Cars.com (NYSE:CARS) Hits New 12-Month High After Earnings Beat

Shares of Cars.com Inc. (NYSE:CARS) reached a new 52-week high on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $13.81 and last traded at $13.8610, with a volume of 184,572 shares changing hands. The stock had previously closed at $13.56.

The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.54 by $0.04. The company had revenue of $181.88 million for the quarter, compared to analyst estimates of $183.05 million. Cars.com had a net margin of 4.73% and a return on equity of 18.82%. The firm’s revenue was up .2% on a year-over-year basis. During the same period in the prior year, the company earned $0.48 earnings per share.

Trending Headlines about Cars.com

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.

Analysts Set New Price Targets

CARS has been the subject of a number of analyst reports. BTIG Research upped their price objective on shares of Cars.com from $14.00 to $16.00 and gave the stock a “buy” rating in a research report on Thursday. B. Riley Financial lifted their target price on shares of Cars.com from $13.00 to $15.00 and gave the stock a “neutral” rating in a research note on Friday. Zacks Research upgraded Cars.com from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. Weiss Ratings downgraded Cars.com from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, September 29th. Finally, UBS Group lowered their price objective on Cars.com from $13.00 to $11.50 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. One equities research 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. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $15.25.

Insider Buying and Selling

In other news, Director Jr. Donald A. Mcgovern sold 8,000 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $12.25, for a total transaction of $98,000.00. Following the sale, the director owned 102,900 shares of the company’s stock, valued at approximately $1,260,525. This represents a 7.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Angelique Marks sold 57,980 shares of the stock in a transaction that occurred 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 sale, the insider owned 149,636 shares in the company, valued at approximately $1,786,653.84. This trade represents a 27.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.36% of the stock is owned by insiders.

Institutional Investors Weigh In On Cars.com

Institutional investors have recently modified their holdings of the company. Ritholtz Wealth Management purchased a new stake in Cars.com during the 3rd quarter worth about $104,000. Hennessy Advisors Inc. lifted its position in shares of Cars.com by 35.8% during the 3rd quarter. Hennessy Advisors Inc. now owns 17,917 shares of the company’s stock worth $184,000 after buying an additional 4,719 shares during the last quarter. Kendall Capital Management lifted its position in shares of Cars.com by 19.1% during the 3rd quarter. Kendall Capital Management now owns 21,500 shares of the company’s stock worth $221,000 after buying an additional 3,450 shares during the last quarter. Sterling Capital Management LLC boosted its holdings in shares of Cars.com by 2,714.5% in the 3rd quarter. Sterling Capital Management LLC now owns 25,809 shares of the company’s stock valued at $265,000 after buying an additional 24,892 shares in the last quarter. Finally, Versant Capital Management Inc boosted its stake in Cars.com by 250.1% in the third quarter. Versant Capital Management Inc now owns 5,356 shares of the company’s stock valued at $55,000 after acquiring an additional 3,826 shares in the last quarter. 89.15% of the stock is owned by hedge funds and other institutional investors.

Cars.com Trading Up 3.4%

The business has a 50-day moving average of $10.92 and a 200-day moving average of $10.59. The stock has a market capitalization of $750.22 million, a price-to-earnings ratio of 24.54 and a beta of 1.66. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.00 and a current ratio of 2.00.

About Cars.com

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.