CarGurus (NASDAQ:CARG) Stock Rating Raised to “Buy” at Wall Street Zen

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

Several other equities research analysts have also recently commented on CARG. Royal Bank Of Canada increased their price target on CarGurus from $35.00 to $42.00 and gave the company an “outperform” rating in a report on Friday, August 7th. B. Riley Financial reissued a “buy” rating on shares of CarGurus in a research note on Friday, August 7th. BTIG Research upped their target price on CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a report on Friday, August 7th. Oppenheimer raised their target price on CarGurus from $38.00 to $44.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 12th. Finally, Barclays cut their target price on CarGurus from $41.00 to $38.00 and set an “overweight” rating for the company in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, CarGurus currently has a consensus rating of “Moderate Buy” and a consensus price target of $39.95.

CarGurus Stock Performance

Shares of CARG stock opened at $32.18 on Friday. The stock’s fifty day moving average is $32.35 and its two-hundred day moving average is $32.85. The firm has a market capitalization of $2.87 billion, a P/E ratio of 17.49, a PEG ratio of 1.14 and a beta of 1.22. CarGurus has a fifty-two week low of $26.39 and a fifty-two week high of $41.22.

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

Insiders Place Their Bets

In other news, CMO Dafna Sarnoff sold 7,234 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $29.62, for a total transaction of $214,271.08. Following the completion of the sale, the chief marketing officer owned 94,884 shares in the company, valued at $2,810,464.08. This trade represents a 7.08% decrease in their position. The sale 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, 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 sale, the chief technology officer owned 220,193 shares of the company’s stock, valued at $6,522,116.66. This represents a 1.71% 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. Over the last 90 days, insiders have sold 78,187 shares of company stock worth $2,691,547. 18.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CarGurus

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CARG. Public Employees Retirement System of Ohio purchased a new stake in shares of CarGurus in the 2nd quarter valued at approximately $43,000. Farther Finance Advisors LLC lifted its holdings in shares of CarGurus by 107.5% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,531 shares of the company’s stock worth $48,000 after acquiring an additional 793 shares during the last quarter. Signaturefd LLC boosted its position in shares of CarGurus by 59.6% during the 3rd quarter. Signaturefd LLC now owns 1,953 shares of the company’s stock worth $61,000 after purchasing an additional 729 shares during the period. Rockefeller Capital Management L.P. boosted its position in shares of CarGurus by 356.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock worth $83,000 after purchasing an additional 1,697 shares during the period. Finally, Versant Capital Management Inc boosted its position in shares of CarGurus by 20.2% during the 3rd quarter. Versant Capital Management Inc now owns 2,325 shares of the company’s stock worth $72,000 after purchasing an additional 391 shares during the period. Institutional investors and hedge funds own 86.90% of the company’s stock.

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 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.