Cars.com (NYSE:CARS) Stock Price Down 11.9% on Disappointing Earnings

Key Points

• Cars.com Inc. stock dropped **11.9%** to a trading price of **$11.56**, with a significant decline in trading volume, down **82%** from its average daily volume.
• Analysts have mixed views on the stock; **UBS** lowered its price target from **$13.00 to $12.00**, while **JPMorgan** upgraded it to a target of **$14.00**, indicating a **"Moderate Buy"** consensus rating.
• CEO **Thomas Alex Vetter** purchased **27,870 shares** at an average price of **$10.75**, boosting his holdings by **3.41%**, which suggests insider confidence in the company’s future.

Cars.com Inc. (NYSE:CARS - Get Free Report) shares were down 11.9% on Thursday following a weaker than expected earnings announcement. The company traded as low as $11.68 and last traded at $11.56. Approximately 140,557 shares were traded during trading, a decline of 82% from the average daily volume of 770,831 shares. The stock had previously closed at $13.13.

The company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.04). The business had revenue of $178.74 million for the quarter, compared to analyst estimates of $179.43 million. Cars.com had a return on equity of 17.43% and a net margin of 5.71%. The firm's revenue for the quarter was down .1% on a year-over-year basis. During the same period last year, the company posted $0.38 earnings per share.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on CARS shares. JPMorgan Chase & Co. raised shares of Cars.com from a "neutral" rating to an "overweight" rating and set a $14.00 target price on the stock in a report on Thursday, July 17th. Wall Street Zen raised shares of Cars.com from a "hold" rating to a "buy" rating in a report on Saturday. B. Riley reaffirmed a "buy" rating and issued a $22.00 price objective (up previously from $21.00) on shares of Cars.com in a report on Friday. Finally, UBS Group dropped their price objective on shares of Cars.com from $12.00 to $11.00 and set a "neutral" rating on the stock in a report on Friday. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, Cars.com currently has a consensus rating of "Moderate Buy" and an average target price of $17.30.

Hedge Funds Weigh In On Cars.com

Several large investors have recently made changes to their positions in CARS. Sterling Capital Management LLC boosted its position in shares of Cars.com by 813.0% during the 4th quarter. Sterling Capital Management LLC now owns 2,109 shares of the company's stock valued at $37,000 after purchasing an additional 1,878 shares in the last quarter. CWM LLC boosted its holdings in shares of Cars.com by 119.9% in the second quarter. CWM LLC now owns 4,227 shares of the company's stock worth $50,000 after buying an additional 2,305 shares during the period. GAMMA Investing LLC boosted its holdings 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 worth $53,000 after buying an additional 4,043 shares during the period. Quarry LP boosted its holdings in shares of Cars.com by 184.5% in the fourth quarter. Quarry LP now owns 3,476 shares of the company's stock worth $60,000 after buying an additional 2,254 shares during the period. Finally, Point72 Asset Management L.P. acquired a new position in shares of Cars.com in the fourth quarter worth about $61,000. Institutional investors own 89.15% of the company's stock.

Cars.com Stock Performance

The firm's fifty day simple moving average is $11.97 and its 200 day simple moving average is $12.50. The company has a market capitalization of $805.69 million, a price-to-earnings ratio of 20.45 and a beta of 1.76. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.82 and a quick ratio of 1.82.

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.