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    HYRE   US44916T1079

HYRECAR INC.

(HYRE)
  Report
Delayed Nasdaq  -  05/27 04:00:00 pm EDT
1.090 USD   +3.81%
05/25HYRECAR : Appoints New CTO to Scale Platform Capacity to Over 100,000 Vehicles - Form 8-K
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05/25HYRECAR INC. : Change in Directors or Principal Officers, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
AQ
05/25HyreCar Appoints Greg Tatem as CTO
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SHAREHOLDER ALERT: Robbins LLP Remind Investors that HyreCar Inc. (HYRE) is Being Sued for Misleading Shareholders

10/04/2021 | 09:23am EDT

Shareholder rights law firm Robbins LLP reminds investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired HyreCar Inc. (NASDAQ: HYRE) securities between May 14, 2021 and August 10, 2021, for violations of the Securities Exchange Act of 1934. HyreCar operates a web-based marketplace that allows car and fleet owners to rent their cars to Uber, Lyft, and other gig economy service drivers.

If you suffered a loss due to HyreCar Inc.'s misconduct, click here.

HyreCar Inc. (HYRE) Materially Misstated its Insurance Reserves

According to the complaint, on May 13, 2021, HyreCar announced "Record First Quarter 2021 Financial Result," stating that insurance deposits had more than doubled during the quarter to $1.7 million, while the amount of the Company's reserve (which indicates the amount of claims incurred but not yet paid) had declined by more than 17% since year end to $1.7 million. During a conference call the same day, defendants noted that price enhancements to driver and insurance fees "should drive significant net revenue and gross margin improvements through 2021." Specifically, defendants expected "our progress toward the gross margin near-term goal of 45% to 50% we have discussed previously to accelerate."

However, these statements were materially false and misleading and failed to disclose that HyreCar had materially understated its insurance reserves, systematically failed to pay valid insurance claims prior to the Class Period, and failed to appropriately price risk its insurance products, and was experiencing elevated claims incidence as a result, among other things.

On August 10, 2021, HyreCar announced disappointing results for the quarterly period ended June 30, 2021 (Q2 2021), including net losses of $9.3 million compared to losses of $3.8 million in the same period the prior year. Further, the Company’s adjusted EBITDA loss for Q2 2021 was $7.1 million (four times higher than the $1.7 million adjusted EBITDA loss experienced in the second quarter of 2020) and its gross profit for Q2 2021 was just $0.8 million (less than one third the Company’s gross profit in the second quarter of 2020), with a gross profit margin of just 24%. Contemporaneously with the release, HyreCar filed with the SEC a Form 10-Q that disclosed the Company had incurred skyrocketing costs of revenue during the quarter primarily as a result of significantly higher insurance claims incidence – including claims before March 31, 2021 “in excess of the reserves.” On this news, HyreCar's stock plummeted nearly 50%, to close at $9.85 per share on August 11, 2021.

If you purchased shares of HyreCar Inc. (HYRE) securities between May 14, 2021 and August 10, 2021, you have until October 26, 2021, to ask the court to appoint you lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against HyreCar Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.


© Business Wire 2021
All news about HYRECAR INC.
05/25HYRECAR : Appoints New CTO to Scale Platform Capacity to Over 100,000 Vehicles - Form 8-K
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05/25HYRECAR INC. : Change in Directors or Principal Officers, Regulation FD Disclosure, Financ..
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05/25HyreCar Appoints Greg Tatem as CTO
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More news
Analyst Recommendations on HYRECAR INC.
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Financials (USD)
Sales 2022 44,3 M - -
Net income 2022 -19,9 M - -
Net Debt 2022 - - -
P/E ratio 2022 -1,18x
Yield 2022 -
Capitalization 23,8 M 23,8 M -
Capi. / Sales 2022 0,54x
Capi. / Sales 2023 0,37x
Nbr of Employees 76
Free-Float 87,6%
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Mean consensus BUY
Number of Analysts 5
Last Close Price 1,09 $
Average target price 6,25 $
Spread / Average Target 473%
EPS Revisions
Managers and Directors
Joseph Furnari Chief Executive Officer & Director
Brian Allan Senior Vice President-Strategic Partnerships
Serge de Bock Chief Financial Officer
Grace Mellis Chairman
Ken Grimes Chief Technology Officer
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