Cars.com (NYSE:CARS) Trading 5.7% Higher – Should You Buy?

Cars.com Inc. (NYSE:CARS) shot up 5.7% during trading on Monday . The company traded as high as $8.76 and last traded at $8.7750. 136,281 shares changed hands during trading, a decline of 90% from the average session volume of 1,315,520 shares. The stock had previously closed at $8.30.

Analyst Ratings Changes

Several research analysts have recently weighed in on CARS shares. Zacks Research lowered shares of Cars.com from a “hold” rating to a “strong sell” rating in a report on Monday, March 9th. UBS Group upped their price target on shares of Cars.com from $12.00 to $13.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. BTIG Research cut their price target on shares of Cars.com from $17.00 to $13.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $10.00 price target (down from $16.00) on shares of Cars.com in a report on Friday, February 27th. Finally, Barrington Research reissued an “outperform” rating and set a $25.00 price objective on shares of Cars.com in a research note on Friday, February 27th. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $16.08.

Cars.com Stock Up 6.5%

The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.96. The firm has a market capitalization of $518.38 million, a price-to-earnings ratio of 27.67 and a beta of 1.46. The firm has a 50 day moving average price of $9.54 and a two-hundred day moving average price of $11.03.

Cars.com (NYSE:CARS) last posted its earnings results on Thursday, February 26th. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.12). Cars.com had a return on equity of 17.31% and a net margin of 2.77%.The business had revenue of $183.90 million for the quarter, compared to analyst estimates of $183.44 million. During the same period last year, the company posted $0.49 EPS. The firm’s revenue for the quarter was up 1.9% compared to the same quarter last year. On average, equities analysts expect that Cars.com Inc. will post 1.19 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Cars.com

Hedge funds have recently made changes to their positions in the business. Villanova Investment Management Co LLC boosted its position in Cars.com by 10.5% during the 4th quarter. Villanova Investment Management Co LLC now owns 405,566 shares of the company’s stock worth $4,948,000 after purchasing an additional 38,496 shares during the period. Invesco Ltd. raised its position in Cars.com by 11.4% in the fourth quarter. Invesco Ltd. now owns 252,690 shares of the company’s stock valued at $3,083,000 after purchasing an additional 25,760 shares during the period. Caitlin John LLC purchased a new position in Cars.com in the fourth quarter valued at about $168,000. Vident Advisory LLC lifted its stake in shares of Cars.com by 10.0% during the fourth quarter. Vident Advisory LLC now owns 47,321 shares of the company’s stock worth $577,000 after purchasing an additional 4,298 shares in the last quarter. Finally, State of Tennessee Department of Treasury boosted its position in shares of Cars.com by 5.3% in the fourth quarter. State of Tennessee Department of Treasury now owns 36,904 shares of the company’s stock worth $419,000 after buying an additional 1,859 shares during the period. Hedge funds and other institutional investors own 89.15% of the company’s stock.

Cars.com Company Profile

Cars.com operates as a leading online automotive marketplace in the United States, connecting car shoppers with new and used vehicle listings from dealerships and private sellers. The platform enables consumers to research makes and models, compare prices, read expert and user reviews, and access tools such as TrueCost to estimate ownership expenses over time. Through its website and mobile applications, Cars.com aims to simplify the car-buying process by aggregating detailed vehicle data, payment calculators, and dealership ratings into a single user-friendly experience.

On the dealer side, Cars.com provides a suite of marketing and lead-generation services designed to help automotive retailers reach potential buyers and manage their online presence.