HomeTop MoversWhy Cars.com Inc. (CARS) stock soared on Wednesday?

Why Cars.com Inc. (CARS) stock soared on Wednesday?

Cars.com Inc. shares soared 9.69% in after-hours on Wednesday, November 24, 2021, and closed the daily trading at $14.60. Even in the regular trading session of Wednesday, CARS’ stock gained 0.30%. CARS shares have risen 18.73% over the last 12 months, and they have moved up by 4.31% in the past week. Over the past three months, the stock has gained 10.00%, while over the past six months, it has lost 9.70%.

Let’s briefly discuss its recent news and developments.


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CARS on S&P SmallCap 600

Cars.com Inc. (CARS) will replace DSP Group Inc. (DSPG) in the S&P SmallCap 600 on December 2, 2021.

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CARS completed CreditIQ acquisition

On November 9, 2021, Cars.com Inc. completed the acquisition of CreditIQ, which was announced last week. CreditIQ is a cutting-edge automotive fintech platform that provides instant online loan screening and approvals to facilitate online car buying.

The company paid $30 million at the closing on November 5, 2021. There may be future payments of up to an additional $50 million in performance-based cash consideration to be earned over the next three years.

CreditIQ was founded by automotive and lending software experts Bill Liatsis, Anthony Liatsis, and Bill Gerhard in 2014. The company is based in New York and develops digital retail financing technology designed to facilitate online car sales and streamline in-store processes for auto dealers.

CARS latest financial results

On November 4, 2021, Cars.com Inc. announced its financial results for the quarter that ended September 30, 2021.

Q3 2021 financial highlights

  • CARS reported total revenue of 6 million in Q3 2021 compared to $144.4 million in Q3 2020.
  • In Q3 2021, the total operating expenses were $144.5 million compared to $125.3 million in Q3 2020.
  • It earned GAAP net income of $2.4 million or $0.03per diluted share in Q3 2021 compared to GAAP net loss of $12.3 million, or $0.18 per diluted share in Q3 2020.
  • Adjusted EBITDA was $45.8 million in the third quarter of 2021, compared to $49.0 million for the same period of the prior year.

Q4 2021 financial outlook

For Q4, 2021, the company is expecting,

Conclusion

Though we do not have any recent news some recent past news could be the reason behind its positive performance on Wednesday and we can expect it to continue its positive momentum on Friday as well, after the holiday.

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