Why One Investor Slashed Its Sunrun Position But Kept a $129 Million Wager on the Stock

Core Insights - Sunrun's business is showing signs of strengthening despite stock volatility, with a notable increase in revenue and cash generation [1][10][11] Group 1: Company Performance - Sunrun reported $724.6 million in revenue for the third quarter, representing a 35% increase year-over-year [10] - The company achieved its sixth consecutive quarter of positive cash generation, totaling $108 million in the latest period [10] - Net subscriber value improved by 38% year-over-year, while contracted net value creation rose 35% to $279 million [10] Group 2: Shareholder Activity - Maple Rock Capital Partners sold 692,800 shares of Sunrun in the third quarter, reducing its stake but still holding 7.4 million shares valued at $128.6 million [2][3] - Following the sale, Sunrun now constitutes 5.1% of Maple Rock's 13F assets under management [3] Group 3: Market Position - Sunrun's stock price was $17.87, reflecting a 59% increase over the past year, significantly outperforming the S&P 500, which rose 13% in the same timeframe [3] - The company's market capitalization stands at $4.1 billion, with a trailing twelve-month revenue of $2.3 billion and a net income loss of $2.5 billion [4] Group 4: Business Model - Sunrun operates a direct-to-consumer business model, generating revenue through the sale and lease of solar systems and long-term service agreements [9] - The company focuses on residential homeowners across the United States, positioning itself as a key player in the renewable energy sector [6][9]