Sunrun Inc. [NASDAQ:RUN] shares are showing some interesting activity. The company’s daily low is at $77.50 as the high is reaching $82.37.
If readers are not familiar, Sunrun Inc. is in the Technology sector under the Solar industry. This week, we are watching the stock hit price per sales of 12.17 with an earning per share of -0.02.
As a reference point, the S&P 500 is trading 0.55% over the last 52 weeks, while RUN stock is trading 371.60%.
The Bears are coming
Holding a Market Cap of $10.36 billion, Sunrun Inc. has seen a trading range over the last year of $7.84-$82.42.
For the last five days, RUN is up from its last closing price. The average shares trading hands each day is 5.70M, with average 10-day volume coming in at 9.09 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for RUN. When we apply the Elder Force Index to Sunrun Inc., we are seeing an Elder Force Indicator number of -19428614.1.
The recent performance of the stock is another area that can tell traders how to proceed. RUN is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 122.91. Moreover, the company’s enterprise value has gone from $4.93B to $3.56B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, RUN made a profit of -83.47 million. Sunrun Inc. also saw quarter revenue growth year over year of 12.97%. In addition, the company has operating cash flow of -$300.12 million.
Looking at popular technical indicators, the company’s 5-day moving average is 77.06 compared to the 50-day moving average of 60.61. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. RUN currently holds a 9-day RSI of 58.14%, while 100-day RSI stands at 65.26%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. RUN’s 9-day MACD is 0.40 and the company’s 100-day MACD stands at 36.48.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 5.37% by insiders and 96.32% by institutions. Regarding institutional holdings, Tiger Global Management, LLC owns 24.17%, while the second top holder, Blackrock Inc., currently owns 13.95%.
Over the last six months, insiders have sold 1,227,812 with the most recent transaction from TIGER GLOBAL MANAGEMENT LLC, 10% Owner, with a sell at price 78.06 per share.
Overall, the recommended rating for RUN is Moderate Buy. Currently, the company has 11 analysts watching the stock, and the average quarterly earnings estimate is 0.02. Quarterly revenue estimates are averaging 209.67M with the high estimate reaching 230.3M and the low at 183.57M.
To review, the current 1-year target estimate is sitting at 57.11, while the current price 71.75. Based on this, we expect some pullback on the stock over time given our above analysis.