SAN FRANCISCO—Lynn Jurich, a director at Sunrun Inc . (NASDAQ:RUN), recently sold 50,000 shares of the company's common stock. The transaction, executed on November 19, 2024, was conducted under a pre-established Rule 10b5-1 trading plan, which Jurich adopted on March 5, 2024.
The shares were sold at a weighted average price of $9.9446, with sale prices ranging from $9.81 to $10.11 per share. Following the transaction, Jurich retains direct ownership of 1,092,446 shares, which includes 12,321 restricted stock units subject to vesting conditions.
Additionally, Jurich holds an indirect interest in 1,600,000 shares through Jurich Murray Holdings LLC, where she is the sole member. This sale represents a strategic move within the framework of her trading plan and reflects her ongoing management of her investment in Sunrun.
In other recent news, Sunrun, a leading residential solar installer, has been the subject of several revised outlooks from financial firms. Truist Securities adjusted its outlook on Sunrun, reducing the price target from $18.00 to $12.00 while maintaining a Hold rating. This adjustment comes as Sunrun aims to shift towards a more consistent and predictable cash generation model, following a strong recovery in volumes during the third quarter. BMO (TSX:BMO) Capital Markets also adjusted its outlook, reducing the company's price target from $20.00 to $11.00 while maintaining a Market Perform rating. This adjustment followed Sunrun's third-quarter earnings call, where the company reported a robust performance, surpassing $1.5 billion in annual recurring revenue. The company also achieved a 60% storage attachment rate on new installations, a significant rise from the previous year's 33%, and installed 336 megawatt hours of storage, a 92% increase over the previous year. These are some of the recent developments in Sunrun's business operations.
InvestingPro Insights
The recent stock sale by Lynn Jurich comes at a time when Sunrun (NASDAQ:RUN) faces significant challenges, as reflected in its financial metrics and market performance. According to InvestingPro data, Sunrun's stock has experienced a steep decline, with a 31.49% drop in the past month and a 47.56% fall over the last three months. This downward trend aligns with an InvestingPro Tip indicating that the stock has "fared poorly over the last month."
Despite these headwinds, Sunrun maintains a market capitalization of $2.19 billion. The company's Price to Book ratio stands at a low 0.4, suggesting the stock might be undervalued relative to its book value. This is corroborated by an InvestingPro Tip highlighting that Sunrun is "trading at a low Price / Book multiple."
However, investors should be cautious. Sunrun's financial health shows signs of strain, with the company operating at a loss. The adjusted operating income for the last twelve months as of Q3 2024 was -$636.48 million, resulting in a negative operating income margin of -31.26%. An InvestingPro Tip warns that the company "may have trouble making interest payments on debt," which is particularly concerning given its "significant debt burden."
For those considering an investment in Sunrun, it's worth noting that InvestingPro offers 18 additional tips that could provide further insights into the company's prospects. These tips, along with real-time financial data, can be invaluable for making informed investment decisions in the volatile solar energy sector.
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