Cars.com (NYSE:CARS) Stock Price Expected to Rise, BTIG Research Analyst Says

Key Points

• BTIG Research raised its price target on Cars.com from $13.00 to $14.00 and maintained a "buy" rating, implying about a 12.8% upside from the prior close.
• Analyst views are mixed—four Buys, three Holds and one Sell—leaving a MarketBeat consensus rating of "Hold" with a consensus target of $16.17.
• Shares jumped about 10.9% to $12.41 on heavy volume; the company recently missed EPS ($0.44 vs. $0.56 expected) while revenue was roughly in line, and it trades at a market cap of ~$721M with a P/E of 38.9.

Cars.com (NYSE:CARS - Get Free Report) had its target price increased by stock analysts at BTIG Research from $13.00 to $14.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. BTIG Research's price objective points to a potential upside of 12.81% from the company's previous close.

Several other research firms have also recently weighed in on CARS. Zacks Research upgraded Cars.com from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 15th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $10.00 price objective (down from $16.00) on shares of Cars.com in a report on Friday, February 27th. Barrington Research reissued an "outperform" rating and issued a $25.00 target price on shares of Cars.com in a research report on Friday, February 27th. DA Davidson restated a "buy" rating and set a $13.00 target price on shares of Cars.com in a research note on Monday, April 13th. Finally, Weiss Ratings lowered shares of Cars.com from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, April 1st. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Cars.com currently has a consensus rating of "Hold" and a consensus target price of $16.17.

Cars.com Stock Up 10.9%

NYSE:CARS traded up $1.22 on Thursday, reaching $12.41. 1,128,266 shares of the stock traded hands, compared to its average volume of 1,219,235. The company has a current ratio of 1.87, a quick ratio of 1.87 and a debt-to-equity ratio of 0.96. The company has a market capitalization of $721.39 million, a price-to-earnings ratio of 38.89 and a beta of 1.64. Cars.com has a 12 month low of $7.40 and a 12 month high of $13.97. The company's fifty day simple moving average is $9.20 and its 200 day simple moving average is $10.81.

Cars.com (NYSE:CARS - Get Free Report) last issued its earnings results on Thursday, February 26th. The company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.12). Cars.com had a return on equity of 17.31% and a net margin of 2.77%.The firm had revenue of $183.90 million during the quarter, compared to the consensus estimate of $183.44 million. During the same quarter in the prior year, the company posted $0.49 EPS. The company's quarterly revenue was up 1.9% on a year-over-year basis. Equities analysts predict that Cars.com will post 1.83 EPS for the current fiscal year.

Institutional Trading of Cars.com

Several large investors have recently added to or reduced their stakes in CARS. BNP Paribas Financial Markets boosted its stake in shares of Cars.com by 30.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,025 shares of the company's stock worth $83,000 after acquiring an additional 1,623 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of Cars.com by 436.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,960 shares of the company's stock worth $94,000 after buying an additional 6,475 shares in the last quarter. Virtus Advisers LLC purchased a new position in Cars.com in the third quarter worth about $100,000. State of Wyoming bought a new stake in Cars.com during the second quarter worth approximately $115,000. Finally, AXA S.A. purchased a new stake in Cars.com during the second quarter valued at approximately $126,000. 89.15% of the stock is currently owned by institutional investors.

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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