Cars.com (NYSE:CARS) Trading Down 11.9% - Should You Sell?

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)'s stock price was down 11.9% during mid-day trading on Thursday . The stock traded as low as $11.68 and last traded at $11.56. Approximately 140,557 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 770,831 shares. The stock had previously closed at $13.13.

Wall Street Analyst Weigh In

Several research firms have weighed in on CARS. UBS Group lowered their price objective on shares of Cars.com from $13.00 to $12.00 and set a "neutral" rating on the stock in a report 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 objective on the stock in a report on Thursday, July 17th. One investment analyst has rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.30.

Cars.com Price Performance

The business's fifty day moving average is $11.78 and its 200-day moving average is $12.68. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.65 and a quick ratio of 1.65. The firm has a market cap of $730.57 million, a PE ratio of 16.94 and a beta of 1.76.

Cars.com (NYSE:CARS - Get Free Report) last issued 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). The business had revenue of $179.02 million for the quarter, compared to the consensus estimate of $179.82 million. Cars.com had a return on equity of 16.86% and a net margin of 6.32%. Cars.com's revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.43 EPS. On average, research analysts predict that Cars.com Inc. will post 1.19 earnings per share for the current fiscal year.

Insider Activity at Cars.com

In related news, CEO Thomas Alex Vetter bought 27,870 shares of the company's stock in a transaction on Friday, May 9th. The stock was acquired at an average cost of $10.75 per share, for a total transaction 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 transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 2.39% of the company's stock.

Institutional Investors Weigh In On Cars.com

A number of hedge funds have recently made changes to their positions in the business. Sterling Capital Management LLC boosted its holdings 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 buying an additional 1,878 shares in the last quarter. CWM LLC boosted its holdings in shares of Cars.com by 119.9% during the 2nd quarter. CWM LLC now owns 4,227 shares of the company's stock valued at $50,000 after buying an additional 2,305 shares in the last quarter. GAMMA Investing LLC boosted its stake in Cars.com by 624.9% in the 1st quarter. GAMMA Investing LLC now owns 4,690 shares of the company's stock worth $53,000 after purchasing an additional 4,043 shares in the last quarter. Quarry LP boosted its stake in Cars.com by 184.5% in the 4th quarter. Quarry LP now owns 3,476 shares of the company's stock worth $60,000 after purchasing an additional 2,254 shares in the last quarter. Finally, Point72 Asset Management L.P. bought a new position in Cars.com in the 4th quarter worth about $61,000. 89.15% of the stock is currently 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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