Cars.com (NYSE:CARS) Reaches New 1-Year High Following Better-Than-Expected Earnings

Cars.com Inc. (NYSE:CARS) hit a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $13.81 and last traded at $13.8610, with a volume of 184,572 shares. The stock had previously closed at $13.56.

The company reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.04. The business had revenue of $181.88 million for the quarter, compared to analyst estimates of $183.05 million. Cars.com had a return on equity of 18.82% and a net margin of 4.73%. The company’s revenue for the quarter was up .2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.48 earnings per share.

Cars.com News Summary

Here are the key news stories impacting Cars.com this week:

• Positive Sentiment: Third-quarter EPS was $0.58, above the $0.54 consensus and up from $0.48 a year earlier. Net income rose 113% year over year to $16.3 million, while adjusted EBITDA reached $55.8 million and its 30.7% margin beat the company’s guidance range by 120 basis points. Read More.
• Positive Sentiment: Marketplace revenue grew 5% year over year, and Cars.com highlighted the launch of a self-service Marketplace Starter package. The company also repurchased $16 million of shares during the quarter, supporting its capital-return plan. Read More.
• Positive Sentiment: BTIG Research raised its price target to $16 from $14 and maintained a Buy rating, signaling a more optimistic analyst view. Read More.
• Neutral Sentiment: Full-year 2026 revenue guidance of $723.2 million to $737.7 million brackets the $728.7 million consensus estimate. Fourth-quarter guidance of $183.9 million to $187.6 million is also close to the $185.6 million consensus, offering no clear indication of a major change in expectations.
• Negative Sentiment: Quarterly revenue of $181.9 million missed analyst expectations of $183.05 million and increased only 0.2% year over year. The revenue shortfall and modest growth may offset some of the earnings and margin improvements. Read More.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. BTIG Research increased their price target on shares of Cars.com from $14.00 to $16.00 and gave the company a “buy” rating in a report on Thursday. Zacks Research raised Cars.com from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 9th. UBS Group dropped their price objective on Cars.com from $13.00 to $11.50 and set a “neutral” rating for the company in a research note on Wednesday, October 7th. B. Riley Financial lifted their price objective on Cars.com from $13.00 to $15.00 and gave the stock a “neutral” rating in a report on Friday. Finally, Weiss Ratings downgraded Cars.com from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Cars.com has a consensus rating of “Moderate Buy” and a consensus target price of $15.25.

Insider Transactions at Cars.com

In other news, insider Angelique Marks sold 57,980 shares of the stock in a transaction dated 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. This represents a 27.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Donald McGovern sold 8,000 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $12.25, for a total transaction of $98,000.00. Following the transaction, the director directly owned 102,900 shares in the company, valued at approximately $1,260,525. This represents a 7.21% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 3.36% of the company’s stock.

Hedge Funds Weigh In On Cars.com

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Public Employees Retirement System of Ohio acquired a new position in shares of Cars.com during the second quarter worth about $26,000. Versant Capital Management Inc lifted its position in Cars.com by 250.1% during the 3rd quarter. Versant Capital Management Inc now owns 5,356 shares of the company’s stock worth $55,000 after acquiring an additional 3,826 shares in the last quarter. Ritholtz Wealth Management acquired a new position in Cars.com during the 3rd quarter worth approximately $104,000. Hennessy Advisors Inc. purchased a new position in shares of Cars.com in the second quarter valued at $144,000. Finally, Amundi purchased a new position in Cars.com in the 2nd quarter valued at about $192,000. Institutional investors and hedge funds own 89.15% of the company’s stock.

Cars.com Price Performance

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 stock has a market cap of $750.22 million, a PE ratio of 24.54 and a beta of 1.66. The business has a fifty day moving average of $10.92 and a 200 day moving average of $10.59.

Cars.com Company Profile

Cars.com Inc (NYSE: CARS) operates a digital automotive marketplace that connects consumers with automotive dealers and manufacturers. Its platform enables shoppers to research vehicles, compare listings, read reviews, obtain financing information and connect with sellers when buying new or used cars.

The company provides automotive retailers with digital marketing, advertising, inventory merchandising, website and digital retailing solutions, as well as data and analytics tools. Its portfolio includes the Cars.com marketplace and related brands and services focused on dealer reviews, vehicle financing, automotive content and customer engagement.

Cars.com primarily serves the United States automotive market, working with consumers, franchised and independent dealerships, original equipment manufacturers and other industry participants.