Cars.com shares leap after report the company hired J.P. Morgan to explore a potential sale

Shares of Cars.com jumped 8.8 percent Wednesday after a report the online car retailer hired J.P. Morgan to explore a possible sale.

Shares rose 1 percent in after-hours trading.

The New York Post reported Wednesday afternoon, citing a source, that Cars.com has hired J.P. Morgan to explore strategic options that include a potential sale of the company. The source said a sale looks likely, at possibly $40 a share.

Cars.com has a $1.9 billion market value and closed at $26.59 a share Wednesday, down 7.8 percent for the year.

In March, the company said its board would add two directors supported by activist investor Starboard Value. Starboard is the second-largest investor in Cars.com and had a 9.4 percent stake in outstanding shares as of March 31, according to FactSet.

Representatives for Cars.com and J.P. Morgan did not immediately respond to a CNBC request for comment.