Cars.com (NYSE:CARS) received a reiteration of its “buy” rating from analysts at DA Davidson, as detailed in a research report released on November 3, 2023. The firm has set a target price of $13.50, suggesting a potential upside of 19.1% from the stock’s current price. This endorsement reflects ongoing confidence in the company’s market performance amid recent trading activities.
Several other analysts have also weighed in on Cars.com. Barrington Research issued an “outperform” rating with a price target of $25.00, while Wall Street Zen upgraded the stock from “hold” to “buy” on November 8, 2023. Meanwhile, UBS Group raised its price objective from $11.00 to $12.00 and maintained a “neutral” rating. B. Riley reaffirmed a “buy” rating with an updated target of $22.00, up from $21.00, and JPMorgan Chase & Co. increased its target price from $15.00 to $16.00, assigning the stock an “overweight” rating.
Currently, four research analysts have rated Cars.com as a “buy,” while three have given it a “hold” rating. According to data from MarketBeat.com, the average rating for the company stands at “Moderate Buy,” with a consensus target price of $17.70.
Recent Earnings Report
On November 6, 2023, Cars.com released its quarterly earnings, reporting earnings per share (EPS) of $0.48. This figure fell short of analyst expectations, which had projected an EPS of $0.50. The company’s revenue for the quarter was $181.57 million, slightly exceeding the consensus estimate of $181.37 million. Year-over-year, Cars.com experienced a revenue increase of 1.1%, while the prior year’s EPS was $0.41. Analysts predict that the company will achieve an average EPS of 1.19 for the current fiscal year.
Investor Activity and Ownership
Recent activity among institutional investors indicates growing interest in Cars.com. CWM LLC significantly increased its stake in the company by 119.9% during the second quarter, acquiring an additional 2,305 shares for a total of 4,227 shares valued at approximately $50,000. Similarly, PNC Financial Services Group Inc. raised its holdings by 22.9% in the first quarter, now owning 5,425 shares worth $61,000.
Other notable increases include GAMMA Investing LLC, which lifted its position by 27.7%, and BNP Paribas Financial Markets, which boosted its stake by 30.0%. Additionally, Tower Research Capital LLC TRC increased its stake by a remarkable 436.0%, now holding 7,960 shares valued at around $94,000. Institutional investors and hedge funds collectively own approximately 89.15% of Cars.com stock.
Cars.com operates as a digital automotive marketplace, connecting consumers with local car dealers across the United States. The company offers a range of digital solutions tailored to enhance the car buying experience for users and dealerships alike.
