Santa Monica, CA – TrueCar, Inc. (NASDAQ:TRUE), a leader in the digital automotive marketplace, has disclosed a transaction by one of its top executives. Jeff Swart, the company's Executive Vice President, General Counsel, and Secretary, has sold 20,000 shares of the company's common stock.
The transaction, which took place on August 21, 2024, involved shares sold at a weighted average price of $2.8152, totaling over $56,000. The sales were executed in multiple transactions at prices ranging from $2.77 to $2.86 per share. Following the sale, Mr. Swart's holdings in TrueCar have decreased, but he still retains 390,600 shares of the company's common stock.
TrueCar has not provided any specific reason for this transaction, and it remains part of the regular financial activities that senior executives engage in. The details of the sale, including the exact number of shares sold at each price point within the range, have been made available in accordance with regulatory requirements and upon request.
Investors often monitor insider transactions as they provide insights into executives’ perspectives on the company's financial health and future prospects. TrueCar's stock performance and the decisions of its insiders are closely watched by the market, considering the company's position within the competitive technology and automotive sectors.
The transaction was duly reported in accordance with SEC regulations and is now a matter of public record. Jeff Swart, serving as EVP, General Counsel & Secretary, plays a significant role in the company's legal and administrative operations, and his transactions in the company's stock are routinely disclosed to maintain transparency with investors and regulators.
In other recent news, TrueCar, Inc. has reported a 6.4% year-over-year revenue increase to $41.8 million in the second quarter of 2024, along with a significant improvement in adjusted EBITDA profitability. This growth occurred despite a $750,000 revenue loss caused by a malware attack. The company continues to maintain a robust balance sheet with no debt and substantial cash reserves.
TrueCar also announced the promotion of Jill Angel to Chief Operating Officer (COO), a move seen as strategic during a period of growth and innovation for the company. BTIG recently upgraded TrueCar's stock from Neutral to Buy, citing operational de-risking and a potential market turnaround.
The company has launched the TrueCar+ pilot program, which already offers over 3,000 vehicles for complete online purchase. Analysts from BTIG anticipate a rise in OEM incentives revenue in the latter half of the year. These are recent developments in TrueCar's strategic plans and activities.
InvestingPro Insights
In light of the recent insider transaction at TrueCar, Inc., investors may find additional context from InvestingPro metrics and tips valuable. With a market capitalization of approximately $259.49 million, TrueCar exhibits a negative P/E ratio of -9, reflecting market sentiment about its future earnings potential. Specifically, the adjusted P/E ratio for the last twelve months as of Q2 2024 stands at -15.96, underlining the challenges the company faces in achieving profitability.
An impressive gross profit margin of 89.35% suggests that TrueCar is efficient in its core operations. However, the company's operating income margin of -12.55% indicates that other costs are impacting overall profitability. Additionally, the stock price has experienced significant volatility, with a 25.27% decline over the last month, which could be attributed to investor concerns or broader market trends.
InvestingPro Tips highlight that TrueCar holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations, providing the company with financial flexibility. Nevertheless, analysts do not anticipate the company will be profitable this year, and the stock has not been immune to fluctuations, as evidenced by its recent performance. It's also noteworthy that TrueCar does not pay a dividend, which could influence investment decisions for those seeking income-generating assets.
For investors seeking more detailed analysis, there are additional InvestingPro Tips available on TrueCar's profile at InvestingPro. These tips offer a deeper dive into the company's financial health and market position, which can be essential for making informed investment decisions.
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