Benchmark initiated coverage on shares of TrueCar (NASDAQ:TRUE) in a research note issued to investors on Thursday morning, Marketbeat.com reports. The firm issued a buy rating and a $18.00 target price on the technology company’s stock.
“We view the bull case for TRUE as a healthy mix of execution and a longer-tailed market expansion opportunity. Even though 50% of revenue comes from a subscription model vs. a pay per list system, the subscription model is both backwards looking and has a pay per sale underpinning. This puts TrueCar as the only transaction-based model in our universe, a model which clearly appeals to dealers who effectively get exactly what they pay for. Near-term, the story is likely to be about improving registration levels from mid-single digits via enhancing the consumer experience and giving the consumer more tools and control to participate in the marketplace. Longer-term, improvements in branding, along with increased transparency in all aspects of the car buying process, should lead to an uptick in traffic, OEM spend and dealer wallet share via increased available unit volume.”,” the firm’s analyst commented.
Several other equities analysts have also recently commented on the stock. Zacks Investment Research cut shares of TrueCar from a hold rating to a strong sell rating in a research note on Saturday, January 20th. Stephens set a $18.00 price objective on shares of TrueCar and gave the company a buy rating in a research note on Friday, February 16th. B. Riley reaffirmed a buy rating and set a $18.00 price objective on shares of TrueCar in a research note on Wednesday, January 24th. ValuEngine cut shares of TrueCar from a sell rating to a strong sell rating in a research note on Thursday, March 1st. Finally, JPMorgan Chase & Co. cut shares of TrueCar from a neutral rating to an underweight rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and seven have assigned a buy rating to the stock. TrueCar has a consensus rating of Hold and an average price target of $17.60.
TrueCar (NASDAQ:TRUE) last posted its earnings results on Thursday, February 15th. The technology company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.01 by $0.04. The firm had revenue of $83.13 million during the quarter, compared to the consensus estimate of $81.72 million. TrueCar had a negative net margin of 10.16% and a negative return on equity of 8.70%. The company’s revenue was up 12.2% on a year-over-year basis. During the same quarter last year, the company earned ($0.01) earnings per share. research analysts forecast that TrueCar will post -0.25 EPS for the current fiscal year.
In other TrueCar news, SVP John Pierantoni sold 2,494 shares of TrueCar stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $11.29, for a total transaction of $28,157.26. Following the completion of the sale, the senior vice president now directly owns 57,513 shares in the company, valued at $649,321.77. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In the last ninety days, insiders have sold 5,227 shares of company stock valued at $59,857. 15.50% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the business. Senvest Management LLC lifted its position in TrueCar by 4.6% during the third quarter. Senvest Management LLC now owns 3,975,385 shares of the technology company’s stock valued at $62,771,000 after purchasing an additional 174,103 shares during the last quarter. Engineers Gate Manager LP lifted its position in TrueCar by 62.0% during the third quarter. Engineers Gate Manager LP now owns 117,408 shares of the technology company’s stock valued at $1,854,000 after purchasing an additional 44,916 shares during the last quarter. Schwab Charles Investment Management Inc. lifted its position in TrueCar by 15.3% during the third quarter. Schwab Charles Investment Management Inc. now owns 333,148 shares of the technology company’s stock valued at $5,261,000 after purchasing an additional 44,314 shares during the last quarter. Ontario Teachers Pension Plan Board lifted its position in TrueCar by 63.6% during the fourth quarter. Ontario Teachers Pension Plan Board now owns 4,500,000 shares of the technology company’s stock valued at $50,400,000 after purchasing an additional 1,750,000 shares during the last quarter. Finally, Crestline Management LP bought a new stake in TrueCar during the third quarter valued at approximately $3,211,000. Institutional investors and hedge funds own 89.02% of the company’s stock.
TrueCar, Inc, together with its subsidiaries, 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. The company also customizes and operates its platform for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises.
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