On September 6, 2023, Jeanna Steele, the Chief Legal & People Officer of Sunrun Inc (RUN, Financial), sold 2,233 shares of the company. This move is part of a larger trend of insider selling at Sunrun Inc, as we will explore in this article.
Jeanna Steele is a key figure at Sunrun Inc, serving as the Chief Legal & People Officer. In her role, she oversees the company's legal and human resources departments, ensuring compliance with laws and regulations and fostering a positive work environment for employees. Her insider trades provide valuable insights into the company's financial health and future prospects.
Sunrun Inc is a leading provider of residential solar, storage, and energy services in the United States. The company's mission is to create a planet run by the sun, and it has made significant strides towards this goal by providing clean, affordable solar energy to homeowners across the country.
Over the past year, the insider has sold a total of 27,799 shares and purchased 0 shares. This trend of insider selling raises questions about the company's current valuation and future prospects.
The insider transaction history for Sunrun Inc shows a total of 75 insider sells over the past year, with no insider buys. This trend suggests that insiders may believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, shares of Sunrun Inc were trading for $15.15 apiece, giving the stock a market cap of $3.038 billion. The price-earnings ratio is 36.82, which is higher than both the industry median of 25.11 and the company’s historical median price-earnings ratio. This suggests that the stock may be overpriced relative to its earnings.
However, with a price of $15.15 and a GuruFocus Value of $43.65, Sunrun Inc has a price-to-GF-Value ratio of 0.35. This indicates that the stock may be a possible value trap, and investors should think twice before buying.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while Sunrun Inc's mission and business model are commendable, the recent trend of insider selling, coupled with the company's high price-earnings ratio and possible value trap status, suggest that investors should proceed with caution.
