Investors demonstrated heightened interest in Sunrun Inc. (NASDAQ:RUN) on Wednesday, purchasing a significant volume of put options. A total of 145,234 put options were acquired, marking an increase of approximately 184% compared to the average volume of 51,075 for the stock. This uptick in trading activity coincided with a notable rise in Sunrun’s share price.
Sunrun saw its shares trade up 10.8%, closing at $21.11. During the trading session, 7,082,679 shares exchanged hands, a substantial shift from its average volume of 15,299,330 shares. The company maintains a market capitalization of $4.87 billion, with a current ratio of 1.41, a quick ratio of 1.02, and a debt-to-equity ratio of 3.70. Over the past year, Sunrun’s stock has fluctuated between a low of $5.38 and a high of $22.44.
Recent Earnings Report and Analyst Reactions
On August 6, 2023, Sunrun released its quarterly earnings, reporting earnings per share (EPS) of $1.07. This figure surpassed analysts’ consensus estimates, which had predicted a loss of ($0.18) per share by an impressive $1.25. The company reported revenues of $569.34 million, exceeding the consensus estimate of $555.42 million. Year-over-year, Sunrun’s revenue increased by 8.7%, compared to the same quarter last year, when it recorded an EPS of $0.55.
Despite these positive developments, Sunrun’s net margin remains negative at 120.59%, although the company achieved a positive return on equity of 14.19%. Analysts currently forecast a projected EPS of -$0.43 for the current year.
Institutional Investor Activity and Analyst Ratings
Recent trading activity indicates that institutional investors have been adjusting their holdings in Sunrun. Notably, GAMMA Investing LLC increased its stake by 3.5% during the third quarter, now owning 17,971 shares valued at $311,000. Other investors, such as Vanguard Personalized Indexing Management LLC and Osaic Holdings Inc., have also made incremental increases to their positions in the company.
According to data from MarketBeat.com, institutional investors collectively hold 91.69% of Sunrun’s stock. Analyst reports have varied, with Susquehanna raising its price target from $13.00 to $23.00, rating the stock as “positive.” Additionally, Deutsche Bank Aktiengesellschaft increased its price objective from $11.00 to $20.00 while maintaining a “hold” rating.
As of now, one analyst has rated Sunrun with a “Strong Buy,” while fourteen have given it a “Buy” rating, ten have issued a “Hold,” and one has assigned a “Sell” rating. The average rating among analysts is “Moderate Buy,” with an average price target of $18.60.
Sunrun Inc. focuses on the design, development, installation, and maintenance of residential solar energy systems throughout the United States. The company also offers solar products and services, including battery storage solutions and services for commercial developers.
