CarGurus (NASDAQ:CARG) Shares Up 12.7% – Still a Buy?

CarGurus, Inc. (NASDAQ:CARG)’s share price rose 12.7% during trading on Wednesday. The company traded as high as $37.66 and last traded at $38.0470. Approximately 533,873 shares traded hands during trading, a decline of 58% from the average session volume of 1,264,451 shares. The stock had previously closed at $33.77.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CARG. Wall Street Zen upgraded shares of CarGurus from a “hold” rating to a “buy” rating in a report on Saturday. Royal Bank Of Canada upped their price objective on shares of CarGurus from $35.00 to $42.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Weiss Ratings cut shares of CarGurus from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. BTIG Research lifted their target price on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, Needham & Company LLC lifted their target price on shares of CarGurus from $43.00 to $44.00 and gave the company a “buy” rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $39.95.

CarGurus Price Performance

The firm has a market cap of $3.30 billion, a PE ratio of 20.14, a price-to-earnings-growth ratio of 1.20 and a beta of 1.22. The firm has a 50-day simple moving average of $32.22 and a 200 day simple moving average of $32.83.

CarGurus (NASDAQ:CARG) last released its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05. The firm had revenue of $250.97 million for the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The company’s revenue was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Sell-side analysts forecast that CarGurus, Inc. will post 2.17 earnings per share for the current fiscal year.

Insider Transactions at CarGurus

In related news, CTO Matthew Quinn sold 3,824 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $29.62, for a total transaction of $113,266.88. Following the completion of the transaction, the chief technology officer owned 220,193 shares of the company’s stock, valued at $6,522,116.66. This trade represents a 1.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Samuel Zales sold 10,000 shares of CarGurus stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $32.33, for a total value of $323,300.00. Following the transaction, the chief operating officer owned 419,735 shares of the company’s stock, valued at $13,570,032.55. The trade was a 2.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 83,946 shares of company stock worth $2,848,261. Company insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On CarGurus

Institutional investors and hedge funds have recently modified their holdings of the stock. Congress Asset Management Co. boosted its stake in CarGurus by 7.6% in the 3rd quarter. Congress Asset Management Co. now owns 2,125,686 shares of the company’s stock worth $66,236,000 after purchasing an additional 149,338 shares in the last quarter. Bessemer Group Inc. increased its stake in CarGurus by 18.2% during the 1st quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company’s stock valued at $36,945,000 after purchasing an additional 166,954 shares in the last quarter. Bank of America Corp DE raised its holdings in CarGurus by 26.6% in the first quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock worth $19,965,000 after buying an additional 123,364 shares during the last quarter. Principal Financial Group Inc. raised its holdings in CarGurus by 19.1% in the first quarter. Principal Financial Group Inc. now owns 573,406 shares of the company’s stock worth $19,524,000 after buying an additional 91,755 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in CarGurus in the second quarter worth about $15,631,000. 86.90% of the stock is currently owned by institutional investors.

About CarGurus

CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers.

The company also offers tools intended to support automotive retailers’ online operations, including inventory merchandising, lead generation and digital retailing capabilities.