Yahoo Finance Insiders who purchased TrueCar, Inc. (NASDAQ:TRUE) earlier this year lose an additional US$49k as the stock sinks to US$3.17
Insiders who bought US$252k worth of TrueCar, Inc.'s (NASDAQ:TRUE) stock at an average buy price of US$3.93 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$203k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for TrueCar
TrueCar Insider Transactions Over The Last Year
The President Michael Darrow made the biggest insider purchase in the last 12 months. That single transaction was for US$252k worth of shares at a price of US$3.93 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.17). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Michael Darrow was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
TrueCar Insiders Are Selling The Stock
The last three months saw some TrueCar insider selling. Independent Director John Mendel sold just US$47k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.8% of TrueCar shares, worth about US$8.0m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At TrueCar Tell Us?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if TrueCar insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TrueCar. At Simply Wall St, we found 2 warning signs for TrueCar that deserve your attention before buying any shares.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
