CARS Stock Deep in NYSE Cellar, Hit Record Low

CARS is currently at a 61% YTD defecit

Jake Scott
Mar 19, 2020 at 10:37 AM
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As the coronavirus pandemic continues to ravage the global market, consumers still have transportation needs for the time being. However, that hasn't helped Cars.com Inc (NYSE:CARS) which sits near the bottom of the New York Stock Exchange (NYSE) today, without any clear catalyst. Currently, CARS shares are down 15% to trade at $4.69, and earlier hit a new record low of $4.58.

On the charts, Cars.com stock has been in a sharp and steady decline since hitting an annual high of $13.47 in early February. During that time frame, the equity has been pressured lower by its 10-day moving average, and racked up staggering 61% year-to-date deficit along the way.

Meanwhile, analysts remain bullish on the equity. Of the six reporting firms, five sport a “strong buy” position with the remaining analyst recommending a “hold” spot. Plus, the security’s consensus 12-month price target of $11.88 which currently sits at a whopping 120% premium to the stock’s current levels. In other words, CARS is ripe for a flurry of bear notes that could pressure the shares lower.

In the options pits though, puts are favored. The equity shows a Schaeffer's put/call open interest ratio (SOIR) of 2.28, ranking in the elevated 89th percentile. In other words, short-term options players have rarely been more put-heavy during the last 12 months.

Echoing this, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DAL sports a 10-day put/call volume ratio of 41.59. This ratio sits in the 100th percentile, so while calls have outpaced puts on an absolute basis, the rate of put buying relative to call buying has been accelerated.

 


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