Cars.com Inc. shares hit prices the young stock has never seen Monday, jumping 11% in after-hours action following a report that activist investor Starboard had acquired a significant stake in the company. The Wall Street Journal reported that Starboard believed Cars.com was undervalued due to heavy short selling and is a potential buyout target for private-equity firms, according to anonymous sources. The company was split off from Tegna Inc. earlier this year, and had a valuation of slightly less than $2 billion at Monday’s closing price. After the Journal report hit, share prices spiked to nearly $31, easily topping the company’s high of $29.47.
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