CarGurus (NASDAQ:CARG) Stock Rating Lowered by Wall Street Zen

CarGurus (NASDAQ:CARG) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

Other analysts have also issued reports about the company. Weiss Ratings lowered CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 13th. B. Riley Financial reaffirmed a “buy” rating on shares of CarGurus in a research note on Friday. UBS Group increased their price objective on shares of CarGurus from $37.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday. Freedom Capital raised shares of CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. Finally, Needham & Company LLC boosted their target price on shares of CarGurus from $43.00 to $44.00 and gave the company a “buy” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $40.25.

CarGurus Stock Performance

Shares of CARG opened at $38.99 on Friday. CarGurus has a fifty-two week low of $26.39 and a fifty-two week high of $41.22. The company has a market capitalization of $3.52 billion, a PE ratio of 21.19, a price-to-earnings-growth ratio of 1.42 and a beta of 1.17. The stock has a fifty day moving average of $32.85 and a two-hundred day moving average of $32.64.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings data 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 business had revenue of $250.97 million for the quarter, compared to analysts’ expectations of $249.85 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The business’s revenue was up 7.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, equities research analysts forecast that CarGurus will post 2.11 earnings per share for the current fiscal year.

Insider Transactions at CarGurus

In related news, CTO Matthew Todd Quinn sold 3,824 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total transaction of $133,954.72. Following the completion of the sale, the chief technology officer owned 233,146 shares of the company’s stock, valued at approximately $8,167,104.38. This represents a 1.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 6,205 shares of the firm’s stock in a transaction that occurred 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 in the company, valued at $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. In the last quarter, insiders sold 31,764 shares of company stock worth $1,071,649. 18.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CarGurus

Hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp purchased a new stake in CarGurus during the 2nd quarter worth $15,631,000. Hennion & Walsh Asset Management Inc. raised its position in CarGurus by 1.9% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 24,318 shares of the company’s stock valued at $829,000 after purchasing an additional 459 shares during the period. Pacer Advisors Inc. raised its position in CarGurus by 31.5% in the first quarter. Pacer Advisors Inc. now owns 342,949 shares of the company’s stock valued at $11,677,000 after purchasing an additional 82,222 shares during the period. Bank of America Corp DE lifted its stake in shares of CarGurus by 26.6% during the first quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock worth $19,965,000 after purchasing an additional 123,364 shares in the last quarter. Finally, Janus Henderson Group PLC lifted its stake in shares of CarGurus by 8.1% during the first quarter. Janus Henderson Group PLC now owns 229,225 shares of the company’s stock worth $7,805,000 after purchasing an additional 17,139 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

Trending Headlines about CarGurus

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q2 earnings beat expectations: CarGurus reported adjusted earnings of $0.66 per share, up from $0.57 a year earlier and above analysts’ estimates of approximately $0.61–$0.62. Revenue reached $251.0 million, slightly exceeding consensus expectations and increasing 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Strong profitability and cash generation: Second-quarter GAAP net income from continuing operations was $49.2 million. Adjusted EBITDA was $84.7 million, near the high end of company guidance, while operating cash flow was $94.6 million and free cash flow was $87.7 million. CarGurus Announces Second Quarter 2026 Results
• Positive Sentiment: Above-consensus Q3 outlook: CarGurus guided for third-quarter EPS of $0.63–$0.69, ahead of the $0.61 analyst consensus. Revenue guidance of $253.5 million–$258.5 million was broadly consistent with expectations, suggesting continued year-over-year growth. CarGurus Earnings Report
• Positive Sentiment: Share repurchases support per-share value: The company repurchased $29.2 million of stock during Q2. Since December 2022, cumulative repurchases have exceeded 30% of shares outstanding, which can support EPS and shareholder returns. CarGurus Q2 Results Presentation
• Neutral Sentiment: Revenue was only modestly above estimates, and the available report does not provide a clear updated full-year 2026 EPS target. Investors may therefore focus on future growth trends and the company’s ability to sustain its strong margins and cash flow.

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.