Cars.com (NYSE:CARS) Shares Gap Up - Here's Why

Cars.com Inc. (NYSE:CARS - Get Free Report) gapped up prior to trading 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 changing hands.

Analyst Ratings Changes

CARS has been the subject of a number of analyst reports. JPMorgan Chase & Co. raised Cars.com from a "neutral" rating to an "overweight" rating and set a $14.00 price target for the company in a report on Thursday. UBS Group dropped their target price on Cars.com from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $18.30.

Cars.com Trading Down 1.0%

The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $816.36 million, a price-to-earnings ratio of 18.90 and a beta of 1.86. The firm has a 50-day moving average of $11.21 and a 200 day moving average of $13.03.

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

Insider Buying and Selling at Cars.com

In related news, CEO Thomas Alex Vetter acquired 27,870 shares of Cars.com stock in a transaction dated Friday, May 9th. The stock was acquired at an average cost of $10.75 per share, with a total value of $299,602.50. Following the purchase, the chief executive officer directly owned 844,897 shares in the company, valued at $9,082,642.75. The trade was a 3.41% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.12% of the stock is currently owned by corporate insiders.

Institutional Trading of Cars.com

Several hedge funds and other institutional investors have recently modified their holdings of the company. Sterling Capital Management LLC raised its holdings in Cars.com by 813.0% during the fourth quarter. Sterling Capital Management LLC now owns 2,109 shares of the company's stock valued at $37,000 after buying an additional 1,878 shares in the last quarter. Quarry LP grew its position in shares of Cars.com by 184.5% in the fourth quarter. Quarry LP now owns 3,476 shares of the company's stock valued at $60,000 after purchasing an additional 2,254 shares during the last quarter. Point72 Asset Management L.P. acquired a new stake in shares of Cars.com in the fourth quarter valued at about $61,000. GAMMA Investing LLC grew its position in shares of Cars.com by 624.9% in the first quarter. GAMMA Investing LLC now owns 4,690 shares of the company's stock valued at $53,000 after purchasing an additional 4,043 shares during the last quarter. Finally, PNC Financial Services Group Inc. grew its position in shares of Cars.com by 22.9% in the first quarter. PNC Financial Services Group Inc. now owns 5,425 shares of the company's stock valued at $61,000 after purchasing an additional 1,010 shares during the last quarter. 89.15% of the stock is currently owned by hedge funds and other institutional investors.

About Cars.com

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.