Cars.com Inc. (CARS): Clutching At Straws?

The stock of Cars.com Inc. (NYSE:CARS) has been Downgraded to Neutral from Buy by DA Davidson in its latest research note that was published on August 06. Barrington Research analysts have downgraded their rating of CARS stock from Outperform to Mkt Perform in a separate flash note to investors on August 06. Analysts at BTIG Research downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to August 05.

Cars.com’s stock is covered by 9 analysts, with 1 of them rating the stock as Buy. It has been deemed to have strong buy by 1 of the analysts, 6 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only 2 analysts. 2 of them rated it as strong buy with 4 of them recommended investors to Hold on to the stock. Meanwhile, 1 analyst(s) rated it as a sell. The above data shows that CARS has an average analyst rating of 2.78.

Cars.com Inc., which has current market capitalization of above $603 Million, published its last quarter earnings on June 30, 2019. The company was able to amass $148.21 million in revenue. This figure is $-11.84 million less than what analysts had expected, which was $160.05 million. During that quarter, the company also recorded $0.3 earnings per share (EPS) which is $-0.1 below the $0.4 estimated by Thomson Reuter’s analyst, leading to a surprise factor of 24.38%.

CARS surged by $0.02 during the normal trading session on Tuesday and reaching a high of $8.93 during the day while it closed the day at $8.85. The Cars.com stock had a high trading volume of 1.85 million shares on that day, which is high compared to the average daily volume of 1.62M shares. CARS has also gained 2.43% of its value over the past 7 days. However, the stock has declined by 58.04% in the 3 months of the year. Over the past six months meanwhile, it has lost 61.67% while it has lost 58.84% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -60.22% from its 3 months high price. However, taking another look at CARS will indicate that it is trading +7.53% away from its 90-day low. Looking at the bigger picture, the Cars.com Inc. stock has dropped by -68.95% from its 52-week high while it has surged by +7.53% from its 52-week low price.

On August 09, 2019 McGovern Jr. Donald A., Director bought 10448 shares of the company. The average price for that transaction was $9.16 per share, which meant that McGovern Jr. Donald A. spent $95703.68 purchasing the stocks. The purchase was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with Director, FORBES SCOTT E purchasing 11100 shares of this stock on August 09, 2019. The average purchasing price for the stock was $8.98 per share, with the purchased stock accruing $99678. Following this transaction, the Director FORBES SCOTT E now holds 130991 shares of the company, which is worth around $1167130.

Cars.com has around 10 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $113 Billion. The Cars.com stock is bringing in revenue of over 12 months, which is roughly 148 Billion. Despite all that, Cars.com Inc. is seeing things declining very much as their y-o-y quarterly revenue dropped by -12.05%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 4.42%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 18.34%. Over the past 20 days, Cars.com’s Stochastic %K stood at 17.23% while its Stochastic %D was revealed to be 13.83%.