Dividend Stocks

Why Is SunCar Technology (SDA) Stock Down 27% Today?

SunCar Technology (NASDAQ:SDA) stock is falling on Friday after the electrification company announced a $22 million private placement.

Anji Zerun Private Equity Investment Partnership has agreed to a share purchase agreement for 2,173,657 shares of SDA stock. This has it paying SunCar Technology $21,736,569.25 for the shares.

Investors will note that the SunCar Technology share purchase agreement was closed on May 19, 2023. Also worth keeping in mind is the shares bought by Anji Zerun Private Equity Investment Partnership have a six-month lockup period.

What To Know About SDA Stock

One thing investors will want to keep in mind is that SunCar Technology is still incredibly new to the public market. The company made its debut last week through a special purpose acquisition company (SPAC) merger with Goldenbridge Acquisition Limited.

Shares of SDA stock debuted at $4.10 per share on May 18 and have been on the rise since. This saw the company’s stock close out trading on Thursday at $15.06 per share. However, it’s giving up some of those gains this morning with the stock down 27% during pre-market trading. This has it trading for about $11 per share as of Friday morning.

One thing investors will want to consider before investing in SDA stock is its SPAC merger. Companies that go public via SPAC mergers have a tendency to be more volatile. That’s doubly true in the few weeks after they’ve gone public.

Investors looking for more of the most recent stock market news on Friday will want to keep reading!

We’ve got all of the latest stock market news traders need to know about today! A few examples include what’s happening with shares of eFFECTOR Therapeutics (NASDAQ:EFTR) and Appreciate Holdings (NASDAQ:SFR) stock, as well as the biggest pre-market stock movers this morning. All of that is ready to go below!

More Stock Market News For Friday

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.