TrueCar, Inc. | $TRUE Stock | Shares Rise On Better than Expected Earnings Numbers


TrueCar, Inc.  (NASDAQ: TRUE)


TrueCar, Inc.(TRUE), an Internet-based information, technology, and communication services company yesterday reported their fourth quarter and full year 2016 financial results. TrueCar reported adjusted fourth quarter earnings of $0.01 per share which beat analyst expectations of a loss of $0.05 per share. TrueCar reported fourth quarter revenues of $74.1 million which beat analyst estimates of $71.1 million.  


TrueCar, Inc.CEO’s Comments

“We have come a long way in the year since I joined TrueCar, and we are excited about re-accelerating our top-line growth while also improving our margins.  At this point, I am very confident that we now clearly understand and have our hands placed securely on the practical levers that we believe will enable us to continue to drive double-digit rates of unit and revenue growth for some time,” said Chip Perry, TrueCar’s President and Chief Executive Officer.

“We are pleased with the financial results in the fourth quarter of 2016,” continued Mike Guthrie, TrueCar’s Chief Financial Officer. “We have set the stage for strong growth and margin expansion over the next few years.”  Globe Newswire


TRUE Technical Analysis


TRUE opened trading yesterday at $13.42 which was up from the previous day’s trading close of $13.34. Shares closed trading yesterday at $13.25 and spiked up after market to $14.98, equivalent to a 13% increase from the closing price. Taking a look at the daily chart we can see that the last time TRUE traded above these levels we have to go back to May 19th, 2015 when it traded at $15.03.

Taking a closer look at the daily chart we can see that before the spike up TRUE had already been in an overall upward trend dating back to September 16th, 2016 when it traded at $8.39. TRUE has a float of 50.17 million shares and traded 2.95 times the normal daily trading volume on Thursday. For trading purposes, I would like to see TRUE open trading on Friday above $14.40 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

TrueCar, Inc., together with its subsidiaries, operates as an Internet-based information, technology, and communication services company. The company operates its platform on the TrueCar Website and TrueCar mobile applications. It 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. The company’s platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers.

In addition, the company provides forecast, consulting, and other services regarding determination of the residual value of an automobile at future given points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. Further, TrueCar, Inc. offers geographically specific and real-time pricing information for consumers and dealers. The company was formerly known as Inc. TrueCar, Inc. was founded in 2005 and is headquartered in Santa Monica, California.  Yahoo Finance