Cars.com (NYSE:CARS) Raised to Strong-Buy at Zacks Research

Key Points

• Cars.com has been upgraded to a "Strong-Buy" rating by Zacks Research, reflecting increased investor confidence.
• Despite the upgrade, different research firms have issued mixed ratings, with some downgrading the stock from "buy" to "hold" recently.
• The company's stock is currently trading at $13.19, with an average price target of $17.30, indicating potential for growth.

Zacks Research upgraded shares of Cars.com (NYSE:CARS - Free Report) from a hold rating to a strong-buy rating in a report released on Tuesday morning,Zacks.com reports.

A number of other equities research analysts also recently issued reports on the stock. UBS Group cut their target price on shares of Cars.com from $12.00 to $11.00 and set a "neutral" rating for the company in a research report on Friday, August 8th. Wall Street Zen downgraded shares of Cars.com from a "buy" rating to a "hold" rating in a research report on Friday, August 22nd. B. Riley reiterated a "buy" rating and issued a $22.00 target price (up previously from $21.00) on shares of Cars.com in a research report on Friday, August 8th. Barrington Research reiterated an "outperform" rating and issued a $25.00 target price on shares of Cars.com in a research report on Thursday, August 21st. Finally, JPMorgan Chase & Co. upgraded shares of Cars.com from a "neutral" rating to an "overweight" rating and set a $14.00 target price for the company in a research report on Thursday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, Cars.com presently has an average rating of "Buy" and an average price target of $17.30.

Cars.com Price Performance

Shares of Cars.com stock traded up $0.04 on Tuesday, hitting $13.08. The company had a trading volume of 609,157 shares, compared to its average volume of 961,383. The company has a market cap of $803.45 million, a PE ratio of 21.09 and a beta of 1.78. Cars.com has a 52 week low of $9.56 and a 52 week high of $20.47. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.82 and a quick ratio of 1.82. The business has a 50-day simple moving average of $12.60 and a 200-day simple moving average of $12.01.

Cars.com (NYSE:CARS - Get Free Report) last issued its earnings results on Thursday, August 7th. 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 the consensus estimate of $179.43 million. Cars.com had a return on equity of 17.43% and a net margin of 5.71%.The company's quarterly revenue was down .1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.38 earnings per share. Research analysts expect that Cars.com will post 1.19 EPS for the current fiscal year.

Insider Transactions at Cars.com

In related news, insider Matthew B. Crawford sold 15,000 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $11.77, for a total value of $176,550.00. Following the transaction, the insider directly owned 98,461 shares in the company, valued at approximately $1,158,885.97. This trade represents a 13.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 2.39% of the company's stock.

Institutional Trading of Cars.com

Hedge funds and other institutional investors have recently bought and sold shares of the stock. CWM LLC grew its position in Cars.com by 119.9% in the 2nd quarter. CWM LLC now owns 4,227 shares of the company's stock worth $50,000 after purchasing an additional 2,305 shares during the last quarter. GAMMA Investing LLC grew its position 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 during the last quarter. Quarry LP grew its position 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 during the last quarter. Point72 Asset Management L.P. acquired a new stake in Cars.com in the 4th quarter worth $61,000. Finally, PNC Financial Services Group Inc. grew its position in Cars.com by 22.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 5,425 shares of the company's stock worth $61,000 after purchasing an additional 1,010 shares during the last quarter. 89.15% of the stock is currently owned by institutional investors and hedge funds.

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.