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Sunrun Inc. (RUN) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5Moderate Confidence

Technology · Solar

Earnings in 6 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Engine safety override at $12.59: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Negative price momentum.

Sunrun is the largest US residential solar provider by installed fleet, offering residential solar and battery storage as a subscription service (typically 20-25 year terms) with no upfront costs. As of December 31, 2025, it had 8,404 MW of networked solar energy capacity and... Read more

$12.59+40.4% A.UpsideScore 5.5/10#3 of 9 Solar
Stop $11.72Target $17.70(analyst − 10%)A.R:R 3.5:1
Analyst target$19.67+56.2%18 analysts
$17.70our TP
$12.59price
$19.67mean
$30

Sell if holding. Engine safety override at $12.59: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 44. Score 5.5/10, moderate confidence.

Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and earnings proximity 6d<=7d. Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Geographic: California
Cyclical trap - fwd PE 21x vs trail 7x (3.0x)
Quality below floor (3.2 < 4.0)

Key Metrics

P/E (TTM)7.0
P/E (Fwd)21.0
Mkt Cap$2.8B
EV/EBITDA31.1
Profit Mgn15.2%
ROE-22.1%
Rev Growth123.5%
Beta2.37
DividendNone
Rating analysts30

Quality Signals

Piotroski F4/9

Options Flow

P/C0.76neutral
IV111%elevated
Max Pain$6-52.3% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographicCalifornia
    10-K Item 1A: 'California, which is one of our key markets and represents over 45% of our customer base, as of December 31, 2025'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Volatile — 5.8% daily ATR makes tight stops impractical. Position-size conservatively.static

Volatility
0.0
Implied Vol
0.0
Short Interest
0.8
Debt Equity
2.0
Beta
2.1
Max Pain Risk
3.0
Days To Cover
3.6
Put Call
8.3
High short interest justified: 27%High IV: 111%Above max pain $6Concentration risks: 1 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Obv
1.0
Ma Position
2.2
Rsi
4.5
Macd
7.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+4.0%/30d) — pullback in uptrend, not confirmed weakness

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Roe
0.0
Roa
0.0
Fcf Quality
0.0
Gross Margin
2.1
Operating Margin
3.4
Piotroski F
4.4
Moat
5.0
Current Ratio
6.0
Net Margin
7.6
Strong margins: 15%Earnings quality RED FLAG: -589% FCF/NINo competitive moat
GatesMomentum 3.0<4.5EARNINGS PROXIMITY 6d<=7dA.R:R 3.5 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
44 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $11.67Resistance $14.72

Price Targets

$12
$18
A.Upside+40.6%
A.R:R3.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Cyclical trap - fwd PE 21x vs trail 7x (3.0x)
! Quality below floor (3.2 < 4.0)
! Value-trap signals (2/5): Margin compression (op margin -28.1%), Material insider selling (15 sells, 0.09% of cap)

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-06 (6d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is RUN stock a buy right now?

Sell if holding. Engine safety override at $12.59: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 44. Prior stop was $11.72. Score 5.5/10, moderate confidence.

What is the RUN stock price target?

Take-profit target: $17.70 (+40.4% upside). Prior stop was $11.72. Stop-loss: $11.72.

What are the risks of investing in RUN?

Concentration risk — Geographic: California; Cyclical trap - fwd PE 21x vs trail 7x (3.0x); Quality below floor (3.2 < 4.0).

Is RUN overvalued or undervalued?

Sunrun Inc. trades at a P/E of 7.0 (forward 21.0). TrendMatrix value score: 6.4/10. Verdict: Sell.

What do analysts say about RUN?

30 analysts cover RUN with a consensus score of 3.6/5. Average price target: $20.

What does Sunrun Inc. do?Sunrun is the largest US residential solar provider by installed fleet, offering residential solar and battery storage...

Sunrun is the largest US residential solar provider by installed fleet, offering residential solar and battery storage as a subscription service (typically 20-25 year terms) with no upfront costs. As of December 31, 2025, it had 8,404 MW of networked solar energy capacity and $21.1B in Gross Earning Assets, financed through tax equity and non-recourse debt.

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