Cars.com (NYSE:CARS) Earns Neutral Rating from JPMorgan Chase & Co.

Cars.com (NYSE:CARS)‘s stock had its “neutral” rating reissued by research analysts at JPMorgan Chase & Co. in a report released on Friday, Marketbeat Ratings reports. They presently have a $10.00 target price on the stock, down from their prior target price of $16.00. JPMorgan Chase & Co.‘s target price would indicate a potential upside of 16.62% from the stock’s current price.

Several other analysts have also weighed in on the company. Wall Street Zen upgraded shares of Cars.com from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. UBS Group boosted their target price on Cars.com from $12.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. Barrington Research reiterated an “outperform” rating and issued a $25.00 price target on shares of Cars.com in a report on Monday, November 3rd. DA Davidson restated a “buy” rating and set a $13.50 price objective on shares of Cars.com in a report on Tuesday, November 18th. Finally, BTIG Research cut their price objective on Cars.com from $17.00 to $13.00 and set a “buy” rating on the stock in a research report on Thursday. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Cars.com currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.08.

Cars.com Stock Performance

Shares of NYSE CARS opened at $8.58 on Friday. The firm has a 50 day moving average of $11.65 and a 200 day moving average of $11.92. The firm has a market capitalization of $512.87 million, a price-to-earnings ratio of 26.80 and a beta of 1.46. Cars.com has a 12-month low of $8.29 and a 12-month high of $13.97. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.94.

Cars.com (NYSE:CARS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.12). Cars.com had a return on equity of 17.21% and a net margin of 2.77%.The firm had revenue of $183.90 million during the quarter, compared to analysts’ expectations of $183.44 million. During the same period last year, the company earned $0.49 earnings per share. The business’s revenue for the quarter was up 1.9% on a year-over-year basis. On average, research analysts anticipate that Cars.com will post 1.19 earnings per share for the current year.

Insider Activity

In related news, CFO Sonia Jain sold 11,400 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $13.45, for a total value of $153,330.00. Following the sale, the chief financial officer owned 243,642 shares in the company, valued at $3,276,984.90. This represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 stock was sold at an average price of $12.03, for a total transaction of $329,116.74. Following 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.39% of the company’s stock.

Institutional Investors Weigh In On Cars.com

Hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada raised its position in Cars.com by 122.8% during the first quarter. Royal Bank of Canada now owns 29,655 shares of the company’s stock worth $334,000 after acquiring an additional 16,347 shares during the period. AQR Capital Management LLC raised its position in shares of Cars.com by 23.4% during the 1st quarter. AQR Capital Management LLC now owns 33,860 shares of the company’s stock worth $382,000 after purchasing an additional 6,416 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Cars.com by 19.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 242,251 shares of the company’s stock worth $2,730,000 after purchasing an additional 39,561 shares during the last quarter. CWM LLC lifted its stake in Cars.com by 119.9% in the 2nd quarter. CWM LLC now owns 4,227 shares of the company’s stock valued at $50,000 after buying an additional 2,305 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd boosted its holdings in Cars.com by 108.5% in the 2nd quarter. Y Intercept Hong Kong Ltd now owns 103,158 shares of the company’s stock worth $1,222,000 after buying an additional 53,687 shares during the last quarter. Institutional investors and hedge funds own 89.15% of the company’s stock.

Trending Headlines about Cars.com

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

• Positive Sentiment: Record full-year revenue, cash generation and buybacks: Cars.com reported record 2025 revenue of $723M, generated $152M of annual cash from operations and repurchased 7.1M shares for ~$86M (retiring ~9% of shares), which supports shareholder return and balance-sheet flexibility. PR Newswire: Cars.com Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Bullish analyst with large upside: Barrington Research reaffirmed an “outperform” rating and set a $25 price target, signaling a sizable upside scenario if Cars.com executes on dealer monetization and product integration. Benzinga
• Positive Sentiment: BTIG keeps a buy stance despite trimming its target: BTIG lowered its price target from $17 to $13 but retained a “buy” call, indicating some analysts still see recovery potential above current levels. TickerReport: BTIG Research
• Neutral Sentiment: Company product roadmap / marketplace integration and AI plans: Management outlined marketplace integration and plans to advance AI-powered solutions with an expectation of dealer revenue growth in 2026 — constructive for long-term monetization but not immediate upside. Earnings Call Transcript | Slide Deck | MSN
• Neutral Sentiment: JPMorgan keeps a neutral view but trims target: JPMorgan reaffirmed a “neutral” rating and cut its price target to $10 (from $16), reflecting reduced near-term confidence even as upside remains modest against today’s price. Benzinga / Finviz
• Negative Sentiment: Q4 earnings miss and weak guidance: Cars.com reported Q4 EPS $0.44 vs. $0.56 expected and issued FY26 revenue guidance implying only ~0%–2% y/y growth (FY revenue guidance below consensus), which drove investor disappointment and downward pressure on the stock. Press Release / Slide Deck
• Negative Sentiment: Structural concerns and traffic decline: A Seeking Alpha note argues Cars.com faces declining consumer traffic, stagnant dealer growth, margin pressure and a ~$400M net debt load — a thesis that supports continued downside risk and a “Sell” view. Seeking Alpha: Cars.com — A Struggling Business
• Negative Sentiment: Multiple outlets highlight the miss: Coverage from Zacks, MarketBeat and other outlets emphasize the EPS miss and flat revenue growth, reinforcing the negative narrative among investors. Zacks | MarketBeat

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.