DENVER - Spruce Power Holding Corporation (NYSE: SPRU), a leader in the distributed solar energy sector, has announced a new share repurchase initiative, authorizing the buyback of up to $50 million of its common stock by May 15, 2027. Trading at $1.58 per share and showing a 59.8% decline over the past year, according to InvestingPro data, the stock appears undervalued based on Fair Value analysis. This decision follows the conclusion of its prior repurchase program, which ends today.
The Share Repurchase Program will allow the company to conduct buybacks through various means, including open market and privately negotiated transactions, as well as through Rule 10b5-1 and Rule 10b-18 trading plans. While InvestingPro data shows management has been actively buying back shares, the company operates with a significant debt burden of $711.46 million and faces challenges with cash flow generation. Spruce Power has clarified that there is no obligation to repurchase a certain number of shares or spend a specific dollar amount, and the program can be suspended at any time based on a range of factors such as share price, market conditions, and other investment opportunities.
During the previous share repurchase program, which started on May 15, 2023, and concluded just before the launch of the new program, Spruce Power reacquired approximately 1.87 million shares. The average cost of these shares, including transaction expenses, was around $4.33 each.
Spruce Power operates a subscription-based service for homeowners in the United States, enabling them to access rooftop solar power and battery storage without significant upfront investments or maintenance costs. With a market capitalization of $28.56 million and an overall "WEAK" financial health score according to InvestingPro, the company currently manages the cash flows from approximately 85,000 residential solar assets and contracts nationwide. Get access to 18 additional ProTips and comprehensive analysis in the Pro Research Report, available exclusively to InvestingPro subscribers.
The company’s announcement includes forward-looking statements, which are projections based on current expectations and involve certain risks and uncertainties. With a current ratio of 2.29 but negative returns on equity and assets, Spruce Power cautions investors not to place undue reliance on these forward-looking statements, which are not guaranteed and are subject to change. The company also notes that actual results could differ materially from those projected due to a variety of risk factors and uncertainties. For deeper insights into SPRU’s valuation and financial health metrics, explore the comprehensive analysis available on InvestingPro.
This news is based on a press release statement from Spruce Power Holding Corporation.
In other recent news, Spruce Power Holding Corporation reported its financial results for the fourth quarter of 2024, highlighting a year-over-year revenue increase from $15.7 million to $20.2 million. For the full year, revenue rose to $82.1 million, up from $79.9 million in 2023, despite the company facing a net loss of $5.9 million. Spruce Power has also launched SPRuSE PRO, a new solar servicing platform, and finalized a significant servicing agreement with ADT Solar. In a separate development, the company announced that its Chief Financial Officer, Sarah Wells, will resign effective May 14, 2025, with an interim CFO to be appointed before her departure. The company is actively seeking a permanent replacement with expertise in capital markets. Spruce Power’s management has reiterated its focus on maintaining long-term growth in revenues and cash flows. The company refrained from providing specific financial guidance due to ongoing market volatility but emphasized strategic priorities including financial stability and operational efficiency. Additionally, Spruce Power continues to manage a substantial long-term debt of $730.6 million with a 6% blended interest rate.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.