CarGurus (NASDAQ:CARG) Upgraded 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 morning.

Other research analysts have also recently issued research reports about the stock. Needham & Company LLC lifted their price target on shares of CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a research note on Friday. Royal Bank Of Canada decreased their target price on CarGurus from $40.00 to $34.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. 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, February 20th. BTIG Research cut their price target on CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a report on Friday, February 20th. Finally, JPMorgan Chase & Co. raised their price objective on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research note on Friday. Five analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $38.14.

CarGurus Stock Down 9.0%

NASDAQ CARG opened at $34.74 on Friday. The company has a 50-day moving average price of $34.59 and a 200-day moving average price of $34.63. CarGurus has a 52 week low of $26.39 and a 52 week high of $39.42. The firm has a market capitalization of $3.31 billion, a P/E ratio of 22.86, a PEG ratio of 1.30 and a beta of 1.28.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. CarGurus had a net margin of 15.57% and a return on equity of 48.98%. The company had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.12 million. During the same quarter last year, the firm posted $0.46 earnings per share. The firm’s revenue was up 8.2% compared to the same quarter last year. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, equities research analysts anticipate that CarGurus will post 2.06 EPS for the current year.

Insider Activity

In other news, insider Jennifer Ladd Hanson sold 2,499 shares of the company’s stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $35.61, for a total value of $88,989.39. Following the completion of the transaction, the insider owned 98,191 shares of the company’s stock, valued at $3,496,581.51. This represents a 2.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 5,445 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total value of $179,902.80. Following the sale, the chief marketing officer owned 134,369 shares of the company’s stock, valued at $4,439,551.76. This represents a 3.89% 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. Insiders have sold a total of 12,852 shares of company stock worth $431,053 in the last quarter. Corporate insiders own 16.99% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CARG. JPMorgan Chase & Co. lifted its holdings in shares of CarGurus by 17.8% in the third quarter. JPMorgan Chase & Co. now owns 545,636 shares of the company’s stock worth $20,314,000 after buying an additional 82,511 shares in the last quarter. Jupiter Asset Management Ltd. grew its stake in CarGurus by 230.6% during the third quarter. Jupiter Asset Management Ltd. now owns 580,117 shares of the company’s stock valued at $21,598,000 after acquiring an additional 404,617 shares in the last quarter. Aurora Investment Counsel bought a new stake in CarGurus in the 3rd quarter valued at $2,174,000. Envestnet Asset Management Inc. increased its holdings in CarGurus by 100.3% in the 3rd quarter. Envestnet Asset Management Inc. now owns 102,818 shares of the company’s stock valued at $3,828,000 after acquiring an additional 51,487 shares during the last quarter. Finally, Congress Asset Management Co. lifted its stake in CarGurus by 2.9% in the 4th quarter. Congress Asset Management Co. now owns 1,958,144 shares of the company’s stock worth $75,095,000 after purchasing an additional 54,937 shares in the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue of $243.6 million was also slightly above expectations and up 8.2% year over year. Q1 Earnings Report and Conference Call
• Positive Sentiment: The company said Q1 adjusted EBITDA came in above the high end of guidance, and it repurchased $175 million of stock during the quarter, signaling strong cash generation and capital return. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Needham raised its price target on CarGurus from $37 to $43 and kept a Buy rating, while JPMorgan also lifted its target from $36 to $38, reinforcing optimism around the stock. Analyst price target updates
• Neutral Sentiment: CarGurus’ Q2 guidance calls for EPS of $0.57 to $0.64 and revenue of $247 million to $252 million, which is broadly in line with Street expectations and suggests steady near-term growth. Q1 Results and Guidance
• Negative Sentiment: Despite the earnings beat, some market commentary noted the stock sold off after the report, suggesting investors may be focusing on guidance and valuation rather than just the headline beat. Market reaction article

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.