Sunrun Inc (NASDAQ:RUN) shares are trading lower by 6% to $11.56 Thursday afternoon. The stock is trading lower after inflation impacting American producers showed mixed results. The Producer Price Index (PPI) headline figure didn't meet expectations, causing uncertainty regarding interest rate cuts.
However, the underlying gauge exceeded expectations, with a year-on-year increase of 2.1%, the highest in nearly a year. This uptick, coupled with strong consumer inflation data, elicited significant market reactions...Read More
Why This Matters
The residential solar industry relies heavily on financing options such as leases, power purchase agreements (PPAs), and loans to make solar installations affordable for homeowners. Rising inflation and potential interest rate hikes can increase the cost of borrowing for both Sunrun and its customers.
Higher interest rates could make financing solar installations more expensive, potentially reducing demand for Sunrun's services and impacting its revenue growth.
Mild Producer Price Data Follows Consumer Price Shock, Yet Economists Raise Doubts On Rate Cuts
How To Buy RUN Stock
By now you're likely curious about how to participate in the market for Sunrun – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Sunrun, which is trading at $11.51 as of publishing time, $100 would buy you 8.69 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, RUN has a 52-week high of $23.85 and a 52-week low of $8.43.
