Cars.com (NYSE:CARS) Shares Gap Up - Still a Buy?

Shares of Cars.com Inc. (NYSE:CARS - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $12.33, but opened at $13.42. Cars.com shares last traded at $12.92, with a volume of 324,545 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts recently commented on CARS shares. UBS Group cut their target price on shares of Cars.com from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. JPMorgan Chase & Co. upgraded shares of Cars.com from a "neutral" rating to an "overweight" rating and set a $14.00 price target on the stock in a report on Thursday. One research analyst has rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, Cars.com has an average rating of "Moderate Buy" and an average price target of $18.30.

Cars.com Stock Performance

The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.65 and a current ratio of 1.65. The firm's 50-day moving average price is $11.11 and its two-hundred day moving average price is $13.12. The firm has a market capitalization of $816.68 million, a price-to-earnings ratio of 18.90 and a beta of 1.86.

Cars.com (NYSE:CARS - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported $0.37 earnings per share for the quarter, missing analysts' consensus estimates of $0.39 by ($0.02). Cars.com had a return on equity of 16.86% and a net margin of 6.32%. The company had revenue of $179.02 million during the quarter, compared to the consensus estimate of $179.82 million. During the same period in the prior year, the firm posted $0.43 earnings per share. The company's revenue was down .7% on a year-over-year basis. Sell-side analysts predict that Cars.com Inc. will post 1.19 earnings per share for the current year.

Insider Buying and Selling at Cars.com

In other Cars.com news, CEO Thomas Alex Vetter acquired 27,870 shares of the business's stock in a transaction dated Friday, May 9th. The shares were acquired at an average price of $10.75 per share, with a total value of $299,602.50. Following the completion of the transaction, the chief executive officer directly owned 844,897 shares in the company, valued at $9,082,642.75. This trade represents a 3.41% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.39% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cars.com

Several large investors have recently modified their holdings of CARS. Boston Partners increased its position in Cars.com by 26.0% during the fourth quarter. Boston Partners now owns 3,178,426 shares of the company's stock worth $55,021,000 after acquiring an additional 655,518 shares during the period. SG Capital Management LLC bought a new position in Cars.com during the fourth quarter worth about $10,908,000. Arrowstreet Capital Limited Partnership increased its position in Cars.com by 609.2% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 442,889 shares of the company's stock worth $7,675,000 after acquiring an additional 380,439 shares during the period. Peregrine Capital Management LLC bought a new position in Cars.com during the first quarter worth about $3,273,000. Finally, Trexquant Investment LP increased its position in Cars.com by 184.3% during the first quarter. Trexquant Investment LP now owns 405,947 shares of the company's stock worth $4,575,000 after acquiring an additional 263,148 shares during the period. 89.15% of the stock is owned by institutional investors.

Cars.com Company Profile

Cars.com Inc, through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers.

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