CarGurus (NASDAQ:CARG) Stock Rating Cut to Hold at Wall Street Zen

Wall Street Zen cut shares of CarGurus (NASDAQ:CARG) from a buy rating to a hold rating in a research report released on Saturday,Wall Street Zen reports.

Several other brokerages have also recently commented on CARG. BTIG Research increased their target price on shares of CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Citigroup lifted their price target on shares of CarGurus from $32.00 to $39.00 and gave the company a “neutral” rating in a research note on Friday, August 14th. Freedom Capital raised shares of CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. Piper Sandler restated a “sector weight” rating on shares of CarGurus in a research note on Friday, June 12th. Finally, Royal Bank Of Canada raised their price objective on CarGurus from $35.00 to $42.00 and gave the company an “outperform” rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $40.75.

CarGurus Stock Performance

NASDAQ CARG opened at $30.02 on Friday. The stock has a market capitalization of $2.67 billion, a price-to-earnings ratio of 16.32, a PEG ratio of 1.07 and a beta of 1.22. The stock’s 50 day moving average price is $34.80 and its two-hundred day moving average price is $33.59. CarGurus has a 52 week low of $26.39 and a 52 week high of $41.22.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.05. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The company had revenue of $250.97 million during the quarter, compared to analysts’ expectations of $249.85 million. During the same period last year, the business earned $0.57 EPS. The business’s quarterly revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, equities research analysts forecast that CarGurus will post 2.17 EPS for the current year.

Insider Buying and Selling

In other news, Director Greg Schwartz sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $36.07, for a total transaction of $360,700.00. Following the transaction, the director directly owned 8,716 shares in the company, valued at $314,386.12. The trade was a 53.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Javier Zamora sold 6,205 shares of the company’s stock in a transaction dated 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 sale, the general counsel directly owned 80,260 shares in the company, valued at approximately $2,976,040.80. The trade was a 7.18% decrease in their ownership of the stock. 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 quarter, insiders have sold 54,456 shares of company stock worth $1,981,734. Corporate insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On CarGurus

A number of institutional investors have recently bought and sold shares of CARG. Prevatt Capital Ltd lifted its position in shares of CarGurus by 12.5% in the first quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company’s stock valued at $84,274,000 after buying an additional 275,000 shares during the last quarter. Geode Capital Management LLC raised its stake in CarGurus by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company’s stock valued at $80,602,000 after acquiring an additional 24,910 shares during the period. Alta Fox Capital Management LLC raised its stake in CarGurus by 15.9% in the 4th quarter. Alta Fox Capital Management LLC now owns 1,273,544 shares of the company’s stock valued at $48,840,000 after acquiring an additional 174,844 shares during the period. Fort Washington Investment Advisors Inc. OH lifted its holdings in CarGurus by 8.5% during the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 1,110,231 shares of the company’s stock valued at $37,803,000 after purchasing an additional 86,600 shares during the last quarter. Finally, Bessemer Group Inc. lifted its holdings 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 during the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.

About CarGurus

CarGurus, Inc is a digital automotive marketplace that connects consumers with dealerships and private sellers offering new and used vehicles. Its platform enables shoppers to search vehicle listings, compare prices and features, review dealership information, and evaluate vehicle deals using data-driven tools. CarGurus generates revenue primarily by providing automotive dealers with listing, advertising, and other digital marketing services.

The company also offers products designed to help dealers attract shoppers, manage vehicle listings, and support the online and in-person vehicle-buying process.