Why Cars.com Stock Jumped 12% This Morning
Shares of digital automotive marketplace Cars.com (NYSE: CARS) opened higher and rose 12% through 10:20 a.m. EDT in early trading on Wednesday. There appear to be two catalysts driving the stock today.
First and less significantly, Cars.com co-founder Thomas Vetter informed the Securities and Exchange Commission on Tuesday that on Monday, he purchased 12,000 shares of his company's stock at $8.50 per share. Although this is a positive development from its shareholders' point of view (i.e., an insider expressing confidence in the stock's value), the increase in Vetter's stake in the company is marginal, at just 1.6% of his total holdings.
Second and more importantly (although less recent), Car and Driver magazine has reported on the continuing demand for used cars as commuters seek to socially distance themselves, rather than riding on crowded public transit or using ridesharing services such as Uber and Lyft.
Source Fool.com
