TrueCar, Inc. (TRUE) Stock: Seeing Gains In Today’s Session

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TrueCar, Inc. (TRUE) is gaining in the market in today’s trading session. The company, focused in the technology sector, is currently trading at $3.45 after heading up 5.18% so far in today’s session. As it relates to tech companies, there are several factors that have the ability to cause movement in the market. One of the most common is news. Here are the recent headlines centered around TRUE:

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Nov-01-19 09:00AM TrueCars ALG Forecasts New Car Average Transaction Price to Increase 2.6% Year over Year for October 2019
Oct-28-19 10:00AM GM Strike and Lower Automaker Incentive Spend Contribute to Dip in October New Car Auto Sales, TrueCars ALG Forecasts
Oct-21-19 09:00AM TrueCar, AutoNation and DAV (Disabled American Veterans) Partner to Help Injured Veterans Get Back Behind the Wheel through DrivenToDrive Program
Oct-17-19 07:16PM TrueCar to Announce Third Quarter Financial Results on November 7
09:00AM Motor1.com and TrueCar Partner to Launch New Auto Buying Program

However, when making an investing decision, prospective investors should focus on far more than just news, especially in the ever changing technology sector. Here’s what’s happening with TrueCar, Inc..

Recent Trends From TRUE

While a single session gain, like the gain that we’re seeing from TrueCar, Inc. may lead to excitement in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally important to take a look at trends beyond a single trading day. In the case of TRUE, below are the returns that we have seen:

  • Weekly – In the last 7 days, TRUE has produced a change in value that amounts to 3.60%.
  • Past 30 Days – The performance from TrueCar, Inc. throughout the past 30 days has been 5.34%.
  • Past 3 Months – Over the past 3 months, the company has generated a return on investment that comes to -31.95%
  • Past Six Months – Throughout the previous 6 months, investors have seen a performance that equates to -50.92% from the stock.
  • This Year So Far – Since the the first trading session of this year TRUE has produced a ROI of -61.92%.
  • Full Year – Finally, in the past year, we have seen performance that comes to -69.68% out of TRUE. Over this period, the stock has sold at a high of -70.69% and a low of 14.62%.

Ratios Worth Watching

Digging into various ratios associated with a stock can provide traders an understanding of just how risky and/or rewarding a pick might be. Below are some of the key ratios to look at when digging into TRUE.

Short Ratio – The short ratio is a tool that’s used by investors to measure the level of short interest. As the short ratio heads up, it shows that more investors are expecting that the value of the stock is going to tumble. 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 industry. Nonetheless, in relation to TrueCar, Inc., the stock’s short ratio amounts to 8.97.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure the company’s abilities to cover its debts when they come due with only current assets or quick assets. In the tech space, several companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, these ratios can be damning. However, several better companies in the technology industry do have great current and quick ratios. When it comes to TRUE, the quick and current ratios total up to 3.10 and 3.10 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In this case, the book to share value ratio is 3.14.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value is 1.66.

Is Big Money Interested In TrueCar, Inc.

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:

  • Institutional Investors – As it stands now, institutional investors own 83.60% of the company. However, it is important to note that the ownership held by institutions has changed in the amount of 0.43% in the last 3 months.
  • Insider Holdings – as it relates to insiders, those close to the situation currently hold 2.50% of the company. Their ownership of the company has seen a move of -0.47% throughout the past quarter.

What Analysts Say About TrueCar, Inc.

Although it’s rarely a smart idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to consider their opinions in order to validate your own opinions when it comes to making an investment decision in the technology space. Below you’ll find the recent moves that we’ve seen from analysts as it relates to TRUE.

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Sep-12-19 Initiated Needham Hold
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

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.03. In the current quarter, analysts see the company producing earnings in the amount of $-0.03. Over the last 5 years, TRUE has generated revenue in the amount of $21.40% with earnings coming in at 4.70%. On a quarter over quarter basis, earnings have seen movement of -248.40% and revenue has seen movement of 0.20%.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 106.19M shares of TrueCar, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, TRUE has a float of 96.40M.

It’s also important to dig into the short percentage of the float. After all, if a large portion of the float is sold short, the overall opinion among investors is that the stock is going to fall hard. In regard to TRUE, the percentage of the float that is sold short comes to a total of 11.88%. Most traders believe that a concerning short percent of the float would be any percentage over 40%. In my research, I have found that any short percent of the float over 26% is usually a a play that could prove to be very risky.

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