Short Seller Muddy Waters Hits Sunrun With Bear Report - What's Going On?
Portfolio Pulse from Anusuya Lahiri
Short seller Muddy Waters has issued a bearish report on Sunrun Inc (NASDAQ:RUN), accusing the company of exaggerating its Subscriber Values and Earning Assets. The report alleges that Sunrun has overstated its (non-GAAP) Subscribers for years, potentially leading to excess tax credits of around $200 million for 2022. The report also claims that Sunrun's reported Subscribers are consistently higher than the U.S. Energy Information Agency's figures. Following the report, Sunrun's shares fell by 8.48%.
October 25, 2023 | 4:13 pm
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Sunrun's stock price fell by 8.48% following a bearish report by Muddy Waters, which accused the company of exaggerating its Subscriber Values and Earning Assets. The report suggests that Sunrun could have claimed excess tax credits of around $200 million for 2022.
The bearish report by Muddy Waters directly targets Sunrun, accusing the company of financial irregularities. This has led to a significant drop in the company's stock price. If the allegations are proven true, Sunrun could face regulatory scrutiny and potential financial penalties, which would likely further negatively impact the stock price.
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IMPORTANCE 90
RELEVANCE 100