Cars.com (NYSE:CARS) Sets New 12-Month Low Following Weak Earnings

Cars.com Inc. (NYSE:CARS) shares reached a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $8.86 and last traded at $9.2820, with a volume of 342958 shares changing hands. The stock had previously closed at $10.74.

The company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.12). Cars.com had a net margin of 4.16% and a return on equity of 18.32%. The company had revenue of $183.90 million for the quarter, compared to analyst estimates of $183.44 million. During the same period in the previous year, the business posted $0.49 EPS. The firm’s quarterly revenue was up 1.9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

CARS has been the topic of several research reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Cars.com in a report on Tuesday, January 27th. DA Davidson reiterated a “buy” rating and set a $13.50 price objective on shares of Cars.com in a research report on Tuesday, November 18th. Barrington Research reissued an “outperform” rating and set a $25.00 target price on shares of Cars.com in a research note on Monday, November 3rd. UBS Group raised their target price on Cars.com from $12.00 to $13.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 14th. Finally, Wall Street Zen raised Cars.com from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Cars.com presently has an average rating of “Moderate Buy” and a consensus price target of $17.90.

Insider Buying and Selling at Cars.com

In related news, insider Matthew B. Crawford sold 27,358 shares of Cars.com stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.03, for a total transaction of $329,116.74. Following the completion of the sale, the insider owned 71,103 shares of the company’s stock, valued at approximately $855,369.09. This trade represents a 27.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Sonia Jain sold 11,400 shares of the company’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $13.45, for a total value of $153,330.00. Following the completion of the transaction, the chief financial officer directly owned 243,642 shares in the company, valued at approximately $3,276,984.90. The trade was a 4.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.39% of the company’s stock.

Institutional Investors Weigh In On Cars.com

Several institutional investors have recently made changes to their positions in the company. Hill Path Capital LP acquired a new position in Cars.com in the second quarter worth approximately $23,854,000. Brown Advisory Inc. bought a new stake in Cars.com in the second quarter worth approximately $16,456,000. Par Capital Management Inc. acquired a new position in shares of Cars.com during the 2nd quarter worth $14,220,000. Breach Inlet Capital Management LLC bought a new position in shares of Cars.com during the 4th quarter valued at $8,899,000. Finally, JPMorgan Chase & Co. raised its holdings in shares of Cars.com by 112.1% during the 4th quarter. JPMorgan Chase & Co. now owns 1,127,095 shares of the company’s stock valued at $13,751,000 after purchasing an additional 595,609 shares in the last quarter. 89.15% of the stock is currently owned by institutional investors and hedge funds.

Cars.com Stock Performance

The firm has a market cap of $544.87 million, a price-to-earnings ratio of 19.84 and a beta of 1.46. The firm’s 50 day moving average is $11.82 and its 200-day moving average is $11.97. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.82 and a current ratio of 1.82.

About Cars.com

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.