Solar Stock Runs Up the Charts After Analyst Praise

RUN calls have been extremely popular over the last 10 weeks

Assistant Editor
Apr 16, 2021 at 10:11 AM
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The shares of Sunrun Inc (NASDAQ:RUN) are up 5% at $49.56 this morning, after Simmons Energy upgraded the residential solar stock. Digging deeper, the firm upgraded RUN to "overweight" from "neutral," noting the equity's recent weakness as an attractive entry point with strong growth potential ahead, amid growing demand for residential solar energy. Simmons Energy, which is part of Piper Sandler, set its price target at $77.

The analyst is tossing its two cents in with an already bullish brokerage bunch. In fact, coming into today, 11 of the 13 in coverage called Sunrun stock a "buy" or better, versus just two tepid "holds." Plus, the 12-month consensus price target of $81.17 is a 72% premium to last night's close.

The security yesterday found a floor at the $46 level, its lowest since September 2020, with pressure from the 20-day moving average. However, long-term support from the $45-$50 level helped to keep yesterday's losses in check. Still, the equity has a ways to go to reclaim its year-to-date breakeven, as its currently down 32% in 2021.

Bullish sentiment pervades in the options pits too. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RUN sports a 50-day call/put volume ratio of 4.75, which stands higher than 88% of readings from the past year. This means long calls are being picked up at a quicker-than-usual clip. 

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) stands at an extremely high 96 out of 100, indicating the equity has exceeded volatility expectations during the past 12 months -- a boon for options buyers.

 

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