Co-Founder & Executive Co-Chair of the Board of Sunrun Picks Up 3.7% More Stock

Those following along with Sunrun Inc. (NASDAQ:RUN) will no doubt be intrigued by the recent purchase of shares by Edward Fenster, Co-Founder & Executive Co-Chair of the Board of the company, who spent a stonking US$544k on stock at an average price of US$10.87. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.7%.

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Sunrun Insider Transactions Over The Last Year

In fact, the recent purchase by Co-Founder & Executive Co-Chair of the Board Edward Fenster was not their only acquisition of Sunrun shares this year. Earlier in the year, they paid US$6.80 per share in a US$1.0m purchase. We do like to see buying, but this purchase was made at well below the current price of US$12.70. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In total, Sunrun insiders sold more than they bought over the last year. The average sell price was around US$10.43. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Sunrun

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Does Sunrun Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Sunrun insiders own 2.2% of the company, worth about US$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sunrun Tell Us?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Sunrun, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Sunrun you should be aware of, and 1 of these is concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.