TrueCar, Inc. (TRUE) Stock: Is This Technology Stock Worth Your Investment?

Tech Stock News

TrueCar, Inc. (TRUE) is headed up in the market in today’s trading session. The stock, focused in the technology industry, is presently trading at $3.52 after falling -26.97% so far today. As it relates to technology stocks, there are a number of factors that have the potential to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent trending headlines associated with TRUE:

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Aug-09-19 11:02AM Why Shares of TrueCar Are Crashing Today
10:17AM TrueCar’s Loss Soars as Automakers Cut Incentive Spending
01:23AM TrueCar Inc (TRUE) Q2 2019 Earnings Call Transcript
Aug-08-19 04:03PM TrueCar Reports Second Quarter 2019 Financial Results
Aug-07-19 08:05AM Proposed Settlement in Lawsuit for Investors in TrueCar, Inc. (NASDAQ:TRUE) announced by Shareholders Foundation

Nonetheless, when making a decision to invest, investors should take a look at far more than just news, this is especially the case in the ever evolving technology sector. Here’s what’s going on with TrueCar, Inc..

Recent Movement Out of TRUE

While a single session decline, like what we’re seeing from TrueCar, Inc. might lead to fear in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a company. It’s generally smart to take a look at trends experienced by the stock for a period longer than a single trading session. In the case of TRUE, below are the returns on investment that we have seen:

  • Past 7 Days – Over the past week, TRUE has seen a change in value that amounts to -9.06%.
  • Past Month – The monthly returns from TrueCar, Inc. has been -11.40%.
  • Past 3 Months – Over the last 3 months, the company has generated a ROI that comes to -33.15%
  • Bi-Annually – In the last 6 months, we have seen a change that equates to -51.12% from the stock.
  • This Year So Far – Since the open of this year TRUE has resulted in a return on investment of -46.80%.
  • Full Year – Lastly, throughout the past full year, we’ve seen movement in the amount of -58.56% out of TRUE. In this period, the stock has sold at a high of -75.81% and a low price of -25.27%.

Rations That Traders Should Consider

Digging into a few ratios having to do with a stock generally gives prospective investors a view of just how risky and/or rewarding a an investment option may be. Here are a few of the most important ratios to think about when digging into TRUE.

Short Ratio – The short ratio is a tool that is used by investors to measure the amount of short interest. As the ratio heads up, it shows that more investors have a belief that the price of the stock is going to go down. Throughout the sector, strong technology stocks can come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, when it comes to TrueCar, Inc., the stock’s short ratio comes to 4.19.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts as they mature using current assets or quick assets. In the tech sector, several companies rely heavily on continued investor support as they work to bring new technologies to market, these ratios can look damning. However, some better companies in the tech space do have strong current and quick ratios. As it relates to TRUE, the quick and current ratios come to 5.10 and 5.10 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets owned by the company. In this particular case, the book to share value ratio equates to 3.24.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio works out to 1.72.

Moves From Big Money Players

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in TRUE, here’s what we’re seeing:

  • Institutions – Currently, institutional investors own 86.50% of TrueCar, Inc.. On the other hand, it’s important to consider that the ownership held by institutions has changed in the amount of -1.38% throughout the last quarter.
  • Insider Moves – As far as insiders go, those close to the situation currently own 2.40% of the company. Their ownership of the company has changed in the amount of -0.67% over the last 3 months.

How Analysts Feel About TrueCar, Inc.

While it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions when validating your own due diligence when it comes to making an investment decision in the technology sector. Below are the recent moves that we have seen from analysts as it relates to TRUE.

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Mar-25-19 Downgrade The Benchmark Company Buy → Hold $11
Mar-18-19 Resumed Goldman Sell $7 → $6
Feb-15-19 Downgrade RBC Capital Mkts Outperform → Sector Perform $12 → $9
Dec-21-18 Downgrade BTIG Research Buy → Neutral
Dec-17-18 Initiated SunTrust Hold

What We’ve Seen In earnings results

What have ween seen from TRUE in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – Currently, Wall Street analysts expect that TrueCar, Inc. will generate earnings per diluted share that totals up to be 0.13, with 0.00 to be reported in the next financial report. Although this information isn’t based on earnings, since we’re talking about Wall Street analysts, the stock is presently rated a 3.00 on a scale from 1 to 5 where 1 is the poorest Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Throughout the last 5 years, TrueCar, Inc. has created a movement in revenue that works out to 21.40%. EPS through the period have seen movement in the amount of 4.70%.
  • Quarter Over Quarter – In terms of quarter over quarter data, or Q/Q data as it is generally represented in the world of humans, the company has seen a change in earnings that amounts to -52.30%. TRUE has also experienced movement in terms of revenue that amounts to 5.50%.

What You Need To Know About Share Counts

Traders seem to have a heavy interest in the counts of shares both outstanding and available. As it relates to TrueCar, Inc., currently there are 104.69M with a float of 92.61M. These data mean that out of the total of 104.69M shares of TRUE that are out there today, 92.61M are able to trade hands by the public.

I also like to pay attention to the short percent. After all, when a high percentage of the float available for trading is sold short, the overall feeling in the market is that the company is going to fall hard. When it comes to TRUE, the percentage of the float that is currently being sold short sits at 9.63%. Most traders believe that a concerning short percent of the float would be considered to be anything over 40%. Through my work, I have found that a short ratio over 26% is likely a risky play.

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