Cars.com (NYSE:CARS) Trading Down 5.5% - Time to Sell?

Key Points

• Cars.com shares fell 5.5% to about $10.82 in midday trading, with volume significantly below the stock’s average. The company has a $579.6 million market capitalization and trades below its 50-day moving average but above its 200-day average.
• Analysts maintain a generally cautious outlook, with an average rating of “Hold” and a $14.83 price target. Recent ratings include UBS’s neutral $13 target and BTIG Research’s buy rating with a $14 target.
• Cars.com met quarterly earnings expectations with $0.51 EPS, while revenue rose 0.7% year over year to $179.93 million. Two insiders recently sold shares, although institutional investors still own approximately 89.15% of the company.

Cars.com Inc. (NYSE:CARS - Get Free Report) shares fell 5.5% during mid-day trading on Tuesday . The company traded as low as $10.87 and last traded at $10.8160. Approximately 146,173 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 957,694 shares. The stock had previously closed at $11.45.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. UBS Group raised their price objective on shares of Cars.com from $12.00 to $13.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. BTIG Research reaffirmed a "buy" rating and issued a $14.00 target price on shares of Cars.com in a report on Thursday, August 6th. Weiss Ratings upgraded shares of Cars.com from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, September 14th. Finally, Zacks Research upgraded shares of Cars.com from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Cars.com presently has an average rating of "Hold" and an average price target of $14.83.

Cars.com Trading Down 5.4%

The business has a 50 day moving average of $11.87 and a 200-day moving average of $10.50. The stock has a market cap of $579.62 million, a PE ratio of 18.99 and a beta of 1.59. The company has a current ratio of 2.00, a quick ratio of 2.00 and a debt-to-equity ratio of 1.01.

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

Insider Transactions at Cars.com

In other news, Director Donald McGovern sold 8,000 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $12.25, for a total value of $98,000.00. Following the completion of the transaction, the director owned 102,900 shares of the company's stock, valued at $1,260,525. The trade was a 7.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Angelique Marks sold 57,980 shares of the company's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $11.94, for a total transaction of $692,281.20. Following the transaction, the insider directly owned 149,636 shares in the company, valued at $1,786,653.84. The trade was a 27.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 3.36% of the company's stock.

Institutional Trading of Cars.com

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Public Employees Retirement System of Ohio purchased a new position in Cars.com in the 2nd quarter valued at about $26,000. Hennessy Advisors Inc. purchased a new stake in shares of Cars.com during the second quarter worth about $144,000. Amundi purchased a new stake in shares of Cars.com during the second quarter worth about $192,000. Kendall Capital Management acquired a new position in shares of Cars.com in the second quarter worth about $197,000. Finally, First Trust Advisors LP lifted its stake 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 worth $287,000 after acquiring an additional 4,592 shares in 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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