Insiders Sold TrueCar At US$2.82, Meanwhile Stock Sits Near US$1.91

TrueCar, Inc.'s (NASDAQ:TRUE) value has fallen 12% in the last week, but insiders who sold US$56k worth of stock over the last year have had less success. Given that the average selling price of US$2.82 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for TrueCar

TrueCar Insider Transactions Over The Last Year

The Executive VP, Jeffrey Swart, made the biggest insider sale in the last 12 months. That single transaction was for US$56k worth of shares at a price of US$2.82 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.91). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Jeffrey Swart.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does TrueCar Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that TrueCar insiders own about US$5.7m worth of shares (which is 3.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The TrueCar Insider Transactions Indicate?

The fact that there have been no TrueCar insider transactions recently certainly doesn't bother us. The insider transactions at TrueCar are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TrueCar. Case in point: We've spotted 1 warning sign for TrueCar you should be aware of.

But note: TrueCar may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.