Starboard Value, an activist investor, has purchased 9.9% of Cars.com’s stock, claiming the value of the stock is being undermined and stock purchasers are missing out on a great buy.
Starboard says that Cars.com will pull in more money once it doesn’t need to answer to a multitude of investors. The firm often buys large stake in big companies, attempting to sway the leaders of the business to take matters in a new direction.
Cars.com has responded, stating that they wish to act in their shareholder’s best interests. Cars.com may be privately owned, but they have affiliate partnerships they must abide by. They will be free of those partnerships in a few years, making a larger option available for making money.
Cars.com’s stock has been on the rise, with many investors betting on 30% of its available stock at any given time. Cars.com is poised to grow immensely over the coming years, recently making a profit of almost 100 million USD.