Cars.com (NYSE: CARS) has experienced a rise in its stock price by 1.02 compared to its previous closing price of 16.70. However, the company has seen a gain of 4.39% in its stock price over the last five trading days. MarketBeat reported 2024-02-28 that Cars.com Inc. NYSE: CARS and Carvana Co. NYSE: CVNA are two different ways to play the retail automotive market. Both companies are attempting to modernize and digitize the car buying experience.
Is It Worth Investing in Cars.com (NYSE: CARS) Right Now?
The price-to-earnings ratio for Cars.com (NYSE: CARS) is above average at 9.74x. The 36-month beta value for CARS is also noteworthy at 2.06. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 1 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for CARS is 59.86M, and at present, short sellers hold a 2.71% of that float. The average trading volume of CARS on April 24, 2024 was 384.75K shares.
CARS’s Market Performance
The stock of Cars.com (CARS) has seen a 4.39% increase in the past week, with a 0.90% rise in the past month, and a -4.47% fall in the past quarter. The volatility ratio for the week is 1.83%, and the volatility levels for the past 30 days are at 2.50% for CARS. The simple moving average for the past 20 days is 0.60% for CARS’s stock, with a -7.77% simple moving average for the past 200 days.
Analysts’ Opinion of CARS
Many brokerage firms have already submitted their reports for CARS stocks, with UBS repeating the rating for CARS by listing it as a “Neutral.” The predicted price for CARS in the upcoming period, according to UBS is $20 based on the research report published on September 15, 2023 of the previous year 2023.
B. Riley Securities, on the other hand, stated in their research note that they expect to see CARS reach a price target of $26. The rating they have provided for CARS stocks is “Buy” according to the report published on July 20th, 2023.
JP Morgan gave a rating of “Overweight” to CARS, setting the target price at $23 in the report published on June 27th of the previous year.
CARS Trading at -3.42% from the 50-Day Moving Average
After a stumble in the market that brought CARS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.14% of loss for the given period.
Volatility was left at 2.50%, however, over the last 30 days, the volatility rate increased by 1.83%, as shares sank -0.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.20% lower at present.
During the last 5 trading sessions, CARS rose by +4.15%, which changed the moving average for the period of 200-days by -18.81% in comparison to the 20-day moving average, which settled at $16.77. In addition, Cars.com saw -11.07% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CARS starting from Miller Douglas Neal, who sale 14,344 shares at the price of $18.54 back on Mar 08 ’24. After this action, Miller Douglas Neal now owns 167,252 shares of Cars.com, valued at $265,938 using the latest closing price.
Miller Douglas Neal, the Pres. and Chief Comm. Officer of Cars.com, sale 1,823 shares at $18.50 during a trade that took place back on Mar 07 ’24, which means that Miller Douglas Neal is holding 181,596 shares at $33,726 based on the most recent closing price.
Stock Fundamentals for CARS
Current profitability levels for the company are sitting at:
- 0.09 for the present operating margin
- 0.82 for the gross margin
The net margin for Cars.com stands at 0.17. The total capital return value is set at 0.06. Equity return is now at value 27.02, with 10.78 for asset returns.
Based on Cars.com (CARS), the company’s capital structure generated 0.5 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 0.98. The interest coverage ratio of the stock is 1.92.
Currently, EBITDA for the company is 151.53 million with net debt to EBITDA at 2.93. When we switch over and look at the enterprise to sales, we see a ratio of 2.26. The receivables turnover for the company is 5.5for trailing twelve months and the total asset turnover is 0.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.22.
Conclusion
In summary, Cars.com (CARS) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
