Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is TrueCar Inc (TRUE) A Good Stock To Buy?

Due to the fact that TrueCar Inc (NASDAQ:TRUE) has faced declining sentiment from the smart money, it’s easy to see that there were a few hedgies that elected to cut their entire stakes last quarter. At the top of the heap, Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital dumped the largest stake of the 700 funds watched by Insider Monkey, worth an estimated $2.2 million in stock, and Chuck Royce’s Royce & Associates was right behind this move, as the fund cut about $1.7 million worth. These moves are interesting, as total hedge fund interest fell by 5 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as TrueCar Inc (NASDAQ:TRUE) but similarly valued. We will take a look at AK Steel Holding Corporation (NYSE:AKS), Ascendis Pharma A/S (NASDAQ:ASND), Tredegar Corporation (NYSE:TG), and Moneygram International Inc (NYSE:MGI). This group of stocks’ market caps are closest to TRUE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AKS 19 53452 -1
ASND 13 91218 -6
TG 7 64292 -2
MGI 13 81088 2

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $69 million in TRUE’s case. AK Steel Holding Corporation (NYSE:AKS) is the most popular stock in this table. On the other hand Tredegar Corporation (NYSE:TG) is the least popular one with only 7 bullish hedge fund positions. TrueCar Inc (NASDAQ:TRUE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AKS might be a better candidate to consider a long position.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...