Cars.com (NYSE:CARS) Sets New 1-Year Low After Earnings Miss

Cars.com Inc. (NYSE:CARS) shares reached a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $8.86 and last traded at $9.2820, with a volume of 342958 shares changing hands. The stock had previously closed at $10.74.

The company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.12). The business had revenue of $183.90 million during the quarter, compared to the consensus estimate of $183.44 million. Cars.com had a return on equity of 17.21% and a net margin of 2.77%.The business’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.49 EPS.

Key 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

Wall Street Analyst Weigh In

A number of research firms have weighed in on CARS. Wall Street Zen raised shares of Cars.com from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Cars.com in a research note on Tuesday, January 27th. BTIG Research decreased their price objective on shares of Cars.com from $17.00 to $13.00 and set a “buy” rating for the company in a research report on Thursday. Barrington Research restated an “outperform” rating and issued a $25.00 target price on shares of Cars.com in a report on Friday. Finally, DA Davidson reaffirmed a “buy” rating and set a $13.50 price target on shares of Cars.com in a research report 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 MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.08.

Insider Buying and Selling at Cars.com

In related news, insider Matthew B. Crawford sold 27,358 shares of the business’s stock in a transaction on Tuesday, December 2nd. The shares were sold at an average price of $12.03, for a total transaction of $329,116.74. Following the transaction, the insider owned 71,103 shares in the company, valued at $855,369.09. The trade was a 27.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Sonia Jain sold 11,400 shares of the firm’s stock in a transaction 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 completion of the sale, the chief financial officer owned 243,642 shares of the company’s stock, valued at $3,276,984.90. The trade was a 4.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.39% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP lifted its stake in Cars.com by 1.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,139,080 shares of the company’s stock valued at $38,296,000 after acquiring an additional 39,173 shares in the last quarter. Par Capital Management Inc. lifted its position in shares of Cars.com by 31.0% during the fourth quarter. Par Capital Management Inc. now owns 2,697,648 shares of the company’s stock valued at $32,911,000 after purchasing an additional 639,000 shares in the last quarter. Hill Path Capital LP lifted its position in shares of Cars.com by 23.2% during the third quarter. Hill Path Capital LP now owns 2,481,032 shares of the company’s stock valued at $30,318,000 after purchasing an additional 468,000 shares in the last quarter. Brown Advisory Inc. purchased a new position in Cars.com during the second quarter worth about $16,456,000. Finally, American Century Companies Inc. grew its position in Cars.com by 13.0% in the 3rd quarter. American Century Companies Inc. now owns 1,203,622 shares of the company’s stock worth $14,708,000 after purchasing an additional 138,229 shares in the last quarter. Institutional investors own 89.15% of the company’s stock.

Cars.com Stock Performance

The company’s 50 day simple moving average is $11.65 and its 200 day simple moving average is $11.92. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.82 and a current ratio of 1.82. The stock has a market cap of $512.87 million, a PE ratio of 26.80 and a beta of 1.46.

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.