Reassessing The Changing Outlook For Inc. (NYSE: CARS)


    Ninety One UK Ltd. recently announced the acquisition of new stake in Inc. (NYSE:CARS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 10.76% to 6.46 million shares with purchase of 0.63 million shares. This fresh investment now brings its stake to 9.61% valued currently at $37.18 million. In addition, Greenvale Capital LLP raised its holdings by 2.26 million to 4.25 million shares. And The Baupost Group LLC has lifted its position by 10.81% or 0.29 million shares – to 3.0 million shares.

    With over 1.25 million Inc. (CARS) shares trading Thursday and a closing price of $6.11 on the day, the dollar volume was approximately $7.61 million. The shares have shown a positive weekly performance of 14.21% and its price on 07/16/20 lost nearly -0.65%. Currently, there are 66.94M common shares owned by the public and among those 66.31M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for CARS have a consensus price objective of $9.25. The analysts have set the share’s price value over the next 12 months at a high of $16.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Inc. stock is 2.60 for the next 12 months. The average price target is 29.93% above its last price level and an upside to the estimated low will see the stock lose -1.83% over that period. But an upside of 61.81% will see the stock hit the forecast high price target while mean target price for the stock is $8.00.

    Insiders at the company have transacted a total of 37 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 29 of these insider trades were purchases, accounting for 1,158,251 shares. Insider sales of the common stock occurred on 8 occasions, with total insider shares sold totaling 32,701 shares.

    The top 3 mutual fund holders in Inc. are AMG Managers Fairpointe Mid Cap F, MFS Meridian Funds – Prudent Weal, and Vanguard Total Stock Market Index. AMG Managers Fairpointe Mid Cap F owns 2.2 million shares of the company’s stock, all valued at over $12.67 million. The company bought an additional 71000.0 shares recently to bring their total holdings to about 3.28% of the shares outstanding. Vanguard Total Stock Market Index sold 24265.0 shares to bring its total holdings to over 1.94 million shares at a value of $11.17 million. Vanguard Total Stock Market Index now owns shares totaling to 2.89% of the shares outstanding.

    Shares of Inc. (NYSE: CARS) opened at $6.00, down -$0.15 from a prior closing price of $6.15. However, the script later closed the day at $6.11, down -0.65%. The company’s stock has a 5-day price change of 14.21% and 55.87% over the past three months. CARS shares are trading -50.00% year to date (YTD), with the 12-month market performance down to -70.02% lower. It has a 12-month low price of $3.25 and touched a high of $21.47 over the same period. Currently, 1.25 million shares have been traded, compared to an average intraday trading volume of 1.93 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.40%, -0.14%, and -30.55% respectively.

    Institutional ownership of Inc. (NYSE: CARS) 66.94M shares outstanding. Mutual fund holders own 51.05%, while other institutional holders and individual stakeholders account for 58.50% and 2.69% respectively.

    It has a market capitalization of $375.83M. The earnings-per-share (ttm) stands at -$18.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.09% over the week and 7.69% over the month.

    Analysts forecast that Inc. (CARS) will achieve an EPS of -$0.39 for the current quarter, $0 for the next quarter and $1.02 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.95 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.3 a year ago. Earnings per share for the fiscal year are expected to decrease by -100.60%, and 10300.00% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Inc. (CARS) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 5 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CARS, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on May 08, 2020, with the firm’s price target at. Craig Hallum coverage for the Inc. (CARS) stock in a research note released on May 07, 2020 offered a Hold rating with a price target of. B. Riley FBR was of a view on May 05, 2020 that the stock is Neutral, while BTIG Research gave the stock Buy rating on March 09, 2020, issuing a price target of $10. DA Davidson on their part issued Buy rating on March 05, 2020.


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