Yahoo Finance The President of TrueCar, Inc. (NASDAQ:TRUE), Michael Darrow, Just Bought 14% More Shares
Investors who take an interest in TrueCar, Inc. (NASDAQ:TRUE) should definitely note that the President, Michael Darrow, recently paid US$2.33 per share to buy US$233k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 14%.
View our latest analysis for TrueCar
TrueCar Insider Transactions Over The Last Year
In fact, the recent purchase by Michael Darrow was the biggest purchase of TrueCar shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$2.68. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the TrueCar insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Michael Darrow.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
TrueCar is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of TrueCar
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that TrueCar insiders own about US$8.3m worth of shares (which is 2.9% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The TrueCar Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that TrueCar insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TrueCar. Case in point: We've spotted 3 warning signs for TrueCar you should be aware of.
Of course TrueCar may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
