Cars.com Inc. (NYSE:CARS) director Bryan Wiener has recently sold a total of 10,000 shares of company stock, netting a total of $205,100. The sales took place on June 5, with the prices of the shares ranging from $20.38 to $20.65. This transaction was disclosed in a legal filing with the Securities and Exchange Commission (SEC).
The sale represents a significant transaction for Wiener, who, following this sale, still owns 62,913 shares of Cars.com common stock. The shares sold by Wiener were part of a larger set of transactions that also included the acquisition of restricted stock units (RSUs). Specifically, Wiener acquired 8,726 RSUs at no cost, which are subject to vesting under the company's Omnibus Incentive Compensation Plan. After this transaction, Wiener's total ownership in Cars.com increased to 71,639 shares, including the RSUs.
Cars.com, a leading online automotive marketplace, has been at the forefront of connecting car shoppers with sellers. The company's stock transactions by insiders are closely watched by investors as they can provide insights into the company's performance and the confidence level of its executives and directors.
The recent transactions by Bryan Wiener were executed in multiple parts, and the weighted average selling price of $20.51 per share was reported. Wiener has committed to providing detailed information regarding the number of shares sold at each separate price within the reported range, if requested by the issuer, any security holder, or the SEC staff.
Investors and stakeholders can access the full details of these transactions through the SEC's website, ensuring transparency and compliance with regulatory requirements. The company's stock continues to be monitored by market participants for further developments and insider trading activity.
In other recent news, Cars.com has reported a promising start to 2024, with a robust 8% year-over-year increase in revenue during the first quarter. This growth is attributed to the company's strategic focus on software and digital solutions, as well as a rise in OEM and national sales. Notably, the company exceeded its own adjusted EBITDA margin estimates, reporting $53 million with a margin of 29.2%.
Looking ahead, Cars.com projects its growth momentum to continue into the second quarter, with anticipated revenues between $181 million and $183 million, marking a 7% to 9% year-over-year growth. Additionally, the company has repurchased 500,000 shares for $9.5 million and reduced its debt to $480 million.
Cars.com also reaffirms its full-year guidance, expecting a 6% to 8% revenue growth and an adjusted EBITDA margin between 28% and 30%. The company's strategies include increasing dealer count and ARPD, integrating Accu-Trade and CreditIQ into dealer websites, and cross-selling additional products.
Despite facing profitability challenges due to rising inventory levels and pricing pressures, Cars.com's marketplace, solutions, and media business lines have all shown improvement. Furthermore, Accu-Trade has seen accelerated growth, generating 622,000 appraisals in the quarter.
Finally, CEO Alex Vetter highlighted the company's successful collaboration with Ford (NYSE:F) dealers, attributing approximately 20% of new sales to the OEM endorsement. Cars.com plans to focus on consumer education for electric vehicles (EVs), believing their digital platform can help reduce range anxiety.
InvestingPro Insights
In light of the recent insider trading activity at Cars.com Inc. (NYSE:CARS), where director Bryan Wiener sold shares while also acquiring restricted stock units, investors may be seeking additional data to gauge the company's current financial health and market position. According to real-time data from InvestingPro, Cars.com has a market capitalization of approximately $1.35 billion and a trailing twelve months Price-to-Earnings (P/E) ratio as of Q1 2024 of 10.95, which is below the initial P/E ratio of 12.59, indicating a potential undervaluation of the stock. Furthermore, the company has experienced a revenue growth of 5.97% over the last twelve months as of Q1 2024.
InvestingPro Tips suggest that Cars.com's stock price movements are quite volatile and the Relative Strength Index (RSI) indicates that the stock is currently in overbought territory. This could imply that the stock might see a pullback in the near term. Additionally, it is noteworthy that analysts predict the company will be profitable this year and it has been profitable over the last twelve months. These insights could help investors understand the dynamics of the stock's recent performance, including the strong return over the last month with a 1-month price total return of 18.74%.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on Cars.com, which can be accessed by visiting https://www.investing.com/pro/CARS. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these resources, investors can make more informed decisions based on a variety of metrics and expert insights. There are currently 9 additional InvestingPro Tips available for Cars.com, providing a deeper dive into the company's financial and market performance.
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