TrueCar (NASDAQ:TRUE) Stock Price Passes Above 50-Day Moving Average - Here's What Happened

Key Points

• TrueCar's stock price recently surpassed its 50-day moving average of $1.76, reaching a high of $1.83 during trading, despite closing at $1.61.
• Analysts have recently downgraded TrueCar's ratings, with Needham lowering its price target from $4.00 to $2.75, while Lake Street Capital decreased their target from $5.00 to $1.50.
• A significant 79.44% of TrueCar's shares are currently held by hedge funds and institutional investors, indicating strong backing from major investment entities.

TrueCar, Inc. (NASDAQ:TRUE - Get Free Report) shares passed above its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $1.76 and traded as high as $1.83. TrueCar shares last traded at $1.61, with a volume of 1,347,270 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently issued reports on TRUE. Wall Street Zen lowered shares of TrueCar from a "buy" rating to a "hold" rating in a report on Thursday, May 8th. Needham & Company LLC dropped their price objective on shares of TrueCar from $4.00 to $2.75 and set a "buy" rating for the company in a report on Tuesday, May 6th. B. Riley reaffirmed a "neutral" rating on shares of TrueCar in a research note on Wednesday, May 7th. Finally, Lake Street Capital lowered shares of TrueCar from a "buy" rating to a "hold" rating and lowered their target price for the stock from $5.00 to $1.50 in a research note on Tuesday, May 6th. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $3.19.

TrueCar Price Performance

The company has a market cap of $179.74 million, a PE ratio of -6.03 and a beta of 2.03. The company's 50 day simple moving average is $1.79 and its two-hundred day simple moving average is $1.98.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TRUE. Algert Global LLC acquired a new position in shares of TrueCar during the first quarter worth about $30,000. Kapitalo Investimentos Ltda purchased a new position in TrueCar in the second quarter worth approximately $35,000. Strs Ohio purchased a new position in TrueCar in the first quarter worth approximately $38,000. Ethic Inc. grew its holdings in TrueCar by 104.7% during the 2nd quarter. Ethic Inc. now owns 44,013 shares of the technology company's stock worth $87,000 after acquiring an additional 22,511 shares in the last quarter. Finally, ProShare Advisors LLC raised its holdings in shares of TrueCar by 49.0% in the 4th quarter. ProShare Advisors LLC now owns 24,123 shares of the technology company's stock valued at $90,000 after purchasing an additional 7,938 shares in the last quarter. Hedge funds and other institutional investors own 79.44% of the company's stock.

About TrueCar

TrueCar, Inc operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers.