We note that the TrueCar, Inc. (NASDAQ:TRUE) Executive VP, Jeffrey Swart, recently sold US$56k worth of stock for US$2.82 per share. However we note that the sale only shrunk their holding by 9.1%.
The Last 12 Months Of Insider Transactions At TrueCar
In fact, the recent sale by Executive VP Jeffrey Swart was not their only sale of TrueCar shares this year. They previously made an even bigger sale of -US$150k worth of shares at a price of US$3.45 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.84. So it may not shed much light on insider confidence at current levels.
Jeffrey Swart ditched 80.00k shares over the year. The average price per share was US$3.23. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of TrueCar
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that TrueCar insiders own about US$6.3m worth of shares (which is 2.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At TrueCar Tell Us?
An insider sold TrueCar shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for TrueCar that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
