Barclays PLC, a multinational investment bank, has increased its holdings of Cars.com Inc. (NYSE:CARS) shares by 22.4% in the first quarter of 2023, according to the company’s recent filing with the Securities and Exchange Commission (SEC). The fund now owns 41,050 shares of Cars.com after purchasing an additional 7,500 shares during the period. At the end of this reporting period, Barclays PLC’s ownership stake in Cars.com amounted to approximately 0.06% of the company’s total worth, equivalent to $792,000.
Cars.com is a leading online marketplace for buying and selling new and used vehicles. It offers a platform that connects consumers with dealerships across the United States. Its services include searching for cars based on specific criteria, comparing prices and features, reading reviews from other users, and ultimately facilitating the purchase process.
In terms of financial performance, Cars.com recently released its quarterly earnings data on August 3rd, providing investors with insights into its profitability and growth prospects. For the reported quarter, the company posted earnings per share (EPS) of $1.37, exceeding analysts’ consensus estimates by $0.91 per share.
Additionally, Cars.com generated revenue amounting to $168.20 million during this quarter compared to market expectations of around $168.97 million – a slight variance that did not significantly impact its overall performance. It is worth noting that the company experienced a 3.3% increase in revenue compared to the same quarter last year when it posted $0.08 EPS.
Cars.com boasts an impressive return on equity (ROE) figure of 27.83%, indicating efficient utilization of shareholders’ investments to generate profits. Moreover, it maintains a healthy net margin of 16.90%, further highlighting its ability to effectively manage costs and expenses while still preserving profitability.
Looking ahead, sell-side analysts anticipate that Cars.com Inc. will generate earnings per share of approximately $0.44 for the current fiscal year. These predictions are based on various factors, such as industry trends, market conditions, and the company’s historical performance.
Investors and financial institutions, like Barclays PLC, continue to show confidence in Cars.com Inc., increasing their holdings as a testament to their positive outlook on the company’s future prospects. As a prominent player in the online automotive marketplace, Cars.com continues to leverage its platform’s functionality and user-friendly interface to attract buyers and sellers alike.
With its strong financial performance and consistent growth, Cars.com remains an attractive investment option for individuals seeking exposure to the automotive industry. As always, investors should diligently conduct thorough research and carefully consider all available information before making any investment decisions.
Cars.com Inc.
CARS
Strong Buy
Updated on: 25/08/2023
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Date:25 August, 2023
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Growing Confidence and Stability: Institutional Investors Adjust Holdings, Analysts Give Positive Ratings, Insiders Engage, and Stock Price Trends Upward for Cars.com
Institutional investors and hedge funds have recently made adjustments to their holdings of Cars.com. For instance, Knights of Columbus Asset Advisors LLC saw a slight increase of 0.8% in their position during the first quarter. This resulted in them owning 172,843 shares valued at $3,336,000 after acquiring an additional 1,330 shares in the last quarter. Similarly, Ritholtz Wealth Management purchased a new stake in Cars.com worth approximately $836,000 during the same period.
Globeflex Capital L P also lifted its position in Cars.com by an impressive 91.5% during the fourth quarter. They now own 116,832 shares with a value of $1,609,000 after acquiring an additional 55,822 shares. In addition, Zurcher Kantonalbank Zurich Cantonalbank increased their stake by 17.6% during the fourth quarter with the acquisition of an extra 1,468 shares.
It is worth noting that institutional investors and hedge funds currently own a substantial majority of the company’s stock at approximately 88.97%. This suggests a high level of confidence in Cars.com as an investment opportunity.
These recent moves by institutional investors and hedge funds reflect potential changes in market sentiment towards Cars.com. With multiple entities adjusting their holdings and increasing their stakes in the company, it indicates a positive outlook for its future performance.
Furthermore, several analyst reports have provided favorable ratings and price objectives for Cars.com. Craig Hallum raised their price target from $22.00 to $24.00 in early August this year while TheStreet upgraded the company from “c+” to “b” rating at the end of June. B.Riley initiated coverage on Cars.com and set a “buy” rating along with a $26.00 target price for the stock.
JPMorgan Chase & Co., known for its accurate assessments within financial markets also assumed coverage on Cars.com, giving it an “overweight” rating and a target price of $23.00. Collectively, these analysts’ reports contribute to the overall consensus rating of “Buy” for Cars.com, according to data compiled from Bloomberg. The consensus target price is set at $23.85.
In light of recent news, Director Jr. Donald A. Mcgovern divested 7,000 shares of Cars.com’s stock in early June this year. The average selling price stood at $17.82, resulting in a total value of $124,740. Following the transaction, Mcgovern now holds 68,231 shares valued at $1,215,876.42.
Additionally, insider Angelique Strong Marks sold 6,000 shares on June 6th at an average price of $18.50 per share, totaling a value of $111,000. She currently owns 96,962 shares with a value of $1,793,797.
These insider transactions indicate some activity within the company by individuals closely associated with its operations and management.
As for its stock performance on the New York Stock Exchange (NYSE), Cars.com opened at $18.89 on August 25th. The company possesses a market capitalization of approximately $1.26 billion with a P/E ratio of 11.45 and a beta of 1.98.
Cars.com has shown resilience in the face of economic uncertainties and challenges posed by the pandemic-induced downturn in the automotive industry.
With a debt-to-equity ratio of 0.91 and satisfactory liquidity ratios such as quick ratio and current ratio both standing at 1.30 each – the company exhibits stability despite prevailing volatility in financial markets.
Over the past year, Cars.com’s share prices have ranged between a low of $10.55 and a high of $22.84 – indicating significant fluctuations over time but a positive upward trend overall.
Looking at the company’s recent moving averages, the 50-day moving average price is $20.24, while the 200-day moving average price lies at $19.03.
In summary, institutional investors and hedge funds have made notable adjustments to their holdings of Cars.com, demonstrating growing confidence in its prospects. Coupled with positive analyst recommendations, these developments bode well for the company’s future performance. Furthermore, insider transactions suggest continued engagement and involvement by key individuals affiliated with Cars.com. Thus, despite market fluctuations and economic challenges, Cars.com has managed to maintain stability and exhibit an upward stock price trend over time.
Source
https://beststocks.com/barclays-plc-boosts-holdings-in-cars-com-in/
