CarGurus (NASDAQ:CARG) Stock Price Up 6.8% – Time to Buy?

CarGurus, Inc. (NASDAQ:CARG) shares shot up 6.8% during mid-day trading on Tuesday . The company traded as high as $33.18 and last traded at $33.1770. 627,714 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 1,254,048 shares. The stock had previously closed at $31.06.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CARG. Royal Bank Of Canada lowered their price target on CarGurus from $40.00 to $34.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. UBS Group set a $38.00 target price on CarGurus in a research note on Tuesday, February 24th. Weiss Ratings reiterated a “hold (c+)” rating on shares of CarGurus in a report on Monday, December 29th. Wall Street Zen cut shares of CarGurus from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. Finally, BTIG Research lowered their price objective on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research report on Friday, February 20th. Five investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $38.14.

CarGurus Price Performance

The business has a 50 day simple moving average of $31.88 and a 200 day simple moving average of $34.74. The stock has a market cap of $3.27 billion, a PE ratio of 22.20, a P/E/G ratio of 1.25 and a beta of 1.37.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, February 19th. The company reported $0.63 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.02. The company had revenue of $209.09 million during the quarter, compared to the consensus estimate of $239.07 million. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The business’s quarterly revenue was up 14.7% on a year-over-year basis. During the same period last year, the business earned $0.55 EPS. CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. As a group, sell-side analysts forecast that CarGurus, Inc. will post 1.41 earnings per share for the current fiscal year.

Insider Buying and Selling at CarGurus

In other news, insider Ismail Elshareef sold 1,645 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $32.21, for a total transaction of $52,985.45. Following the transaction, the insider owned 91,822 shares in the company, valued at $2,957,586.62. This represents a 1.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Jason Trevisan sold 16,548 shares of CarGurus stock in a transaction 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 completion of the sale, the chief executive officer directly owned 630,483 shares of the company’s stock, valued at approximately $24,601,446.66. The trade was a 2.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 29,003 shares of company stock valued at $1,118,494 over the last three months. 16.99% of the stock is owned by insiders.

Institutional Trading of CarGurus

Large investors have recently made changes to their positions in the stock. MAI Capital Management grew its stake in shares of CarGurus by 661.0% in the second quarter. MAI Capital Management now owns 1,172 shares of the company’s stock worth $39,000 after acquiring an additional 1,018 shares during the last quarter. Farther Finance Advisors LLC grew its position in CarGurus by 71.1% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,066 shares of the company’s stock worth $40,000 after purchasing an additional 443 shares during the last quarter. Brown Brothers Harriman & Co. acquired a new stake in CarGurus in the 3rd quarter worth $46,000. Torren Management LLC bought a new position in shares of CarGurus during the 4th quarter worth about $49,000. Finally, First Horizon Corp acquired a new position in shares of CarGurus during the third quarter valued at about $51,000. Institutional investors own 86.90% of the company’s stock.

About CarGurus

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.