Cars.com (NYSE:CARS) Earns “Outperform” Rating from Barrington Research

Cars.com (NYSE:CARS)‘s stock had its “outperform” rating reissued by stock analysts at Barrington Research in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $25.00 target price on the stock. Barrington Research’s target price would suggest a potential upside of 173.52% from the stock’s previous close.

Several other equities analysts have also issued reports on CARS. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $10.00 price target (down from $16.00) on shares of Cars.com in a report on Friday. UBS Group upped their target price on Cars.com from $12.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. Weiss Ratings reissued a “hold (c-)” rating on shares of Cars.com in a report on Tuesday, January 27th. Wall Street Zen upgraded Cars.com from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Finally, BTIG Research cut their price objective on shares of Cars.com from $17.00 to $13.00 and set a “buy” rating on the stock in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.08.

Cars.com Stock Down 14.9%

CARS opened at $9.14 on Friday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.94. Cars.com has a 12 month low of $8.86 and a 12 month high of $14.94. The business’s 50-day moving average price is $11.73 and its 200-day moving average price is $11.95. The company has a market cap of $546.66 million, a P/E ratio of 19.87 and a beta of 1.46.

Cars.com (NYSE:CARS) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.12). The business had revenue of $183.90 million for the quarter, compared to analysts’ expectations of $183.44 million. Cars.com had a net margin of 4.16% and a return on equity of 18.32%. The company’s revenue was up 1.9% on a year-over-year basis. During the same period last year, the business earned $0.49 earnings per share. On average, equities analysts expect that Cars.com will post 1.19 EPS for the current year.

Insider Activity at Cars.com

In related news, CFO Sonia Jain sold 11,400 shares of Cars.com stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $13.45, for a total transaction of $153,330.00. Following the completion of the transaction, the chief financial officer directly owned 243,642 shares in the company, valued at approximately $3,276,984.90. This trade represents a 4.47% 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 hyperlink. Also, insider Matthew B. Crawford sold 27,358 shares of the business’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $12.03, for a total value of $329,116.74. Following the completion of the transaction, the insider directly owned 71,103 shares of the company’s stock, valued at $855,369.09. The trade was a 27.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.39% of the company’s stock.

Hedge Funds Weigh In On Cars.com

Several large investors have recently made changes to their positions in CARS. Connor Clark & Lunn Investment Management Ltd. boosted its holdings in Cars.com by 2.0% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 41,069 shares of the company’s stock worth $487,000 after buying an additional 794 shares in the last quarter. Inspire Investing LLC raised its position in shares of Cars.com by 3.0% in the fourth quarter. Inspire Investing LLC now owns 38,273 shares of the company’s stock worth $467,000 after acquiring an additional 1,119 shares during the period. GAMMA Investing LLC boosted its stake in shares of Cars.com by 27.7% during the 3rd quarter. GAMMA Investing LLC now owns 5,898 shares of the company’s stock worth $72,000 after acquiring an additional 1,279 shares in the last quarter. iSAM Funds UK Ltd grew its position in shares of Cars.com by 12.3% during the 3rd quarter. iSAM Funds UK Ltd now owns 12,499 shares of the company’s stock valued at $153,000 after acquiring an additional 1,367 shares during the period. Finally, Vident Advisory LLC increased its stake in shares of Cars.com by 3.3% in the 3rd quarter. Vident Advisory LLC now owns 43,023 shares of the company’s stock valued at $526,000 after purchasing an additional 1,386 shares in the last quarter. 89.15% of the stock is currently owned by institutional investors and hedge funds.

Cars.com News Roundup

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

• Positive Sentiment: Recorded full-year revenue of $723M, generated $152M of operating cash flow, repurchased 7.1M shares for $86M (retiring ~9% of shares outstanding), and expanded dealer customers to ~19,544 — indicating strong cash generation and shareholder-friendly capital allocation. Cars.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management outlined a marketplace integration strategy and is advancing AI-powered solutions while expecting dealer revenue growth in 2026 — strategic initiatives that could improve monetization and product differentiation over time. Cars.com outlines marketplace integration and expects 2026 dealer revenue growth while advancing AI-powered solutions
• Neutral Sentiment: Revenue for Q4 was $183.9M, essentially in line with consensus and up 1.9% year-over-year — the top line showed modest growth but not a clear reacceleration. Cars.com (CARS) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: For additional management commentary and color on execution, see the full earnings call transcript. Cars.com Inc. (CARS) Q4 2025 Earnings Call Transcript
• Negative Sentiment: EPS missed: reported $0.44 vs. consensus $0.56, and fell from $0.49 a year ago — an earnings shortfall that pressures near-term sentiment. Cars.com (CARS) Misses Q4 Earnings Estimates
• Negative Sentiment: Forward revenue guidance came in below consensus: Q1 2026 revenue $179.0M–$180.8M vs. $183.4M expected, and FY 2026 revenue $723.2M–$737.7M vs. $735.1M consensus — plus limited EPS guidance, which increases short-term uncertainty. Cars.com: Q4 Earnings Snapshot / Press Release & Slides

Cars.com Company Profile

Cars.com operates as a leading online automotive marketplace in the United States, connecting car shoppers with new and used vehicle listings from dealerships and private sellers. The platform enables consumers to research makes and models, compare prices, read expert and user reviews, and access tools such as TrueCost to estimate ownership expenses over time. Through its website and mobile applications, Cars.com aims to simplify the car-buying process by aggregating detailed vehicle data, payment calculators, and dealership ratings into a single user-friendly experience.

On the dealer side, Cars.com provides a suite of marketing and lead-generation services designed to help automotive retailers reach potential buyers and manage their online presence.