Sunrun's 15-min chart shows Bollinger Bands expanding upward and KDJ golden cross.

Sunrun's 15-minute chart is currently exhibiting a bullish trend, as indicated by the expanding Bollinger Bands upward and the KDJ Golden Cross at 10/06/2025 12:00. This suggests that the market is being driven by strong buying activity, and the momentum of the stock price is shifting towards the upside, with potential for further increases.

Sunrun Inc (RUN) experienced a notable surge in its share price, climbing 13.5% to $19.62, following dynamic market activity and a positive analyst upgrade. This upward movement, which added $2.33 to the stock's value, highlights the significant influence of market dynamics on Sunrun's valuation.

Sunrun Inc is a leading player in the residential solar energy sector in the United States. The company is engaged in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems. Sunrun operates within the Technology sector, specifically in the Semiconductors industry, with a market capitalization of approximately $4.5 billion.

The recent stock price increase follows an upgrade by Jefferies from Hold to Buy, with a new price target of $21. The upgrade anticipates robust cash generation through the second half of 2025 and strong growth into 2026, despite the phase-out of 25D consumer tax credits. Analyst Julien Dumoulin-Smith predicts that Sunrun's focus on PPA/lease contracts will position the company well for future opportunities, even in the face of potential market contractions.

Sunrun's financial health presents a mixed picture. The company reported a revenue of $2.13 billion, reflecting a modest growth rate of 5.3% over the past three years. However, profitability remains a challenge, with an EPS of -11.61 and a net margin of -120.59%. The gross margin stands at 19.71%, indicating some level of operational efficiency, but the operating margin is a concerning -22.97%. On the balance sheet front, Sunrun's financial strength is under pressure, with a debt-to-equity ratio of 4.83, indicating a high level of leverage. The Altman Z-Score of -0.56 places the company in the distress zone, implying a potential risk of bankruptcy within the next two years.

Valuation metrics suggest that the stock is trading near its historical highs. The P/S ratio of 2.22 and P/B ratio of 1.53 are close to their respective one-year highs. Analyst sentiment is mixed, with a recommendation score of 2.4, suggesting a hold position. Technical indicators such as the RSI of 58.39 and moving averages indicate a neutral to slightly bullish trend.

Institutional ownership is high at 103.05%, reflecting strong interest from large investors. However, insider activity shows a trend of selling, with 14 insider sell transactions in the past three months, totaling over $1 million in value.

Sunrun's financial health grades highlight several areas of concern. The company's financial strength is rated as poor, primarily due to its high debt levels. The Piotroski F-Score of 2 indicates weak business operations. Sector-specific risks include regulatory changes in the solar industry and potential shifts in consumer demand for residential solar systems. Sunrun's beta of 2.66 suggests high volatility, which could lead to significant price fluctuations.

In conclusion, while Sunrun's recent stock performance is noteworthy, the company's underlying financial challenges and valuation metrics warrant careful consideration. Investors should weigh the potential risks and rewards before making investment decisions.