CFO Danny Abajian Sells 7,824 Shares of Sunrun Inc (RUN)

Danny Abajian, the Chief Financial Officer of Sunrun Inc, sold 7,824 shares of the company on June 6, 2023. This move comes amidst a year of insider selling activity for the solar energy company. In this article, we will take a closer look at Danny Abajian’s role in Sunrun Inc, the company’s business, and the relationship between insider buy/sell activities and the stock price.

Danny Abajian has been the CFO of Sunrun Inc since 2018. He has over 20 years of experience in finance and operations, having previously worked at companies such as Gap Inc and Williams-Sonoma. Over the past year, Abajian has sold a total of 21,792 shares and has not purchased any shares.

Sunrun Inc is a leading provider of residential solar energy systems in the United States. The company designs, installs, and maintains solar energy systems for homeowners, helping them save on their electricity bills and reduce their carbon footprint. Sunrun Inc also offers solar energy storage solutions and grid services, making it a comprehensive player in the renewable energy sector.

Insider Trends

Over the past year, there have been no insider buys for Sunrun Inc, while there have been 77 insider sells. This trend can be seen in the following insider trend image:

This trend of insider selling could be a cause for concern for investors, as it may indicate that insiders believe the stock is overvalued or that the company’s prospects are not as strong as they once were.

Valuation

On the day of Danny Abajian’s recent sale, shares of Sunrun Inc were trading at $18.74 apiece, giving the stock a market cap of $4.093 billion. The price-earnings ratio is 271.21, which is higher than the industry median of 23.92 and higher than the company’s historical median price-earnings ratio.

With a price of $18.74 and a GuruFocus Value of $48.19, Sunrun Inc has a price-to-GF-Value ratio of 0.39. This means the stock is considered a possible value trap, and investors should think twice before investing based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:

• Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
• A GuruFocus adjustment factor based on the company’s past returns and growth.
• Future estimates of business performance from Morningstar analysts.

In conclusion, the recent sale of 7,824 shares by CFO Danny Abajian adds to the trend of insider selling for Sunrun Inc. With a high price-earnings ratio and a price-to-GF-Value ratio indicating a possible value trap, investors should carefully consider the implications of these insider transactions before making any decisions regarding the stock.