RUN Eyes Obstacles Amid Fresh Analyst Coverage

Plenty of technical trouble still looms large for Sunrun stock

Deputy Editor
Mar 22, 2021 at 11:40 AM
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Sunrun Inc (NASDAQ:RUN) is up 4.8% to trade at $58.27 this morning, following upbeat comments from Susquehanna Financial. The brokerage firm initiated coverage on the solar energy giant with a "positive" rating, noting that the company could benefit from anticipated growth in the market. Despite today's pop, the equity still has a ways to go before taking back its Jan. 12 record high of $100.93, with plenty of technical trouble looming ahead.

While RUN still sports an impressive 581.9% year-over-year lead, it's been in deep correction mode recently, shedding almost 20% this year alone. And though the $50 region has kept some of these losses in check, the equity's 20-day moving average could keep a lid on today's gains. A little lower down the charts, the formerly supportive 60-day moving average could move in as a ceiling as well.

Analysts are mostly optimistic toward Sunrun stock, despite its subpar technical setup, which could lead to some members of the brokerage bunch handing out bear notes. Of the 11 in coverage, just two called it a "hold," compared to nine "buy" or better ratings. Plus, the 12-month consensus price target of $81.18 is a 41.4% premium to current levels. 

Short sellers are building their positions, too. Short interest rose 23% over the past two reporting periods, and the 27.74 million shares sold short make up 24.1% of RUN's available float, and would take nearly a week to cover, at its average daily pace of trading. 

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