CarGurus, Inc. (NASDAQ:CARG) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

Shares of CarGurus, Inc. (NASDAQ:CARG) have been given an average recommendation of “Moderate Buy” by the fifteen ratings firms that are covering the company, Marketbeat Ratings reports. Seven analysts have rated the stock with a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $40.75.

A number of research firms have weighed in on CARG. Needham & Company LLC raised their price target on CarGurus from $43.00 to $44.00 and gave the company a “buy” rating in a research note on Friday, August 7th. BTIG Research upped their price objective on CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Freedom Capital raised CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a report on Friday, June 12th. Finally, Citigroup raised their target price on CarGurus from $32.00 to $39.00 and gave the stock a “neutral” rating in a research report on Friday, August 14th.

CarGurus Stock Up 1.0%

NASDAQ CARG opened at $31.30 on Tuesday. CarGurus has a 52 week low of $26.39 and a 52 week high of $41.22. The firm has a 50 day moving average of $35.15 and a two-hundred day moving average of $33.64. The stock has a market capitalization of $2.79 billion, a PE ratio of 17.01, a price-to-earnings-growth ratio of 1.11 and a beta of 1.16.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.05. The business had revenue of $250.97 million for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period last year, the business earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, equities research analysts expect that CarGurus will post 2.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CMO Dafna Sarnoff sold 17,151 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $37.00, for a total transaction of $634,587.00. Following the completion of the sale, the chief marketing officer owned 109,668 shares in the company, valued at approximately $4,057,716. The trade was a 13.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 6,205 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $37.08, for a total transaction of $230,081.40. Following the completion of the transaction, the general counsel owned 80,260 shares of the company’s stock, valued at approximately $2,976,040.80. The trade was a 7.18% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 68,411 shares of company stock valued at $2,469,687 over the last three months. 18.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On CarGurus

A number of institutional investors and hedge funds have recently bought and sold shares of CARG. Lazard Asset Management LLC grew its holdings in shares of CarGurus by 180.8% during the first quarter. Lazard Asset Management LLC now owns 445,868 shares of the company’s stock worth $15,182,000 after purchasing an additional 287,067 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of CarGurus by 26.6% in the 1st quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock valued at $19,965,000 after purchasing an additional 123,364 shares during the last quarter. Westover Capital Advisors LLC purchased a new stake in shares of CarGurus in the 4th quarter valued at about $1,912,000. Louisiana State Employees Retirement System purchased a new stake in shares of CarGurus in the 1st quarter valued at about $1,226,000. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of CarGurus in the 1st quarter valued at about $3,487,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

CarGurus Company Profile

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 pricing and vehicle details, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital advertising and marketing products designed to help them display inventory and reach prospective buyers.

The company also provides tools and services intended to support automotive retailers throughout the vehicle-shopping process, including inventory merchandising, lead generation, pricing insights and digital retail capabilities.