Cars.com (NYSE:CARS) Stock Price Target Raised at B. Riley Financial

Key Points

• B. Riley raised its Cars.com price target from $13 to $15 while keeping a Neutral rating, implying 7.2% upside from the prior close. Analysts’ consensus rating is Moderate Buy, with an average target of $15.25.
• Cars.com reported quarterly EPS of $0.58, beating the $0.54 estimate and rising from $0.48 a year earlier. Revenue was $181.9 million, slightly below estimates, with year-over-year growth of just 0.2%.
• Analyst views were mixed: BTIG raised its target to $16 and maintained Buy, while UBS cut its target to $11.50 and kept a Neutral rating. Shares rose 3.2% on Friday to $13.99.

Cars.com (NYSE:CARS - Get Free Report) had its price target boosted by research analysts at B. Riley Financial from $13.00 to $15.00 in a report issued on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. B. Riley Financial's price objective would indicate a potential upside of 7.21% from the company's previous close.

CARS has been the topic of a number of other reports. UBS Group cut their price target on Cars.com from $13.00 to $11.50 and set a "neutral" rating on the stock in a report on Wednesday, October 7th. BTIG Research raised their price objective on shares of Cars.com from $14.00 to $16.00 and gave the stock a "buy" rating in a research report on Thursday. Zacks Research upgraded shares of Cars.com from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 9th. Finally, Weiss Ratings downgraded shares of Cars.com from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $15.25.

Cars.com Trading Up 3.2%

Shares of NYSE:CARS traded up $0.43 during midday trading on Friday, reaching $13.99. The company's stock had a trading volume of 165,836 shares, compared to its average volume of 938,267. The firm has a market capitalization of $748.94 million, a price-to-earnings ratio of 24.16 and a beta of 1.66. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.00 and a current ratio of 2.00. The firm has a 50 day moving average price of $10.92 and a two-hundred day moving average price of $10.59. Cars.com has a fifty-two week low of $7.40 and a fifty-two week high of $13.81.

Cars.com (NYSE:CARS - Get Free Report) last announced its earnings results on Thursday, November 5th. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.54 by $0.04. Cars.com had a return on equity of 18.82% and a net margin of 4.73%. The company had revenue of $181.88 million for the quarter, compared to analyst estimates of $183.05 million. During the same quarter in the prior year, the company earned $0.48 EPS. The firm's revenue for the quarter was up .2% compared to the same quarter last year. As a group, analysts forecast that Cars.com will post 1.61 earnings per share for the current year.

Insider Transactions at Cars.com

In related news, insider Angelique Marks sold 57,980 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $11.94, for a total value of $692,281.20. Following the completion of the sale, the insider directly owned 149,636 shares of the company's stock, valued at $1,786,653.84. The trade was a 27.93% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Jr. Donald A. Mcgovern sold 8,000 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $12.25, for a total value of $98,000.00. Following the completion of the sale, the director directly owned 102,900 shares of the company's stock, valued at $1,260,525. The trade was a 7.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cars.com

A number of hedge funds have recently added to or reduced their stakes in CARS. Public Employees Retirement System of Ohio acquired a new position in shares of Cars.com during the second quarter worth approximately $26,000. Kendall Capital Management lifted its holdings in shares of Cars.com by 19.1% in the 3rd quarter. Kendall Capital Management now owns 21,500 shares of the company's stock worth $221,000 after purchasing an additional 3,450 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Cars.com by 250.1% in the 3rd quarter. Versant Capital Management Inc now owns 5,356 shares of the company's stock worth $55,000 after purchasing an additional 3,826 shares in the last quarter. First Trust Advisors LP grew its position in Cars.com by 15.0% in the 1st quarter. First Trust Advisors LP now owns 35,306 shares of the company's stock valued at $287,000 after purchasing an additional 4,592 shares during the period. Finally, Hennessy Advisors Inc. grew its position in Cars.com by 35.8% in the 3rd quarter. Hennessy Advisors Inc. now owns 17,917 shares of the company's stock valued at $184,000 after purchasing an additional 4,719 shares during the period. Institutional investors and hedge funds own 89.15% of the company's stock.

Key Cars.com News

Here are the key news stories impacting Cars.com this week:

• Positive Sentiment: Third-quarter EPS was $0.58, above the $0.54 consensus and up from $0.48 a year earlier. Net income rose 113% year over year to $16.3 million, while adjusted EBITDA reached $55.8 million and its 30.7% margin beat the company’s guidance range by 120 basis points. Read More.
• Positive Sentiment: Marketplace revenue grew 5% year over year, and Cars.com highlighted the launch of a self-service Marketplace Starter package. The company also repurchased $16 million of shares during the quarter, supporting its capital-return plan. Read More.
• Positive Sentiment: BTIG Research raised its price target to $16 from $14 and maintained a Buy rating, signaling a more optimistic analyst view. Read More.
• Neutral Sentiment: Full-year 2026 revenue guidance of $723.2 million to $737.7 million brackets the $728.7 million consensus estimate. Fourth-quarter guidance of $183.9 million to $187.6 million is also close to the $185.6 million consensus, offering no clear indication of a major change in expectations.
• Negative Sentiment: Quarterly revenue of $181.9 million missed analyst expectations of $183.05 million and increased only 0.2% year over year. The revenue shortfall and modest growth may offset some of the earnings and margin improvements. Read More.

About Cars.com

Cars.com Inc NYSE: CARS operates a digital automotive marketplace that connects consumers with automotive dealers and manufacturers. Its platform enables shoppers to research vehicles, compare listings, read reviews, obtain financing information and connect with sellers when buying new or used cars.

The company provides automotive retailers with digital marketing, advertising, inventory merchandising, website and digital retailing solutions, as well as data and analytics tools. Its portfolio includes the Cars.com marketplace and related brands and services focused on dealer reviews, vehicle financing, automotive content and customer engagement.

Cars.com primarily serves the United States automotive market, working with consumers, franchised and independent dealerships, original equipment manufacturers and other industry participants.

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