Cars.com (NYSE:CARS) Reaches New 1-Year Low Following Weak Earnings

Cars.com Inc. (NYSE:CARS)’s stock price reached a new 52-week low during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $8.86 and last traded at $9.2820, with a volume of 342958 shares. The stock had previously closed at $10.74.

The company reported $0.44 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.12). The business had revenue of $183.90 million during the quarter, compared to analyst estimates 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 quarter in the prior year, the company posted $0.49 earnings per share.

Key Headlines Impacting Cars.com

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

• Positive Sentiment: Record full-year revenue and cash flow — Cars.com reported record 2025 revenue of $723M, grew its dealer customer base to ~19,544, and generated $152M of annual net cash from operations; management also repurchased 7.1M shares for $86M (retiring ~9% of shares). Cars.com Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Top-line roughly in line for Q4 — Revenue of $183.9M was essentially flat to expectations (consensus ~$183.4M) and up 1.9% year-over-year, showing modest demand stability in the quarter. Cars.com (CARS) Reports Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Analyst stance remains constructive — consensus analyst rating cited as “Moderate Buy,” which could support longer-term interest if execution continues. Cars.com Inc. Given Consensus Rating of “Moderate Buy”
• Negative Sentiment: EPS miss — Cars.com reported Q4 adjusted EPS of $0.44 vs. the consensus ~$0.56 and vs. $0.49 a year ago; the profit shortfall is the primary near-term negative catalyst. Cars.com (CARS) Misses Q4 Earnings Estimates
• Negative Sentiment: Guidance and disclosure gaps increase uncertainty — Management set Q1 revenue guidance below consensus ($179.0M–$180.8M vs. ~$183.4M) and issued FY revenue guidance with a lower bound close to prior-year revenue; EPS guidance was not provided in the company update, adding to near-term investor caution. Cars.com Reports Fourth Quarter and Full Year 2025 Results

Wall Street Analyst Weigh In

Several brokerages recently issued reports on CARS. UBS Group boosted their price objective on shares of Cars.com from $12.00 to $13.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Wall Street Zen upgraded shares of Cars.com from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Barrington Research reissued an “outperform” rating and issued a $25.00 price target on shares of Cars.com in a research note on Monday, November 3rd. DA Davidson reaffirmed a “buy” rating and set a $13.50 price objective on shares of Cars.com in a research report on Tuesday, November 18th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Cars.com in a report on Tuesday, January 27th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.90.

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 shares were sold at an average price of $13.45, for a total value of $153,330.00. Following the completion of the transaction, the chief financial officer owned 243,642 shares in the company, valued at approximately $3,276,984.90. The trade was a 4.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Matthew B. Crawford sold 27,358 shares of the firm’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 transaction 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. This represents a 27.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.39% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Connor Clark & Lunn Investment Management Ltd. grew its stake in Cars.com by 2.0% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 41,069 shares of the company’s stock worth $487,000 after purchasing an additional 794 shares in the last quarter. Inspire Investing LLC boosted its stake in shares of Cars.com by 3.0% in the 4th quarter. Inspire Investing LLC now owns 38,273 shares of the company’s stock valued at $467,000 after buying an additional 1,119 shares during the period. GAMMA Investing LLC grew its position in shares of Cars.com by 27.7% during the third quarter. GAMMA Investing LLC now owns 5,898 shares of the company’s stock worth $72,000 after buying an additional 1,279 shares in the last quarter. iSAM Funds UK Ltd increased its stake in shares of Cars.com by 12.3% during the third quarter. iSAM Funds UK Ltd now owns 12,499 shares of the company’s stock worth $153,000 after buying an additional 1,367 shares during the period. Finally, Vident Advisory LLC raised its holdings in Cars.com by 3.3% in the third quarter. Vident Advisory LLC now owns 43,023 shares of the company’s stock valued at $526,000 after acquiring an additional 1,386 shares in the last quarter. 89.15% of the stock is currently owned by hedge funds and other institutional investors.

Cars.com Trading Down 14.9%

The company’s fifty day moving average is $11.73 and its two-hundred day moving average is $11.95. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.94. The stock has a market cap of $546.66 million, a price-to-earnings ratio of 19.87 and a beta of 1.46.

About Cars.com

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.