What Happened?
Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 4.2% in the morning session after Goldman Sachs reaffirmed its "buy" rating for the stock and set a price target of $19. The positive analyst view followed the company's successful completion of a $510 million securitization, which involves bundling its residential solar leases and power purchase agreements to raise cash. This transaction marked Sunrun's fifth bond issuance in 2025 and its third in the third quarter alone, enabling the company to raise over $1.5 billion through debt financing during the year. This strong capital-raising activity occurred as the stock had already surged by more than 150% over the previous six months, reflecting significant positive momentum.
After the initial pop the shares cooled down to $17.06, up 2.8% from previous close.
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What Is The Market Telling Us
Sunrun’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.1% on the news that the company announced the pricing of a $510 million securitization of its leases and power purchase agreements.
This marks the residential solar provider's fifth such issuance in 2025 and demonstrates its strong access to capital markets. The deal brings the total non-recourse debt financing raised by Sunrun in the third quarter to over $1.5 billion. According to the company's CFO, Danny Abajian, this access to diverse financing channels is intended to "fuel profitable growth." This consistent ability to raise capital is seen as a positive sign, strengthening Sunrun's financial flexibility and supporting its expansion in the growing residential solar market. The issuance consisted of A- rated notes with a coupon of 6.15%, backed by a portfolio of nearly 30,000 systems.
Sunrun is up 67.1% since the beginning of the year, but at $17.06 per share, it is still trading 9.8% below its 52-week high of $18.92 from September 2024. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $271.68.
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