Analysts at KeyCorp have recently downgraded Sunrun Inc. (NASDAQ: RUN) from a “sector weight” to an “underweight” rating, setting a price target of $6.00 for the energy company. This projection suggests a potential downside of approximately 37.76% from Sunrun’s current market price.
In addition to KeyCorp’s downgrade, other analysts have provided mixed ratings on Sunrun’s stock. UBS Group decreased its price target from $17.00 to $12.00 while maintaining a “buy” rating. Conversely, Glj Research reiterated a “sell” rating with a minimal price target of $0.01. BNP Paribas Exane adjusted their rating from “outperform” to “neutral”, establishing a target price of $10.00. Meanwhile, Mizuho set a higher estimate at $13.00 with an “outperform” designation, and Goldman Sachs raised their target price from $12.00 to $15.00, also giving it a “buy” rating. Overall, the consensus among analysts is a “Hold” rating with an average target price of $13.40.
Sunrun’s stock performance has been somewhat volatile, with shares opening at $9.64 recently. The company has a market capitalization of $2.20 billion and reported a quarterly revenue increase of 10.1% year-over-year, amounting to $504.27 million, while earnings per share came in significantly above expectations at $0.20. However, the company continues to face challenges, including a negative net margin of 18.80%.
In terms of insider activity, there were notable transactions, including insider Jeanna Steele selling nearly 10,000 shares, which saw her ownership decrease by 3.30%. Conversely, Director Edward Harris Fenster increased his stake by acquiring 50,000 shares, reflecting confidence in the company’s potential.
Additionally, institutional investors remain heavily involved, with significant stakes held by major firms. Notably, Goldman Sachs increased its holdings by 45.3%, indicating ongoing institutional interest in Sunrun despite recent downgrades.
The solar energy sector, represented by Sunrun, is currently experiencing fluctuations in stock ratings and market projections. However, the continued growth in revenue showcases the company’s resilience and the increasing market demand for renewable energy solutions. As the industry potentially shifts towards sustainability, Sunrun’s future remains at the center of investor interest.
This situation presents an interesting landscape for potential investors and energy sector enthusiasts, reflecting both challenges and opportunities as the market evolves.