Barak sold 8,039 shares of the company's stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $13.67, for a total transaction of $109,893.13. Following the completion of the sale, the chief accounting officer directly owned 72,963 shares in the company, valued at $997,404.21. This represents a 9.92% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeanna Steele sold 76,478 shares of the business's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $13.25, for a total value of $1,013,333.50. Following the sale, the insider directly owned 384,538 shares of the company's stock, valued at approximately $5,095,128.50. This trade represents a 16.59% 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. In other news, CEO Mary Powell sold 193,002 shares of the firm's stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $13.25, for a total value of $2,557,276.50. Following the transaction, the chief executive officer directly owned 934,282 shares in the company, valued at $12,379,236.50. This trade represents a 17.12% decrease in their position. The transaction was disclosed in a document filed 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.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Freedom Capital cut Sunrun from a "strong-buy" rating to a "hold" rating in a report on Tuesday, March 3rd. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Sunrun in a research report on Wednesday, December 17th. Glj Research dropped their price objective on shares of Sunrun from $6.73 to $4.63 and set a "sell" rating for the company in a research report on Thursday, March 26th. Weiss Ratings raised shares of Sunrun from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Monday, March 2nd. Finally, The Goldman Sachs Group lifted their target price on shares of Sunrun from $21.00 to $24.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Twelve research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $18.88.

Sunrun Trading Down 5.5%

The company has a current ratio of 1.66, a quick ratio of 1.27 and a debt-to-equity ratio of 3.38. The business has a 50 day simple moving average of $15.33 and a two-hundred day simple moving average of $17.71. The stock has a market cap of $2.94 billion, a price-to-earnings ratio of 7.34 and a beta of 2.37.

Sunrun (NASDAQ:RUN - Get Free Report) last announced its earnings results on Thursday, February 26th. The energy company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.08) by $0.46. Sunrun had a return on equity of 11.72% and a net margin of 15.22%.The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $610.29 million. During the same period in the prior year, the company posted $1.41 EPS. Sunrun's quarterly revenue was up 123.5% on a year-over-year basis. As a group, equities analysts anticipate that Sunrun Inc. will post -0.43 EPS for the current year.

Institutional Trading of Sunrun

Several institutional investors have recently added to or reduced their stakes in RUN. Salomon & Ludwin LLC lifted its position in shares of Sunrun by 49.2% in the 4th quarter. Salomon & Ludwin LLC now owns 1,693 shares of the energy company's stock worth $31,000 after buying an additional 558 shares during the last quarter. Hantz Financial Services Inc. grew its position in shares of Sunrun by 59.1% during the 4th quarter. Hantz Financial Services Inc. now owns 1,519 shares of the energy company's stock valued at $28,000 after buying an additional 564 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in Sunrun by 3.3% during the fourth quarter. PNC Financial Services Group Inc. now owns 17,481 shares of the energy company's stock worth $322,000 after acquiring an additional 565 shares during the period. Sage Rhino Capital LLC lifted its holdings in Sunrun by 5.2% in the fourth quarter. Sage Rhino Capital LLC now owns 11,468 shares of the energy company's stock worth $211,000 after acquiring an additional 572 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in Sunrun by 3.5% in the third quarter. GAMMA Investing LLC now owns 17,971 shares of the energy company's stock valued at $311,000 after acquiring an additional 607 shares during the period. Institutional investors own 91.69% of the company's stock.

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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