Yesterday, shares of the most efficient and transparent online destination to find a car, TrueCar Inc. (TRUE) traded at $5.97 at last check-in after-hours trading, up 9.34%. TrueCar’s shares ended the day at $5.46, up 0.37%. There were 1.07 million shares traded during the trading session, which is higher than TrueCar’s average volume of 958.24K shares over the last three months. TRUE stock fluctuated between $5.265 and $5.6588 during the trading session. The TRUE stock had a P/E ratio of -0.18.
TRUE stock traded down -3.36% in the past week, recovered 2.06% in the last month, but has gained 30.00% on a cumulative basis. In the 50-day moving average of the TRUE stock, the price sits above $4.84 but below the 200-day moving average of $5.21. Furthermore, TRUE stock trades at a current RSI of 49.75. Price of TRUE stock rose on reports that new vehicle sales were projected to grow double-digits in June 2021.
What forecasts has TrueCar made?
Among the nation’s largest automotive digital marketplaces, TrueCar connects buyers and sellers with its nationwide network of Certified Dealers. In its quest to bring more of the purchasing process online, TrueCar aims to create the industry’s most personal and efficient car-buying experience. Those who visit TrueCar’s marketplace will find a variety of tools to help them discover new and used cars, plus a price rating system and market context that helps them understand what a good deal is.
The TrueCar App will provide them with the ability to connect with a local Certified Dealer who embraces the belief that trust, accountability, and fairness are the building blocks of a great car buying experience. Santa Monica, California, is TrueCar’s headquarters, while Austin, Texas, is the company’s office.
Yesterday, TrueCar forecast that its new vehicle sales will reach 1,287,536 units in June 2021, an increase of 16% year-over-year.
When adjusted for the same number of sales days, however, the forecast was down 16% compared to May 2021. Compared to the seasonally adjusted annualized rate (SAAR) of 13.0 million in June 2020, TrueCar estimates total light vehicle sales this month at 15.2 million. For new cars and light trucks sold at US retail, TrueCar expects 1,133,299 vehicles, a 11% increase from May 2020 and 17% decrease from May 2021.
Where does TrueCar go from here?
TrueCar (TRUE) has been closely watching the decline in new car inventory since January, but sales have been strong until recently because of an abundance of demand. Despite increased growth compared to last year, TrueCar expects some softer gains in June compared to prior months. Further swaying shoppers to remain on the fence this month may be the sharp decline in incentives and an increase in transaction prices, which are both causing TrueCar’s inventory to decline.
