Cars.com’s (CARS) “Neutral” Rating Reaffirmed at JPMorgan Chase & Co.

JPMorgan Chase & Co. reissued their neutral rating on shares of Cars.com (NYSE:CARS) in a research note released on Friday, MarketBeat Ratings reports. JPMorgan Chase & Co. currently has a $10.00 price target on the stock, down from their previous price target of $16.00.

Other analysts have also recently issued reports about the company. 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. UBS Group increased their price objective on Cars.com from $12.00 to $13.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Barrington Research restated an “outperform” rating and set a $25.00 target price on shares of Cars.com in a research note on Monday, November 3rd. Wall Street Zen raised Cars.com from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. Finally, Weiss Ratings reissued 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 four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $16.08.

Cars.com Stock Down 5.6%

Shares of Cars.com stock traded down $0.51 on Friday, reaching $8.58. 3,092,782 shares of the company were exchanged, compared to its average volume of 958,877. The stock’s 50 day moving average price is $11.65 and its 200-day moving average price is $11.92. 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 has a 1-year low of $8.29 and a 1-year high of $13.97. The company has a market cap of $512.87 million, a P/E ratio of 26.80 and a beta of 1.46.

Cars.com (NYSE:CARS) last posted its quarterly 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 firm had revenue of $183.90 million for the quarter, compared to analyst estimates of $183.44 million. During the same quarter last year, the firm earned $0.49 EPS. The company’s revenue was up 1.9% on a year-over-year basis. As a group, equities analysts forecast that Cars.com will post 1.19 EPS for the current year.

Insider Activity at Cars.com

In other Cars.com news, insider Matthew B. Crawford sold 27,358 shares of the business’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 value of $329,116.74. Following the completion of the sale, the insider owned 71,103 shares in the company, valued at approximately $855,369.09. The trade was a 27.79% decrease in their ownership of the stock. 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 firm’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 transaction of $153,330.00. Following the transaction, the chief financial officer owned 243,642 shares in the company, valued at approximately $3,276,984.90. This trade represents a 4.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.39% of the company’s stock.

Institutional Investors Weigh In On Cars.com

A number of institutional investors and hedge funds have recently made changes to their positions in CARS. Hill Path Capital LP acquired a new stake in shares of Cars.com during the second quarter worth about $23,854,000. Brown Advisory Inc. purchased a new stake in Cars.com during the 2nd quarter valued at approximately $16,456,000. Par Capital Management Inc. acquired a new stake in Cars.com during the 2nd quarter worth approximately $14,220,000. Breach Inlet Capital Management LLC purchased a new position in shares of Cars.com in the 4th quarter valued at approximately $8,899,000. Finally, JPMorgan Chase & Co. grew its stake in shares of Cars.com by 112.1% in the 4th quarter. JPMorgan Chase & Co. now owns 1,127,095 shares of the company’s stock valued at $13,751,000 after purchasing an additional 595,609 shares during the last quarter. 89.15% of the stock is owned by hedge funds and other institutional investors.

Cars.com News Summary

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.