TrueCar, Inc. (NASDAQ:TRUE) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analysts rate TrueCar as "Reduce": six brokerages cover the stock (one sell, five hold) and the average 1‑year price target is $2.65.
• TrueCar traded at $2.54 midday with a market cap of about $225.9M, a negative P/E of -11.55, a 52‑week range of $1.05–$3.83, and 50‑/200‑day moving averages of $2.52/$2.28.
• High institutional ownership: roughly 79.44% of shares are held by hedge funds and other institutions, with recent stake increases from AQR and Goldman Sachs and new positions by Jane Street and STRS Ohio.

TrueCar, Inc. (NASDAQ:TRUE - Get Free Report) has earned a consensus recommendation of "Reduce" from the six brokerages that are covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating and five have issued a hold rating on the company. The average 1 year price target among brokerages that have covered the stock in the last year is $2.65.

Several equities analysts recently issued reports on TRUE shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of TrueCar in a report on Wednesday, January 21st. BTIG Research reaffirmed a "neutral" rating on shares of TrueCar in a research note on Thursday, January 22nd.

TrueCar Stock Performance

TrueCar stock remained flat at $2.54 during mid-day trading on Friday. The business has a fifty day moving average price of $2.52 and a 200 day moving average price of $2.28. The stock has a market cap of $225.91 million, a price-to-earnings ratio of -11.55 and a beta of 2.22. TrueCar has a 52-week low of $1.05 and a 52-week high of $3.83.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. AQR Capital Management LLC lifted its stake in TrueCar by 332.9% in the 1st quarter. AQR Capital Management LLC now owns 59,791 shares of the technology company's stock valued at $94,000 after buying an additional 45,980 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of TrueCar by 4.5% in the first quarter. Goldman Sachs Group Inc. now owns 387,829 shares of the technology company's stock worth $613,000 after acquiring an additional 16,822 shares during the last quarter. Jane Street Group LLC acquired a new position in shares of TrueCar in the first quarter worth $234,000. Strs Ohio purchased a new stake in shares of TrueCar in the first quarter valued at $38,000. Finally, Geode Capital Management LLC boosted its stake in shares of TrueCar by 1.3% during the second quarter. Geode Capital Management LLC now owns 1,842,858 shares of the technology company's stock valued at $3,502,000 after acquiring an additional 24,162 shares during the last quarter. 79.44% of the stock is owned by hedge funds and other institutional investors.

About TrueCar

TrueCar, Inc operates a digital automotive marketplace designed to streamline the vehicle buying and selling process in the United States. Through its online platform, TrueCar provides prospective car buyers with transparent pricing information, real‐time market data and guaranteed savings from a network of certified dealers. The company's core offerings include pricing analytics, dealer inventory listings and a purchase–price guarantee that aims to reduce the negotiation burden typically associated with new and used vehicle transactions.

Founded in 2005 under the name Zag.com by entrepreneur Scott Painter, the company rebranded as TrueCar in 2010 and subsequently completed its initial public offering in 2014.

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