New York, NY – Shares of Sunrun Inc. (Nasdaq: RUN), a leading residential solar, battery storage, and energy services company, experienced a massive rally in today’s trading session. The stock closed at $10.50, marking a remarkable gain of $1.51, or 16.80%, for the day.
The bullish momentum was evident from the start. After opening at $9.12, above the previous day’s close of $8.99, the stock embarked on a steady climb throughout the day, reaching an intraday high of $10.76 before settling slightly lower at the close. The surge was backed by exceptionally strong investor interest, with trading volume soaring to over 33.4 million shares, significantly higher than its average volume of around 22.4 million.
This powerful move has pushed the stock price very close to its 1-year analyst target estimate of $10.62. However, following the strong regular session, the stock saw some minor profit-taking in after-hours trading, dipping to $10.40 as of 2:19 PM EDT.
Despite the explosive daily performance, the company’s underlying financials present a more challenging picture. Sunrun is currently not profitable, with a deeply negative trailing twelve-month (TTM) Earnings Per Share (EPS) of -12.21. Furthermore, the stock is known for its high volatility, confirmed by a Beta of 2.61.
Should You Buy or Sell RUN Stock Today?
The dramatic price action in Sunrun stock presents investors with a classic dilemma between momentum and fundamentals.
Potential Bullish Signals (Reasons to Consider Buying):
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Explosive Momentum: A single-day gain of nearly 17% on high volume is a powerful bullish signal that has captured the market’s attention.
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Strong Buying Pressure: The significantly higher-than-average volume suggests strong conviction from buyers who drove the price up throughout the session.
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Positive Sector Sentiment: The rally could be part of broader positive sentiment in the renewable energy sector, potentially providing a tailwind for the stock.
Potential Bearish Signals (Reasons to Consider Selling or Holding):
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Lack of Profitability: The company’s significant negative EPS of -12.21 is a major red flag for fundamental and long-term value investors.
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Extreme Volatility: A Beta of 2.61 indicates the stock is highly volatile and prone to sharp price swings in either direction, representing a high level of risk.
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Approaching Analyst Target: The stock is now trading very close to its 1-year analyst target of $10.62, which could act as a resistance level and limit further near-term upside.
Opinion
Sunrun’s stock had an undeniably spectacular day, making it a focal point for momentum traders. The sheer force of the rally on high volume cannot be ignored. However, this bullish technical picture is set against a backdrop of weak fundamentals, most notably the company’s unprofitability.
Investors should be extremely cautious. While the momentum could carry the stock higher in the short term, the high volatility and lack of profits make it a very risky investment. The stock has now moved from being significantly undervalued relative to its analyst target to being priced right at it, which may temper enthusiasm for new buyers. This rally appears best suited for traders with a very high risk tolerance, while long-term investors may want to see a clear path to profitability before committing capital.
Disclaimer: This article is for informational purposes only and is not intended as financial advice. All investment decisions should be made based on your own research and consultation with a qualified financial advisor.
Frequently Asked Questions (FAQ) about RUN Stock
1. How much did Sunrun (RUN) stock increase today?
Sunrun stock closed the regular trading session up by $1.51, or 16.80%, at a price of $10.50.
2. Is Sunrun a profitable company?
No. According to the data provided, Sunrun has a negative Earnings Per Share (EPS TTM) of -12.21, indicating it is not currently profitable.
3. What was the trading volume for RUN stock?
The trading volume was over 33.4 million shares, which is significantly higher than its average volume of 22.4 million shares, indicating strong investor activity.
4. Is Sunrun (RUN) stock considered a volatile investment?
Yes, it is highly volatile. Its Beta of 2.61 suggests it is more than two and a half times as volatile as the overall stock market.
5. What is the analyst price target for Sunrun stock?
The 1-year target estimate for Sunrun is $10.62, which is very close to its recent closing price of $10.50.
6. What is the 52-week price range for RUN?
The 52-week range for Sunrun stock is between $5.38 and $22.26. Today’s close at $10.50 places it in the lower half of this range, despite the significant daily gain.
