CarGurus (NASDAQ:CARG) Trading Down 8.9% – Here’s What Happened

CarGurus, Inc. (NASDAQ:CARG) shares were down 8.9% during trading on Friday . The company traded as low as $34.84 and last traded at $34.7570. Approximately 407,753 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 1,202,807 shares. The stock had previously closed at $38.16.

Trending Headlines about CarGurus

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q1 results: EPS beat and adjusted profitability outperformed guidance — CarGurus reported $0.58 EPS vs. $0.56 consensus, and non‑GAAP adjusted EBITDA came in above the high end of guidance, supporting margin strength. GlobeNewsWire: Q1 Results
• Positive Sentiment: Large share repurchases: management repurchased $175M of stock in Q1 (repurchases since Dec 2022 represent ~29% of shares outstanding), which is a strong capital‑return signal that can support the share price. GlobeNewsWire: Buybacks
• Positive Sentiment: Analyst upgrade/target lift: Needham raised its price target from $37 to $43 and maintained a Buy rating, signaling analyst confidence in upside versus current levels. Benzinga / The Fly: Needham PT Raise
• Neutral Sentiment: Q2 guidance roughly in line: management set Q2 EPS of $0.570–$0.640 (consensus ~$0.580) and revenue guidance $247–252M vs. consensus ~$249M — guidance is generally consistent with expectations but leaves a wide band. MarketBeat: Guidance & Call
• Neutral Sentiment: Marketing/strategy initiatives: coverage highlights marketing pushes (NASCAR Canada partnership and Confidence Awards) that could help customer acquisition and brand awareness over time but are not immediate revenue levers. Yahoo Finance: NASCAR Canada Push
• Negative Sentiment: GAAP net income decline and mixed investor reaction: GAAP net income from continuing operations fell ~23% YoY, and despite the beat, the stock pulled back after the release as investors digested the decline and guidance nuance. GlobeNewsWire: GAAP Net Income
• Negative Sentiment: Market reaction & headlines: several outlets noted the stock dropped after results despite in‑line sales and the EPS beat, reflecting investor focus on near‑term guidance and GAAP metrics. MSN: Stock Drops

Wall Street Analyst Weigh In

A number of research analysts have commented on CARG shares. Oppenheimer decreased their price objective on CarGurus from $40.00 to $38.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 24th. DA Davidson decreased their price objective on CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Needham & Company LLC increased their price objective on CarGurus from $37.00 to $43.00 and gave the company a “buy” rating in a research report on Friday. Wall Street Zen lowered CarGurus from a “buy” rating to a “hold” rating in a research report on Sunday, February 15th. Finally, UBS Group reiterated a “neutral” rating and issued a $37.00 price objective on shares of CarGurus in a research report on Friday. Five investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $38.59.

CarGurus Trading Down 7.7%

The firm has a market cap of $3.35 billion, a price-to-earnings ratio of 22.75, a P/E/G ratio of 1.40 and a beta of 1.28. The company has a 50 day moving average of $34.59 and a 200 day moving average of $34.63.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.58 EPS for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.12 million. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The firm’s revenue was up 8.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.46 EPS. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Equities analysts forecast that CarGurus, Inc. will post 2.06 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Matthew Todd Quinn sold 4,341 shares of the firm’s stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total transaction of $143,426.64. Following the sale, the chief technology officer owned 246,098 shares of the company’s stock, valued at approximately $8,131,077.92. This trade represents a 1.73% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Kaufer acquired 30,766 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were acquired at an average cost of $32.50 per share, for a total transaction of $999,895.00. Following the purchase, the director directly owned 323,939 shares in the company, valued at $10,528,017.50. This trade represents a 10.49% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders sold 12,852 shares of company stock worth $431,053. 16.99% of the stock is owned by corporate insiders.

Institutional Trading of CarGurus

Several hedge funds and other institutional investors have recently modified their holdings of CARG. Farther Finance Advisors LLC raised its stake in shares of CarGurus by 71.1% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,066 shares of the company’s stock valued at $40,000 after purchasing an additional 443 shares during the period. Brown Brothers Harriman & Co. acquired a new stake in shares of CarGurus in the 3rd quarter valued at about $46,000. Torren Management LLC acquired a new stake in shares of CarGurus in the 4th quarter valued at about $49,000. First Horizon Corp acquired a new stake in shares of CarGurus in the 3rd quarter valued at about $51,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of CarGurus by 491.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after purchasing an additional 1,362 shares during the period. Institutional investors and hedge funds own 86.90% of the company’s stock.

About CarGurus

CarGurus, Inc operates an online automotive marketplace designed to connect buyers and sellers of new and used vehicles. Through its proprietary search engine and data-driven pricing tools, the platform enables consumers to compare listings, assess fair market values and locate local dealers offering competitive deals. CarGurus also provides detailed vehicle history reports, dealer reviews and financing options to streamline the car-shopping process for both private parties and franchised dealerships.

The company’s core product offerings include Instant Market Value (IMV), which leverages pricing algorithms to help buyers identify over- or under-priced vehicles, as well as dealer subscription services that grant automotive retailers access to lead generation tools, targeted advertising and dynamic pricing insights.