Cars.com (NYSE:CARS) Shares Up 12.2% – Here’s What Happened

Cars.com Inc. (NYSE:CARS) shares traded up 12.2% during trading on Wednesday. The stock traded as high as $12.96 and last traded at $12.9710. Approximately 242,064 shares changed hands during trading, a decline of 74% from the average session volume of 928,021 shares. The stock had previously closed at $11.56.

Trending Headlines about Cars.com

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

• Positive Sentiment: Third-quarter adjusted earnings were $0.58 per share, beating consensus estimates of $0.54–$0.55 and rising from $0.48 a year earlier. Net income increased 113% to $16.3 million, and adjusted EBITDA reached $55.8 million, with a 30.7% margin—120 basis points above the company’s guidance range. Cars.com Reports Third Quarter 2026 Results
• Positive Sentiment: Marketplace revenue grew 5% year over year, and Cars.com said it launched a self-service Marketplace Starter package. The company also repurchased 1.4 million shares for $16 million during the quarter, advancing toward its 2026 repurchase target. Cars.com Reports Third Quarter 2026 Results
• Positive Sentiment: BTIG Research raised its price target to $16 from $14 and maintained a buy rating, signaling improved analyst optimism. BTIG Research stock recommendations
• Positive Sentiment: B. Riley raised its target to $15 from $13, though it kept a neutral rating. B. Riley stock recommendations
• Neutral Sentiment: 2026 revenue guidance of $723.2 million–$737.7 million brackets the $728.7 million consensus estimate. Fourth-quarter guidance of $183.9 million–$187.6 million also brackets the $185.6 million estimate, suggesting expectations are broadly in line but leaving room for results either below or above forecasts. Cars.com Reports Third Quarter 2026 Results
• Negative Sentiment: Revenue was $181.9 million, below analysts’ $183.1 million estimate, and increased only 0.2% year over year. The revenue miss and muted overall growth temper the earnings and margin gains. Cars.com misses Q3 2026 revenue estimates

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on CARS shares. BTIG Research boosted their target price on Cars.com from $14.00 to $16.00 and gave the stock a “buy” rating in a research note on Thursday. Zacks Research raised shares of Cars.com from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 9th. Weiss Ratings cut shares of Cars.com from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, September 29th. B. Riley Financial boosted their target price on shares of Cars.com from $13.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, UBS Group cut their price target on shares of Cars.com from $13.00 to $11.50 and set a “neutral” rating on the stock in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $15.25.

Cars.com Price Performance

The stock has a 50 day moving average of $10.92 and a 200-day moving average of $10.59. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.00 and a current ratio of 2.00. The company has a market cap of $717.09 million, a PE ratio of 23.40 and a beta of 1.66.

Cars.com (NYSE:CARS) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.04. Cars.com had a return on equity of 18.82% and a net margin of 4.73%. The business had revenue of $181.88 million for the quarter, compared to the consensus estimate of $183.05 million. During the same quarter in the previous year, the business earned $0.48 EPS. The company’s quarterly revenue was up .2% compared to the same quarter last year. Equities analysts predict that Cars.com Inc. will post 1.61 earnings per share for the current year.

Insider Buying and Selling

In other Cars.com news, Director Jr. Donald A. Mcgovern sold 8,000 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $12.25, for a total value of $98,000.00. Following the sale, the director directly owned 102,900 shares of the company’s stock, valued at approximately $1,260,525. This represents a 7.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Angelique Marks sold 57,980 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $11.94, for a total transaction of $692,281.20. Following the sale, the insider directly owned 149,636 shares in the company, valued at $1,786,653.84. The trade was a 27.93% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 3.36% of the company’s stock.

Institutional Trading of Cars.com

Several institutional investors have recently modified their holdings of CARS. Public Employees Retirement System of Ohio purchased a new stake in shares of Cars.com in the second quarter valued at approximately $26,000. Versant Capital Management Inc raised its stake in shares of Cars.com by 250.1% in the 3rd quarter. Versant Capital Management Inc now owns 5,356 shares of the company’s stock valued at $55,000 after acquiring an additional 3,826 shares during the period. Ritholtz Wealth Management acquired a new position in Cars.com during the third quarter worth $104,000. Hennessy Advisors Inc. acquired a new position in Cars.com in the 2nd quarter valued at about $144,000. Finally, Amundi acquired a new position in shares of Cars.com in the second quarter worth $192,000. Institutional investors and hedge funds own 89.15% of the company’s stock.

Cars.com Company Profile

Cars.com Inc (NYSE: CARS) operates a digital automotive marketplace that connects consumers with automotive dealers and manufacturers. Its platform enables shoppers to research vehicles, compare listings, read reviews, obtain financing information and connect with sellers when buying new or used cars.

The company provides automotive retailers with digital marketing, advertising, inventory merchandising, website and digital retailing solutions, as well as data and analytics tools. Its portfolio includes the Cars.com marketplace and related brands and services focused on dealer reviews, vehicle financing, automotive content and customer engagement.

Cars.com primarily serves the United States automotive market, working with consumers, franchised and independent dealerships, original equipment manufacturers and other industry participants.