The stock of Cars.com (NYSE: CARS) has increased by 0.20 when compared to last closing price of 19.66. Despite this, the company has experienced a 7.59% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-19 that Cars.com recently reported Q3 2024 results, matching revenue estimates but missing earnings projections. Financial trends show slight revenue growth, improved operating income, and strong free cash flow, but gross margins have declined due to higher product and technology expenses. My near-term hold outlook hinges on dealer demand recovery, with potential upside if growth rates improve. But significant recovery may not occur until 2025.
Is It Worth Investing in Cars.com (NYSE: CARS) Right Now?
Cars.com (NYSE: CARS) has a price-to-earnings ratio of 34.07x that is above its average ratio. Additionally, the 36-month beta value for CARS is 2.12. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 2 rating it as “hold,” and 1 rating it as “sell.”
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The public float for CARS is 59.18M and currently, short sellers hold a 2.65% ratio of that float. The average trading volume of CARS on November 28, 2024 was 621.53K shares.
CARS’s Market Performance
CARS stock saw an increase of 7.59% in the past week, with a monthly gain of 21.68% and a quarterly increase of 10.43%. The volatility ratio for the week is 2.67%, and the volatility levels for the last 30 days are 2.98% for Cars.com (CARS). The simple moving average for the past 20 days is 8.03% for CARS’s stock, with a 10.06% simple moving average for the past 200 days.
Analysts’ Opinion of CARS
Many brokerage firms have already submitted their reports for CARS stocks, with JP Morgan repeating the rating for CARS by listing it as a “Neutral.” The predicted price for CARS in the upcoming period, according to JP Morgan is $19 based on the research report published on August 09, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see CARS reach a price target of $20. The rating they have provided for CARS stocks is “Neutral” according to the report published on September 15th, 2023.
B. Riley Securities gave a rating of “Buy” to CARS, setting the target price at $26 in the report published on July 20th of the previous year.
CARS Trading at 15.74% 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 -7.25% of loss for the given period.
Volatility was left at 2.98%, however, over the last 30 days, the volatility rate increased by 2.67%, as shares surge +23.13% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.06% upper at present.
During the last 5 trading sessions, CARS rose by +7.59%, which changed the moving average for the period of 200-days by +5.63% in comparison to the 20-day moving average, which settled at $18.24. In addition, Cars.com saw 3.85% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CARS starting from Jain Sonia, who proposed sale 25,029 shares at the price of $19.57 back on Nov 27 ’24. After this action, Jain Sonia now owns shares of Cars.com, valued at $489,914 using the latest closing price.
Jain Sonia, the Officer of Cars.com, proposed sale 24,971 shares at $19.70 during a trade that took place back on Nov 26 ’24, which means that Jain Sonia is holding shares at $491,915 based on the most recent closing price.
Stock Fundamentals for CARS
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.67 for the gross margin
The net margin for Cars.com stands at 0.05. The total capital return value is set at 0.05. Equity return is now at value 7.96, with 3.53 for asset returns.
Based on Cars.com (CARS), the company’s capital structure generated 0.48 points at debt to capital in total, while cash flow to debt ratio is standing at 0.36. The debt to equity ratio resting at 0.93. The interest coverage ratio of the stock is 1.49.
Currently, EBITDA for the company is 151.53 million with net debt to EBITDA at 2.38. When we switch over and look at the enterprise to sales, we see a ratio of 2.35. The receivables turnover for the company is 5.74for trailing twelve months and the total asset turnover is 0.64. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.79.
Conclusion
In conclusion, Cars.com (CARS) has seen better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
