The stock of TrueCar, Inc. (NASDAQ:TRUE) is now priced at $5.48 and the shares are 1.19 points up or 27.74% higher compared to its previous closing price of $4.29. The stock had 16.613 million contracts set over the past session. TRUE shares’ daily volume is compared to its average trading volume at 1.365 million shares. However, it has a float of 96.17 million and although its performance was 45.74% over the week, it’s one to watch. Analysts have given the TRUE stock a yearly average price target of $3.46 per share. It means the stock’s downside potential is -36.86% with the TRUE share price recently placing at $5.22 to $6.35. However, some brokerage firms have priced the stock below the average, including one that has called $3.
The shorts are climbing into the TrueCar, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the TRUE shares have risen. Short interest in the stock represents just 11.21% of its float, but the volume has raised by 629349. The volume of shorted shares rised to 10.784 million from 10.155 million shares over the last two weeks. The average intraday trading volume has been 750691 shares, which means that days to cover moved to roughly 14.365711.
In the last trading session, TrueCar, Inc. (NASDAQ:TRUE) raised by $1.72 over the week and gained $2.59 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $6.35. The stock recorded its established 52-week high on 08/07/20.
Since 04/03/20, the stock has traded to a low of $1.98 at 176.77%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.5. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, TrueCar, Inc.’s two-week RSI is 84.97. This suggests that the stock is oversold at the moment and that TRUE shares’ price movement remains not stable. The stochastic readings are equally revealing at 84.03% meaning the TRUE share price is currently in oversold territory.
The technical chart shows that the TRUE stock will likely settle at between $6.15 and $6.81 per share. However, if the stock dips below $5.02, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $4.55.
Currently, the stock is trading in the green of MACD, with a reading of 0.61. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Craig Hallum raised their recommendation for TRUE from Hold to Buy in August 07 review while maintain their target price of $4 to $10. B. Riley FBR analysts upgraded their recommendation of the stock from Neutral to Buy while keeping its target price at $5 in a flash note released to investors on June 10. Needham analysts see the stock as Hold when the analysts initiated the share price coverage on September 12.
The average rating for the TRUE equity is 2.92 and is currently gathering a bullish momentum. Of 13 analysts tracking TrueCar, Inc. polled by Reuters, 9 rated TRUE as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (2) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 41.6. TrueCar, Inc. has its P/E ratio at 1.9, which means that the stock is currently trading at a discount relative to the 5.7 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for TrueCar, Inc. (NASDAQ:TRUE) will decrease by about -99.9%, which will see them reach $62.69 million. The company’s full-year revenues are, however, expected to diminish by about -24.64%, down from $353.88 million to $266.68 million. TRUE’s expected adjusted earnings should surge almost 250% to end up at -$0.07 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 266.67% to record -$0.11/share.