Sunrun (NASDAQ: RUN) stock fell about 4% in the early trading hours on Monday after being chosen to move from the S&P MidCap 400 to the S&P SmallCap 600 index.
The S&P Global revealed changes to its SmallCap 600 and MidCap 400 indices, effective before the market opens on April 1.
Sunrun (RUN), a leading provider of residential solar energy services, will replace PGT Innovations (NYSE: PGTI) in the S&P SmallCap 600. This transition coincides with MITER Brands’ acquisition of PGT Innovations, a transaction expected to finalize around March 28.
Simultaneously, Roivant Sciences (NASDAQ: ROIV) will fill the void left by Sunrun in the S&P MidCap 400.
Sunrun stock has plummeted over 40% in the past year, continuing a downward trend that initiated after reaching an all-time high of over $95 per share in early 2021.
Earlier this month, RBC Capital Markets revised its price target for Sunrun (RUN) to $15.00 from the previous $17.00 while maintaining an Outperform rating for the company’s stock. This adjustment reflects the industry’s challenges stemming from the impact of rising interest rates, which have affected the valuation of subscriber-based companies like Sunrun.
Sunrun (NASDAQ: RUN) Stock Reaction
RUN stock dropped 3.80% to $12.70 in the early trading hours on Monday. The traders had exchanged hands with 4,205,196 (4.20 million) shares compared to the average daily trading volume of 15.04 million.
