Sunrun (RUN, $27.40) to buy Vivint Solar at $3.2 billion enterprise value

Solar electricity provider Sunrun  is buying peer Vivint Solar  for about $1.46 billion in stock.

As part of the deal, Vivint Solar shareholders will receive 0.55 a share of Sunrun for each share held, a price that represents a more than 10% premium to Vivint Solar's closing price Monday of $10.63.

Sunrun shareholders will own about 64% of the combined company, while Vivint Solar shareholders will own 36%.

The total enterprise value of the deal is about $3.2 billion.

The companies said their combined customer base of nearly 500,000 "creates a leading owner of solar assets globally, with over 3 gigawatts of solar assets on the balance sheet."

Tickeron's AI-powered scorecard rates RUN a STRONG BUY.

RUN's Aroon indicator reaches into Uptrend on June 30, 2020

For traders, this could mean going long on the ticker or exploring call options in the next month. In 232 of 279 cases where RUN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 83%.

Current price $27.40 is above $20.80 the highest resistance line found by A.I. Throughout the month of 06/03/20 - 07/06/20, the price experienced a +15% Uptrend. During the week of 06/26/20 - 07/06/20, the stock enjoyed a +15% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on July 01, 2020. Traders may consider buying the ticker or exploring call options. In 75 of 92 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 82%.

The 50-day Moving Average crossing above its 200-day Moving Average indicates a buy signal, due to the trend repositioning higher. In 4 of 5 cases where RUN's 50-day Moving Average crossed above its 200-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 80%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RUN advanced for three days, in 276 of 340 cases, the price rose further within the following month. The odds of a continued Uptrend are 81%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 27 of 35 cases where RUN's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 77%.

The Stochastic Indicator entered the overbought zone. Expect a price pull-back in the foreseeable future.

The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 26 of 38 cases where RUN's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 68%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 46 of 57 cases where RUN's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 81%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 82%. During the last month, the daily ratio of advancing to declining volumes was 3.14 to 1.

The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. RUN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is 75 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 91 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of 97 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.94) is normal, around the industry mean (1.81). RUN's P/E Ratio (247.28) is considerably higher than the industry average of (27.02). Projected Growth (PEG Ratio) (0.64) is also within normal values, averaging (4.46). RUN has a moderately low Dividend Yield (0.00) as compared to the industry average of (3.04). P/S Ratio (1.38) is also within normal values, averaging (1.98).

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RUN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock worse than average.