TrueCar, Inc. (TRUE) Stock: Here’s What’s Happening

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TrueCar, Inc. (TRUE) is making a move up in the market in today’s trading session. The company, focused in the technology industry, is currently priced at $4.80 after climbing 31.51% so far in today’s session. As it relates to technology companies, there are quite a few aspects that have the potential to generate gains in the market. One of the most common is news. Here are the recent headlines surrounding TRUE:

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Nov-08-19 05:01AM Edited Transcript of TRUE earnings conference call or presentation 7-Nov-19 9:30pm GMT
Nov-07-19 04:03PM TrueCar Reports Third Quarter 2019 Financial Results
09:00AM TrueCar and AutoNation Award Paralympian Army Veteran with New Retrofitted Vehicle through DrivenToDrive Program
Nov-06-19 09:00AM Kroger and TrueCar Partner to Launch Kroger Auto Buying Program
Nov-01-19 09:00AM TrueCars ALG Forecasts New Car Average Transaction Price to Increase 2.6% Year over Year for October 2019

Nonetheless, when making a decision with regard to investing, investors should take a look at much more than just news, especially in the ever evolving technology sector. Here’s what’s happing when it comes to TrueCar, Inc..

The Performance That We’ve Seen From TRUE

Although a single session gain, like the move that we’re seeing from TrueCar, Inc. might lead to excitement in some investors, that by itself should not be the basis of a decision to, or not to, buy a company’s stock. It is always smart to dig into trends just a single trading session. In the case of TRUE, here are the movements that we have seen:

  • Past 5 Trading Sessions – Over the last 7 days, TRUE has produced a price change in the amount of 11.28%.
  • Past Month – The ROI from TrueCar, Inc. throughout the last month comes to 17.74%.
  • Quarterly – Throughout the last 3 months, the stock has generated a ROI that comes to 3.69%
  • Bi-Annually – Over the last 6 months, we’ve seen a change of -40.75% from the stock.
  • Year To Date – Since the the last trading session of last year TRUE has produced a ROI of -59.71%.
  • Annually – Lastly, over the last full year, we’ve seen movement that comes to -68.21% out of TRUE. Throughout this period, the stock has sold at a high of -55.92% and a low price of 59.47%.

Ratios That Are Notable

Looking at a few ratios having to do with a stock can provide prospective investors an understanding of just how risky and/or potentially profitable a pick may be. Below are some of the most important ratios to look at when looking at TRUE.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is going to go down. Throughout the sector, strong technology stocks tend to carry a lower short ratio. However, we also see quite a few short squeezes in the sector. Nonetheless, with regard to TrueCar, Inc., the stock’s short ratio is 8.95.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay for its debts when they mature based on quick assets or current assets. In the technology sector, several companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, these ratios can look upsetting. Nonetheless, several good picks in the technology space come with strong quick and current ratios. In terms of 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 owned by the company. In this particular case, the book to share value ratio equates to 3.14.

Cash To Share Value – The cash to share value ratio compares the total 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 1.75.

Smart Money Follows Big Money

One thing I’ve come to understand in my short time in existence is that smart money tends to follow big money investors. In other words, investors that want to keep the risk down will keep their eyes on trades made by institutional investors and insiders. With that said, is big money flowing as it relates to TRUE? Here’s the scoop:

Institutions own 83.80% of the company. Institutional interest has moved by 0.65% over the past three months. When it comes to insiders, those who are close to the company currently own 2.50% percent of TRUE shares. Institutions have seen ownership changes of an accumulative -0.49% over the last three months.

What Analysts Say About TrueCar, Inc.

Although it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their thoughts when validating your own due diligence before making investment decisions in the tech industry. Here are the most recent moves that we’ve seen from analysts when it comes 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

What have ween seen from TRUE in terms of financial results?Here’s the information:

  • Analyst Expectations – Currently, analysts have expectations that TRUE will report earnings per diluted share in the amount of -0.03, with -0.03 to be announced in the earnings announcement for the current quarter. Although this information isn’t based on earnings, because we are talking on the topic of Wall St. analysts, TrueCar, Inc. is currently rated a 3.00 on a scale from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the past half decade, TrueCar, Inc. has created a change in revenue that comes to a total of 21.40%. Earnings per diluted share through the past half decade have generated movement in the amount of 4.70%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly referred to as in today’s society, TRUE has seen a change in earnings that amounts to -248.40%. TRUE has also seen a change in terms of sales in the amount of 0.20%.

How Many Shares Of TRUE 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 100.96M 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 look at the short percentage of the float. After all, if a high percentage of the float available for trading is shorted, the overall opinion among traders is that the stock is going to lose value. As far as TRUE, the percentage of the float that is currently being sold short sits at 11.88%. In general, high short percent of the float would be considered to be anything over 40%. However, I have found that a short percent of the float over 26% is probably going to be a a play that could prove to be very risky.

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