BTIG Research Lowers Cars.com (NYSE:CARS) Price Target to $13.00

Cars.com (NYSE:CARS) had its target price reduced by stock analysts at BTIG Research from $17.00 to $13.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. BTIG Research’s price target indicates a potential upside of 51.60% from the company’s current price.

Other equities analysts also recently issued research reports about the company. UBS Group upped 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. Wall Street Zen raised Cars.com from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Cars.com in a research report on Tuesday, January 27th. Barrington Research reissued an “outperform” rating and issued a $25.00 target price on shares of Cars.com in a research report on Monday, November 3rd. Finally, DA Davidson restated a “buy” rating and issued a $13.50 price target on shares of Cars.com in a research note on Tuesday, November 18th. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $16.08.

Cars.com Price Performance

NYSE:CARS opened at $8.58 on Thursday. The company has a market cap of $512.87 million, a P/E ratio of 26.80 and a beta of 1.46. The firm’s fifty day moving average price is $11.65 and its two-hundred day moving average price is $11.92. Cars.com has a one year low of $8.29 and a one year high of $13.97. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.82 and a quick ratio of 1.82.

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

Insider Activity

In other news, insider Matthew B. Crawford sold 27,358 shares of the business’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 value of $329,116.74. Following the completion of the transaction, the insider directly owned 71,103 shares in the company, valued at approximately $855,369.09. The trade was a 27.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Sonia Jain sold 11,400 shares of the stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $13.45, for a total transaction 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 position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.39% of the company’s stock.

Hedge Funds Weigh In On Cars.com

A number of institutional investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its position in Cars.com by 1.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,139,080 shares of the company’s stock valued at $38,296,000 after buying an additional 39,173 shares in the last quarter. Par Capital Management Inc. lifted its stake in shares of Cars.com by 31.0% in the 4th quarter. Par Capital Management Inc. now owns 2,697,648 shares of the company’s stock valued at $32,911,000 after acquiring an additional 639,000 shares during the last quarter. Hill Path Capital LP boosted its holdings in shares of Cars.com by 23.2% during the 3rd quarter. Hill Path Capital LP now owns 2,481,032 shares of the company’s stock valued at $30,318,000 after acquiring an additional 468,000 shares in the last quarter. Brown Advisory Inc. bought a new stake in Cars.com during the 2nd quarter worth $16,456,000. Finally, American Century Companies Inc. grew its position in Cars.com by 13.0% during the 3rd quarter. American Century Companies Inc. now owns 1,203,622 shares of the company’s stock worth $14,708,000 after acquiring an additional 138,229 shares during the last quarter. 89.15% of the stock is currently owned by institutional investors and hedge funds.

More Cars.com News

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

Cars.com Company Profile

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.