Cars.com (NYSE:CARS) Stock Falls 6.2% - Should You Sell?

Key Points

• Cars.com shares fell 6.2% to about $9.64 in midday trading, with volume far below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward caution: Cars.com has an average “Hold” rating and a consensus price target of $14.83, while targets range from $13 to $14.
• The company met quarterly earnings expectations at $0.51 per share, though revenue slightly missed estimates. Insiders recently sold shares, while institutional investors continue to own a substantial 89.15% stake.

Cars.com Inc. (NYSE:CARS - Get Free Report)'s share price traded down 6.2% during mid-day trading on Thursday. The company traded as low as $9.55 and last traded at $9.6350. 122,925 shares changed hands during trading, a decline of 87% from the average daily volume of 946,686 shares. The stock had previously closed at $10.27.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CARS. UBS Group lifted their price target on shares of Cars.com from $12.00 to $13.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. BTIG Research reiterated a "buy" rating and issued a $14.00 target price on shares of Cars.com in a research note on Thursday, August 6th. Weiss Ratings lowered shares of Cars.com from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday. Finally, Zacks Research raised Cars.com from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Cars.com currently has an average rating of "Hold" and an average price target of $14.83.

Cars.com Trading Down 7.5%

The stock has a market cap of $508.27 million, a P/E ratio of 16.62 and a beta of 1.59. The company has a debt-to-equity ratio of 1.01, a current ratio of 2.00 and a quick ratio of 2.00. The business's 50 day simple moving average is $11.69 and its 200 day simple moving average is $10.63.

Cars.com (NYSE:CARS - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.51 earnings per share for the quarter, meeting the consensus estimate of $0.51. The company had revenue of $179.93 million for the quarter, compared to analyst estimates of $180.53 million. Cars.com had a return on equity of 18.82% and a net margin of 4.73%.The company's revenue was up .7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.41 EPS. On average, analysts expect that Cars.com Inc. will post 1.61 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cars.com news, insider Angelique Marks sold 57,980 shares of Cars.com stock in a transaction on Monday, August 17th. The stock was sold at an average price of $11.94, for a total transaction of $692,281.20. Following the completion of the transaction, the insider directly owned 149,636 shares of the company's stock, valued at approximately $1,786,653.84. This trade represents a 27.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Donald McGovern sold 8,000 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $12.25, for a total transaction of $98,000.00. Following the completion of the sale, the director owned 102,900 shares in the company, valued at $1,260,525. This represents a 7.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.36% of the stock is currently owned by company insiders.

Institutional Trading of Cars.com

Several hedge funds have recently modified their holdings of CARS. Public Employees Retirement System of Ohio acquired a new position in shares of Cars.com in the 2nd quarter worth approximately $26,000. Hennessy Advisors Inc. acquired a new position in Cars.com in the second quarter worth $144,000. Amundi bought a new stake in shares of Cars.com during the second quarter worth $192,000. Kendall Capital Management acquired a new stake in shares of Cars.com in the second quarter valued at $197,000. Finally, First Trust Advisors LP raised its holdings in shares of Cars.com by 15.0% in the first quarter. First Trust Advisors LP now owns 35,306 shares of the company's stock valued at $287,000 after buying an additional 4,592 shares during the last quarter. Institutional investors and hedge funds own 89.15% of the company's stock.

Cars.com Company Profile

Cars.com Inc NYSE: CARS operates a digital automotive marketplace that connects consumers with automobile dealers and manufacturers. Its platform helps shoppers research vehicles, compare listings, read reviews, explore pricing and incentives, and connect with dealerships when they are ready to buy or sell a vehicle.

The company provides automotive retailers with digital marketing and technology solutions designed to help them attract and engage customers. Its offerings include vehicle listings, dealer websites, digital retailing tools, customer relationship and lead-management services, reputation management, and advertising solutions.

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