Royal Bank Of Canada Has Lowered Expectations for CarGurus (NASDAQ:CARG) Stock Price

CarGurus (NASDAQ:CARG) had its target price decreased by investment analysts at Royal Bank Of Canada from $40.00 to $34.00 in a note issued to investors on Friday, MarketBeat Ratings reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s target price would indicate a potential upside of 11.67% from the company’s previous close.

CARG has been the topic of a number of other research reports. Jefferies Financial Group increased their price objective on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Needham & Company LLC decreased their target price on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research report on Thursday, February 5th. Wall Street Zen cut CarGurus from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. DA Davidson lowered their target price on CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research report on Friday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of CarGurus in a research note on Monday, December 29th. Five research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $38.50.

CarGurus Trading Up 4.3%

CARG traded up $1.25 during trading on Friday, reaching $30.45. 419,929 shares of the company were exchanged, compared to its average volume of 1,072,944. CarGurus has a 52 week low of $24.65 and a 52 week high of $39.42. The firm has a 50 day moving average of $34.44 and a 200 day moving average of $34.81. The stock has a market cap of $2.91 billion, a P/E ratio of 20.25, a PEG ratio of 1.06 and a beta of 1.35.

Insiders Place Their Bets

In other news, CEO Jason Trevisan sold 16,548 shares of the company’s stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $39.02, for a total transaction of $645,702.96. Following the transaction, the chief executive officer directly owned 630,483 shares in the company, valued at approximately $24,601,446.66. This represents a 2.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jennifer Ladd Hanson sold 2,358 shares of the company’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $38.10, for a total value of $89,839.80. Following the transaction, the insider directly owned 50,466 shares in the company, valued at $1,922,754.60. This trade represents a 4.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 49,003 shares of company stock worth $1,858,494 in the last ninety days. Insiders own 16.99% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CARG. Invesco Ltd. raised its holdings in shares of CarGurus by 1.5% in the 4th quarter. Invesco Ltd. now owns 1,702,402 shares of the company’s stock valued at $65,287,000 after purchasing an additional 24,788 shares during the period. Mercer Global Advisors Inc. ADV grew its position in shares of CarGurus by 35.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 12,936 shares of the company’s stock valued at $496,000 after purchasing an additional 3,385 shares during the last quarter. Vident Advisory LLC grew its stake in shares of CarGurus by 1.4% in the fourth quarter. Vident Advisory LLC now owns 155,205 shares of the company’s stock valued at $5,952,000 after acquiring an additional 2,207 shares in the last quarter. XTX Topco Ltd bought a new position in CarGurus during the fourth quarter worth about $900,000. Finally, Kensington Investment Counsel LLC bought a new stake in CarGurus in the 4th quarter valued at about $1,182,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

Trending Headlines about CarGurus

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 earnings beat expectations — CarGurus reported $0.63 EPS vs. the Zacks consensus $0.61, and EPS rose vs. a year ago; this supports the stock’s momentum following results. CarGurus (CARG) Beats Q4 Estimates
• Positive Sentiment: Strong full?year results and capital return — FY2025 GAAP net income +53% YoY, Adj. EBITDA +25% YoY; repurchased ~ $350M of stock in 2025 and announced a new $250M buyback for 2026, which is shareholder?friendly and supports the share price. CarGurus Announces Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: FY revenue guidance raised above consensus — company gave FY2026 revenue range roughly $997.7M–$1.0B, above Street estimate (~$970.9M), indicating top?line confidence for the year. FY Guidance in Press Release
• Positive Sentiment: Market/analyst commentary highlights AI adoption as a growth catalyst — coverage notes upside if the company accelerates AI monetization, which investors are rewarding. Analysts Eye AI Adoption Pace
• Neutral Sentiment: Q1 EPS guidance mixed — CarGurus gave Q1 EPS guidance of $0.52–$0.58 vs. consensus $0.56 (range straddles Street), so guidance is roughly in line but not a clear beat.
• Neutral Sentiment: Earnings materials/transcript available — investors can review the Q4 call and transcript for management commentary on margins, AI plans and dealer demand. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Short?interest data posted is anomalous (shows zero shares); treat as unreliable until clarified — no clear signal from shorts.
• Negative Sentiment: Analyst price target cut — DA Davidson lowered its price target from $37.50 to $33.50 and set a “neutral” rating, which could cap near?term upside if other firms follow. DA Davidson Lowers PT (Benzinga)
• Negative Sentiment: Alleged data leak reported — a third?party publication reported that “ShinyHunters” may have taken ~1.7M records; potential reputational, legal or remediation costs could concern investors while details are investigated. Alleged Data Leak Report

CarGurus Company Profile

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.