Sunrun (NASDAQ:RUN) Stock Price Down 7.3% - Time to Sell?

Key Points

• Shares tumbled 7.3% mid-day to about $12.03 on Wednesday, with roughly 2.8M shares traded—about 70% below its average daily volume.
• Analyst sentiment is mixed (12 Buys, 10 Holds, 1 Sell) with an average rating of "Hold" and an average price target of $18.63 after several recent target cuts.
• Sunrun beat expectations with $0.38 EPS and revenue up 123.5% YoY, but the company has a high debt-to-equity ratio (3.38) and insiders sold about 879,894 shares (~$13M) last quarter.

Sunrun Inc. (NASDAQ:RUN - Get Free Report)'s stock price dropped 7.3% during mid-day trading on Wednesday . The company traded as low as $12.20 and last traded at $12.0250. Approximately 2,800,103 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 9,351,552 shares. The stock had previously closed at $12.97.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on RUN shares. Glj Research reiterated a "sell" rating and set a $4.63 price target on shares of Sunrun in a research note on Thursday, April 16th. Loop Capital set a $12.00 target price on Sunrun in a research note on Tuesday, March 3rd. Barclays cut their target price on Sunrun from $23.00 to $14.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 21st. Susquehanna cut their target price on Sunrun from $24.00 to $19.00 and set a "positive" rating for the company in a research note on Thursday, April 9th. Finally, Mizuho cut their target price on Sunrun from $25.00 to $22.00 and set an "outperform" rating for the company in a research note on Monday, March 2nd. Twelve investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Sunrun currently has an average rating of "Hold" and an average target price of $18.63.

Sunrun Trading Down 7.6%

The firm has a 50 day simple moving average of $13.69 and a 200 day simple moving average of $17.20. The company has a debt-to-equity ratio of 3.38, a quick ratio of 1.27 and a current ratio of 1.66. The firm has a market cap of $2.82 billion, a P/E ratio of 7.03 and a beta of 2.37.

Sunrun (NASDAQ:RUN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The energy company reported $0.38 earnings per share for the quarter, beating the consensus estimate of ($0.08) by $0.46. Sunrun had a return on equity of 11.72% and a net margin of 15.22%.The firm had revenue of $1.16 billion for the quarter, compared to analysts' expectations of $610.29 million. During the same quarter last year, the firm posted $1.41 EPS. The company's revenue was up 123.5% compared to the same quarter last year. On average, equities research analysts predict that Sunrun Inc. will post 0.47 EPS for the current fiscal year.

Insider Transactions at Sunrun

In other Sunrun news, CRO Paul S. Dickson sold 127,673 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 $1,691,667.25. Following the sale, the executive owned 707,126 shares of the company's stock, valued at $9,369,419.50. This trade represents a 15.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jeanna Steele sold 76,478 shares of the firm'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 completion of the sale, the insider directly owned 384,538 shares in the company, valued at approximately $5,095,128.50. The trade was 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. Over the last quarter, insiders have sold 879,894 shares of company stock worth $13,017,496. 3.37% of the stock is owned by insiders.

Hedge Funds Weigh In On Sunrun

A number of large investors have recently modified their holdings of RUN. Farther Finance Advisors LLC raised its holdings in shares of Sunrun by 156.9% during the 4th quarter. Farther Finance Advisors LLC now owns 1,449 shares of the energy company's stock valued at $27,000 after buying an additional 885 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Sunrun in the fourth quarter worth $27,000. Sycomore Asset Management bought a new stake in Sunrun in the third quarter worth $28,000. Hantz Financial Services Inc. boosted its holdings in Sunrun by 59.1% in the fourth quarter. Hantz Financial Services Inc. now owns 1,519 shares of the energy company's stock worth $28,000 after acquiring an additional 564 shares in the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in Sunrun in the fourth quarter worth $30,000. 91.69% of the stock is owned by hedge funds and other institutional investors.

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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