Sunrun Target of Unusually Large Options Trading (NASDAQ:RUN)

Key Points

• Sunrun saw unusually heavy options activity, with investors buying 151,391 call options on Wednesday, about 681% above its normal daily volume.
• The stock jumped sharply during trading, rising $3.53 to $16.34 on volume well above average, while the company’s latest quarterly results beat expectations with EPS of $0.62 versus a projected loss.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $18.98, even as several firms recently cut targets or downgraded the stock.

Sunrun Inc. (NASDAQ:RUN - Get Free Report) was the recipient of unusually large options trading on Wednesday. Investors acquired 151,391 call options on the company. This is an increase of approximately 681% compared to the typical daily volume of 19,383 call options.

Sunrun Price Performance

Shares of Sunrun stock traded up $3.53 during midday trading on Wednesday, hitting $16.34. 28,871,703 shares of the company traded hands, compared to its average volume of 9,263,008. The firm's fifty day moving average price is $13.52 and its 200-day moving average price is $15.69. The stock has a market cap of $3.90 billion, a price-to-earnings ratio of 7.69 and a beta of 2.32. Sunrun has a 12 month low of $6.98 and a 12 month high of $22.44. The company has a debt-to-equity ratio of 3.44, a quick ratio of 1.09 and a current ratio of 1.45.

Sunrun (NASDAQ:RUN - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The energy company reported $0.62 EPS for the quarter, beating the consensus estimate of ($0.05) by $0.67. Sunrun had a net margin of 17.88% and a return on equity of 14.06%. The business had revenue of $722.23 million during the quarter, compared to the consensus estimate of $688.50 million. During the same quarter in the prior year, the firm earned $0.20 EPS. The firm's revenue was up 43.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Sunrun will post 1.09 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on RUN shares. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $17.00 price objective on shares of Sunrun in a research note on Friday, May 8th. Jefferies Financial Group decreased their price objective on shares of Sunrun from $22.00 to $15.00 and set a "hold" rating on the stock in a research note on Tuesday, April 7th. TD Cowen lowered their price objective on shares of Sunrun from $23.00 to $21.00 and set a "buy" rating for the company in a research report on Thursday, May 7th. Zacks Research downgraded Sunrun from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 2nd. Finally, JPMorgan Chase & Co. decreased their price target on Sunrun from $25.00 to $22.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Twelve investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $18.98.

Insider Activity

In other Sunrun news, CRO Paul S. Dickson sold 127,673 shares of Sunrun stock in a transaction on Monday, April 6th. The shares were sold at an average price of $13.25, for a total transaction of $1,691,667.25. Following the completion of the transaction, the executive directly owned 707,126 shares of the company's stock, valued at $9,369,419.50. The trade was a 15.29% decrease in their ownership of the stock. 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. Also, insider Jeanna Steele sold 76,478 shares of the stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $13.25, for a total transaction of $1,013,333.50. Following the completion of the transaction, the insider directly owned 384,538 shares in the company, valued at $5,095,128.50. The trade was a 16.59% decrease in their ownership of the stock. 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 694,816 shares of company stock valued at $9,366,473. 3.55% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RUN. Quantbot Technologies LP boosted its stake in shares of Sunrun by 3,147.1% during the third quarter. Quantbot Technologies LP now owns 153,164 shares of the energy company's stock valued at $2,648,000 after purchasing an additional 148,447 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Sunrun by 1.2% in the third quarter. Vanguard Group Inc. now owns 24,193,170 shares of the energy company's stock valued at $418,300,000 after buying an additional 288,945 shares during the period. Handelsbanken Fonder AB increased its stake in shares of Sunrun by 6.7% in the fourth quarter. Handelsbanken Fonder AB now owns 2,314,802 shares of the energy company's stock valued at $42,592,000 after buying an additional 145,285 shares during the period. LBP AM SA bought a new position in Sunrun in the 4th quarter valued at approximately $3,307,000. Finally, Intech Investment Management LLC raised its holdings in Sunrun by 33.1% in the 4th quarter. Intech Investment Management LLC now owns 324,632 shares of the energy company's stock valued at $5,973,000 after buying an additional 80,695 shares during the last quarter. 91.69% of the stock is currently owned by 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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