Sunrun (NASDAQ:RUN) Stock Falls 9.9% – Should You Sell?

Sunrun Inc. (NASDAQ:RUN) shares fell 9.9% during mid-day trading on Tuesday. The company traded as low as $8.83 and last traded at $8.7750. 6,735,811 shares were traded during trading, a decline of 29% from the average daily volume of 9,538,159 shares. The stock had previously closed at $9.74.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Weiss Ratings upgraded Sunrun from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday. Royal Bank Of Canada cut their price target on Sunrun from $11.00 to $10.00 and set an “outperform” rating for the company in a research note on Friday, November 6th. TD Cowen reduced their price target on Sunrun from $21.00 to $16.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Morgan Stanley reduced their price target on Sunrun from $15.00 to $10.00 and set an “equal weight” rating for the company in a report on Wednesday, October 14th. Finally, Barclays lowered their price target on Sunrun from $14.00 to $12.00 and set an “equal weight” rating for the company in a research note on Friday, October 9th. Eleven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $13.23.

Sunrun Stock Down 5.7%

The stock has a market cap of $2.07 billion, a P/E ratio of 4.32 and a beta of 2.35. The company has a quick ratio of 1.05, a current ratio of 1.52 and a debt-to-equity ratio of 3.22. The business has a 50-day simple moving average of $8.16 and a 200-day simple moving average of $12.11.

Sunrun (NASDAQ:RUN) last posted its quarterly earnings data on Wednesday, November 4th. The energy company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.40. Sunrun had a net margin of 14.01% and a return on equity of 12.31%. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $757.53 million. During the same period in the prior year, the firm earned $0.06 EPS. Sunrun’s quarterly revenue was up 51.7% compared to the same quarter last year. Analysts expect that Sunrun Inc. will post 1.76 EPS for the current year.

Insider Activity

In other news, CFO Danny Abajian sold 16,734 shares of the firm’s stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $7.76, for a total value of $129,855.84. Following the sale, the chief financial officer directly owned 386,532 shares of the company’s stock, valued at approximately $2,999,488.32. This trade represents a 4.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Maria Barak sold 3,256 shares of Sunrun stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $9.35, for a total value of $30,443.60. Following the completion of the transaction, the chief accounting officer owned 85,006 shares in the company, valued at $794,806.10. The trade was a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 71,975 shares of company stock worth $563,721. Insiders own 3.55% of the company’s stock.

Institutional Trading of Sunrun

Several hedge funds have recently added to or reduced their stakes in RUN. Allworth Financial LP bought a new position in Sunrun in the 2nd quarter worth approximately $25,000. Parallel Advisors LLC grew its stake in shares of Sunrun by 72.2% in the third quarter. Parallel Advisors LLC now owns 6,765 shares of the energy company’s stock worth $53,000 after acquiring an additional 2,837 shares during the last quarter. Nykredit A S bought a new position in Sunrun during the second quarter worth $78,000. Prime Capital Investment Advisors LLC bought a new position in Sunrun during the third quarter worth $80,000. Finally, Brighton Jones LLC bought a new position in Sunrun during the third quarter worth $92,000. Institutional investors own 91.69% of the company’s stock.

About Sunrun

Sunrun Inc. provides residential solar energy systems and battery storage in the United States. Its offerings include system design and installation, energy storage, and ongoing monitoring and maintenance for homeowners. Customers can purchase systems or use arrangements such as leases and power purchase agreements, which allow them to use solar-generated electricity without buying the equipment outright. Sunrun also offers battery storage that can provide backup power and support the use of solar energy when panels are not generating electricity.