Cars.com (CARS) Shares Decline Despite Market Challenges

The stock of Cars.com (NYSE: CARS) has decreased by -3.76 when compared to last closing price of 12.22. Despite this, the company has experienced a 3.16% gain in its stock price over the last five trading sessions. zacks.com reported 2025-03-18 that AVNS, CARS and CABO have been added to the Zacks Rank #5 (Strong Sell) List on March 18, 2025.

Is It Worth Investing in Cars.com (NYSE: CARS) Right Now?

Cars.com (NYSE: CARS) has a price-to-earnings ratio of 16.45x that is above its average ratio. Additionally, the 36-month beta value for CARS is 1.91. 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.”

The public float for CARS is 58.40M and currently, short sellers hold a 4.11% ratio of that float. The average trading volume of CARS on March 28, 2025 was 687.65K shares.

CARS’s Market Performance

CARS’s stock has seen a 3.16% increase for the week, with a -23.14% drop in the past month and a -32.65% fall in the past quarter. The volatility ratio for the week is 3.72%, and the volatility levels for the past 30 days are at 6.27% for Cars.com The simple moving average for the last 20 days is -0.89% for CARS stock, with a simple moving average of -31.87% for the last 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 previous 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 -21.93% 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 -44.63% of loss for the given period.

Volatility was left at 6.27%, however, over the last 30 days, the volatility rate increased by 3.72%, as shares sank -2.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -30.58% lower at present.

During the last 5 trading sessions, CARS rose by +3.16%, which changed the moving average for the period of 200-days by -42.24% in comparison to the 20-day moving average, which settled at $11.87. In addition, Cars.com saw -32.14% 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 Greenthal Jill A, who sale 10,990 shares at the price of $19.85 back on Dec 02 ’24. After this action, Greenthal Jill A now owns 90,973 shares of Cars.com, valued at $218,152 using the latest closing price.

Greenthal Jill A, the Director of Cars.com, proposed sale 10,990 shares at $19.80 during a trade that took place back on Dec 02 ’24, which means that Greenthal Jill A is holding shares at $217,603 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 0.07. The total capital return value is set at 0.05. Equity return is now at value 9.60, with 4.22 for asset returns.

Based on Cars.com (CARS), the company’s capital structure generated 0.47 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.89. The interest coverage ratio of the stock is 1.66.

Currently, EBITDA for the company is 136.85 million with net debt to EBITDA at 2.32. When we switch over and look at the enterprise to sales, we see a ratio of 1.61. The receivables turnover for the company is 5.38for trailing twelve months and the total asset turnover is 0.65. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.81.

Conclusion

In conclusion, Cars.com (CARS) has seen bad 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’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.

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