Cars.com (NYSE:CARS) Hits New 52-Week Low - Here's Why

Cars.com Inc. (NYSE:CARS) recently hit a new 52-week low during trading, with shares dropping to as low as $10.80 before settling at $11.47. The day saw a trading volume of 868,808 shares compared to the previous close of $11.27.

Wall Street Analysts Forecast Growth

In light of recent market trends, several research firms have analyzed Cars.com and made adjustments to their outlook on the stock. DA Davidson revised their price target for Cars.com from $21.00 to $14.50 while maintaining a "buy" rating. Barrington Research reiterated an "outperform" rating with a price target set at $25.00. Meanwhile, JPMorgan Chase & Co. decreased their price target from $21.00 to $17.00, advising a "neutral" stance on the stock. Overall, there are two analysts rating Cars.com as a hold and three suggesting it as a buy, leading to a consensus rating of "Moderate Buy" with a consensus price target of $20.50.

Cars.com Trading Activity

The company currently boasts a market capitalization of $732.45 million, a price-to-earnings ratio of 19.78, and a beta of 2.16. Cars.com has a debt-to-equity ratio of 0.93, with both a quick ratio and a current ratio of 1.79. The stock's moving averages show a 50-day simple moving average at $15.80, and a 200-day simple moving average at $16.89.

Institutional Investment Trends

Recent activity among institutional investors indicates shifting dynamics for Cars.com. Victory Capital Management Inc. significantly raised its position in the company by 130.9%, acquiring 46,344 shares valued at $777,000. Advisors Asset Management Inc. increased their stake by 145.2%, boasting 3,148 shares worth $53,000. Additionally, Intech Investment Management LLC bought into Cars.com with a new investment amounting to $369,000. Pacer Advisors Inc. made a substantial increase, reporting a stake rise of 62,357.6% for a total of 2,493,932 shares valued at approximately $41.8 million. Finally, Charles Schwab Investment Management Inc. also upped its investment in Cars.com by 2.2%. In total, institutional investors and hedge funds own 89.15% of the company's shares.

About Cars.com

Cars.com operates as a digital automotive marketplace that facilitates connections between local car dealers and potential car buyers in the United States. Through various digital solutions, the company strives to enhance the car buying experience for customers while aiding dealerships and automotive manufacturers in reaching consumers.

Investment Considerations

Before investing your funds in Cars.com, new developments on Wall Street suggest carefully evaluating your choices. Even though Cars.com maintains a consensus rating of "Moderate Buy" among analysts, it appears there are other stocks receiving higher recommendations that might warrant attention.

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