Solar Names Slide As Short Sellers Circle Sunrun Stock: Here's What Happened


Sunrun Inc RUN and Hannon Armstrong Sustainable Infrastructure Capital Inc HASI shares fell Wednesday as well known short sellers targeted the names on Twitter with bearish commentary.

Enphase Energy Inc ENPH and several other solar names also faced selling pressure throughout Wednesday's trading session.

What Happened: Muddy Waters Capital took to Twitter Inc TWTR Wednesday to highlight a new report in which the short seller talks about how Sunrun and Hannon Armstrong are "non-economic BS artists."

Muddy Waters also noted that the environmental, social, and governance (ESG) space is "filled with carnival barkers."

Kynikos Associates founder and legendary short seller Jim Chanos chimed in on the social media platform, calling Sunrun's accounting practices "indefensible."

"If $RUN continues using a 5% discount rate for their 3Q NPV calculation, with their own debt yielding over 10% at 9/30, that tells you all you need to know about their accounting. It’s indefensible at this point," Chanos said.

GLJ Research's Gordon Johnson also joined the bear gathering, suggesting that Sunrun is stealing from U.S. taxpayers.

"What about the 'appraisal' values they show to the IRS? Is it not tax deception (stealing from US taxpayers)?"

Related Link: EXCLUSIVE: Longtime Tesla Bear Says Cathie Wood Is A Destroyer Of Capital, '100% Incorrect' About Elon Musk-Led Company

RUN, HASI, ENPH Price Action: Sunrun closed Wednesday down 7.94% at $28.05. HASI closed down 7.43% at $29.28 and Enphase closed down 9.25% at $261.60.

Photo: Sebastian Ganso from Pixabay.

Market News and Data brought to you by Benzinga APIs
Posted In: Short SellersMoversTrading IdeasGordon JohnsonJim ChanosKynikos CapitalMuddy WatersMuddy Waters Capital
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!