Cars.com Inc. (NYSE:CARS) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Cars.com has a consensus analyst rating of Hold, based on coverage from eight brokerages, with an average 1-year price target of about $14.67.
• The company’s most recent quarter showed mixed results: revenue was essentially in line with estimates at $180.2 million, but adjusted EPS of $0.45 missed expectations of $0.48.
• Management is projecting flat to 2% revenue growth in 2026 and a 29% to 30% adjusted EBITDA margin, while also raising its share repurchase target to $90 million.

Shares of Cars.com Inc. (NYSE:CARS - Get Free Report) have been given an average recommendation of "Hold" by the eight brokerages that are presently covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, four have given a hold rating and three have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $14.6667.

Several research firms have recently weighed in on CARS. Weiss Ratings lowered Cars.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, April 1st. BTIG Research lifted their price objective on Cars.com from $13.00 to $14.00 and gave the company a "buy" rating in a research note on Thursday. DA Davidson reissued a "buy" rating and set a $13.00 price target on shares of Cars.com in a research report on Monday, April 13th. JPMorgan Chase & Co. boosted their price target on Cars.com from $10.00 to $11.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, B. Riley Financial lowered Cars.com from a "buy" rating to a "neutral" rating and set a $13.00 price target on the stock. in a research report on Friday.

Cars.com Stock Performance

NYSE CARS opened at $11.68 on Monday. The firm has a market capitalization of $653.14 million, a P/E ratio of 27.17 and a beta of 1.64. Cars.com has a 1-year low of $7.40 and a 1-year high of $13.97. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.87 and a quick ratio of 1.87. The business's 50-day simple moving average is $9.23 and its 200-day simple moving average is $10.83.

Cars.com (NYSE:CARS - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.03). The firm had revenue of $180.22 million during the quarter, compared to analyst estimates of $180.16 million. Cars.com had a net margin of 3.73% and a return on equity of 18.12%. The business's revenue for the quarter was up .7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.37 earnings per share. Equities analysts predict that Cars.com will post 1.83 EPS for the current year.

Key Headlines Impacting Cars.com

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

• Positive Sentiment: Cars.com reaffirmed its 2026 outlook for flat to 2% revenue growth and a 29% to 30% adjusted EBITDA margin, while also boosting its share repurchase target to $90 million, signaling confidence in cash generation and capital return. Article link
• Positive Sentiment: Q1 results showed revenue of $180.2 million, adjusted EBITDA of $51.0 million, and an adjusted EBITDA margin of 28.3%, which exceeded guidance and suggests operating performance remains healthy despite modest top-line growth. Article link
• Positive Sentiment: BTIG Research raised its price target on Cars.com to $14 from $13 and kept a Buy rating, indicating some analysts see further upside from current levels. Article link
• Positive Sentiment: JPMorgan also lifted its price target to $11 from $10, even while maintaining a Neutral rating, reflecting improved valuation expectations after the earnings release. Article link
• Neutral Sentiment: Cars.com reported adjusted results that were largely in line with revenue expectations, but the market is balancing that against the earnings miss and modest growth profile. Article link
• Negative Sentiment: The company posted Q1 EPS of $0.45, missing Wall Street estimates of $0.48, which is the main reason shares have moved lower. Article link

Hedge Funds Weigh In On Cars.com

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Villanova Investment Management Co LLC lifted its position in Cars.com by 36.7% during the 3rd quarter. Villanova Investment Management Co LLC now owns 367,070 shares of the company's stock worth $4,486,000 after acquiring an additional 98,559 shares in the last quarter. Jackson Creek Investment Advisors LLC acquired a new position in Cars.com during the 3rd quarter worth approximately $1,673,000. JPMorgan Chase & Co. lifted its position in Cars.com by 143.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 531,486 shares of the company's stock worth $6,495,000 after acquiring an additional 313,128 shares in the last quarter. Hill Path Capital LP lifted its position in Cars.com by 23.2% during the 3rd quarter. Hill Path Capital LP now owns 2,481,032 shares of the company's stock worth $30,318,000 after acquiring an additional 468,000 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new position in Cars.com during the 3rd quarter worth approximately $2,496,000. 89.15% of the stock is owned by institutional investors and hedge funds.

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.

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