SunCar announces $30 million share buyback plan

NEW YORK - SunCar Technology Group Inc. (Nasdaq: SDA), a company specializing in cloud-based B2B auto services and auto e-insurance in China, has initiated a share repurchase program amid significant stock price volatility. The stock, currently trading at $5.28, has declined nearly 48% in the past week and sits close to its 52-week low. The program, authorized by the company’s board of directors, will target up to $30 million of its outstanding Class A ordinary shares over the next 12 months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The repurchase plan is set to be financed through SunCar’s available cash and the cash flow from its operations. With a current market capitalization of $517 million and a moderate debt level, this strategic move is seen as a reflection of the company’s belief in its future growth and its commitment to delivering shareholder value. InvestingPro subscribers have access to 14 additional key insights about SunCar’s financial health and market position.

Mr. Zaichang Ye, Chairman and CEO of SunCar, stated that the repurchase program underscores the management’s optimism about the company’s business prospects, despite the company’s current weak financial health score of 1.44 out of 5 as reported by InvestingPro. He emphasized that maintaining SunCar’s leadership position in the digitalized enterprise auto services and auto eInsurance markets in China is expected to benefit shareholders. Want deeper insights? InvestingPro offers comprehensive financial analysis and real-time alerts for informed investment decisions.

The company may execute the share buybacks periodically through open market transactions, privately negotiated deals, or other means as permitted by federal securities laws, particularly Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934. However, the exact timing and number of shares to be repurchased will depend on market conditions and other factors, including price and regulatory requirements.

SunCar Technology Group, established in 2007, has been a pioneer in the transformation of the auto services and insurance experience for drivers in China, which boasts the world’s largest passenger vehicle market. Through its cloud-based platforms, the company connects drivers with a broad spectrum of auto services and insurance options via a nationwide network of sales partners.

This press release includes "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and involve various risks and uncertainties, which could cause actual results to differ from those projected.

The information presented in this article is based on a press release statement from SunCar Technology Group Inc.

In other recent news, SunCar Technology Group Inc. announced a follow-on public offering of up to $50 million of its Class A Ordinary Shares. The proceeds are intended for working capital and general corporate purposes, with BTIG, LLC leading the offering and Macquarie Capital Limited and Oppenheimer & Co. Inc. serving as joint bookrunners. These are recent developments in the company’s financial strategies.

In executive shifts, SunCar appointed Breaux Walker as its Chief Strategy Officer, bringing over two decades of experience in business development, corporate finance, and cross-border transactions to the role. Walker’s previous positions include leadership roles at HRJ International, Weild & Co., and JMP Securities, among others.

The company also secured an exclusive contract with Walmart (NYSE:WMT) (China) Investment Co., Ltd. for their 2025 Sam’s Club Premium Membership Car Wash Project. Valued at approximately 49 million RMB (USD 6.8 million), the contract will expand SunCar’s footprint in the automotive after-service market.

In analyst notes, BTIG initiated coverage on SunCar Tech Group with a Buy rating, pointing to a substantial total addressable market in Mainland China. The firm projects the company could achieve over 25% annualized growth in the coming years, with potential catalysts including adoption by gas-powered vehicle manufacturers and a focus on insurance policy renewals.

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