Lee Ja-Chin, a director at Spruce Power Holding Corp (NASDAQ:SPRU), has acquired 1,769 shares of the company's common stock. The transaction, reported in a recent SEC filing, took place on December 3, 2024, at a price of $2.75 per share, totaling approximately $4,864. The purchase comes as the stock trades at a notably low Price/Book ratio of 0.37 and has shown strong momentum with a 28% gain over the past week. According to InvestingPro analysis, the stock is currently trading near its Fair Value. Following this transaction, Ja-Chin's direct ownership in the company stands at 68,933 shares. While insider transactions can provide valuable signals, a comprehensive analysis reveals challenging fundamentals, including significant debt concerns. For deeper insights into insider trading patterns and access to 15 additional ProTips, consider exploring the detailed InvestingPro Research Report available for SPRU.
In other recent news, NJR Clean Energy Ventures (CEV), a subsidiary of New Jersey Resources (NYSE:NJR), has sold its residential solar portfolio to Spruce Power Holding Corporation for $132.5 million. This transaction includes approximately 9,800 residential solar lease agreements, with Spruce Power assuming all responsibilities for the existing leases. The sale is expected to result in a gain for NJR in fiscal 2025, with proceeds aimed at reducing corporate debt and boosting working capital.
On the other hand, Spruce Power announced in its Third Quarter 2024 Earnings Conference Call that it experienced a GAAP net loss of $53.5 million, largely due to a non-cash goodwill impairment charge. However, the company reported a third-quarter revenue of $21.4 million and an operating EBITDA of $17.7 million. Spruce Power also adjusted its full-year 2024 operating EBITDA guidance to a midpoint of $60 million, down from the previously projected $68 million due to unexpected operations and maintenance costs.
Despite these challenges, Spruce Power remains optimistic about its growth trajectory and plans to acquire approximately 10,000 home solar systems by the end of 2024. These recent developments indicate Spruce Power's strategic growth plan and resilience in the solar market.
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