Sunrun Stock Shines on Earnings, Tesla Team-Up

Sunrun announced a strong earnings report and is building on its big quarter

Sunrun Inc (NASDAQ:RUN) stock is surging today, last seen up 13.9% to trade at $18.78, headed for its largest single-day percentage pop since mid-July. The solar panel company reported better-than-expected second-quarter results, with earnings of 55 cents per share far surpassing the 33 cent loss anticipated by analysts. Furthermore, the company announced it was teaming up with Tesla (TSLA) for a power plant in Texas. 

A flood of analysts lifted their price targets on Sunrun stock in response, the highest coming from Oppenheimer to $22 from $19. There’s still room for more bull notes, considering the consensus 12-month price target of $20.81 is now only a 7.1% premium from its current perch.

Options bulls are chiming in as well, with over 14,000 calls already exchanged already today — double the volume typically seen at this point. The January 2025 35-strike call is the most active contract, followed by the August 19 call.

On the charts, psychologically-significant $20 level — which kept a cap on a rally at the end of 2023 — still lingers above as pressure. Year to date, the equity is down 6.5%, but carries a 65% lead this quarter.  A short squeeze could help RUN past that $20 level. Short interest increased by 7% in the most recent reporting period, and the 55.91 million shares sold short accounts for nearly 26% of the equity’s total available float. At the stock’s average pace of trading, it would take shorts more than four trading days to buy back their bearish bets. 

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