CarGurus (NASDAQ:CARG) Raised to Strong-Buy at Freedom Capital

CarGurus (NASDAQ:CARG) was upgraded by analysts at Freedom Capital to a “strong-buy” rating in a report released on Friday,Zacks.com reports.

A number of other equities analysts have also recently issued reports on CARG. Citigroup initiated coverage on shares of CarGurus in a research note on Friday. They issued a “buy” rating for the company. Royal Bank Of Canada lifted their target price on shares of CarGurus from $34.00 to $35.00 and gave the company an “outperform” rating in a research report on Monday, May 11th. BTIG Research lowered their target price on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. JPMorgan Chase & Co. raised their price target on shares of CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research note on Friday, May 8th. Finally, Oppenheimer cut their price target on shares of CarGurus from $40.00 to $38.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. One analyst has rated the stock with a Strong Buy rating, seven have given 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 an average rating of “Moderate Buy” and an average target price of $37.79.

CarGurus Trading Down 1.8%

CARG opened at $27.17 on Friday. The stock has a market cap of $2.45 billion, a PE ratio of 17.88, a P/E/G ratio of 1.01 and a beta of 1.20. CarGurus has a 1 year low of $26.39 and a 1 year high of $39.42. The stock’s 50 day simple moving average is $32.45 and its 200-day simple moving average is $33.55.

CarGurus (NASDAQ:CARG) last issued its earnings results on Thursday, May 7th. The company reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $243.56 million during the quarter, compared to analyst estimates of $243.10 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.CarGurus’s revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.46 earnings per share. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Equities analysts forecast that CarGurus will post 2.11 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Matthew Todd Quinn sold 4,341 shares of CarGurus stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $143,426.64. Following the transaction, the chief technology officer directly owned 246,098 shares of the company’s stock, valued at $8,131,077.92. This trade represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through 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 company’s stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the completion of the sale, the chief marketing officer owned 134,369 shares of the company’s stock, valued at approximately $4,439,551.76. This represents a 3.89% 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. Insiders have sold a total of 20,924 shares of company stock worth $669,419 in the last ninety days. Company insiders own 16.99% of the company’s stock.

Hedge Funds Weigh In On CarGurus

Several institutional investors and hedge funds have recently modified their holdings of CARG. Brown Brothers Harriman & Co. acquired a new stake in CarGurus during the 3rd quarter worth approximately $46,000. Torren Management LLC bought a new position in CarGurus in the fourth quarter valued at approximately $49,000. EverSource Wealth Advisors LLC boosted its holdings in shares of CarGurus by 491.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after buying an additional 1,362 shares during the period. Clearstead Advisors LLC boosted its holdings in shares of CarGurus by 321.2% in the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company’s stock valued at $82,000 after buying an additional 1,622 shares during the period. Finally, Rockefeller Capital Management L.P. increased its position in shares of CarGurus by 356.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock worth $83,000 after acquiring an additional 1,697 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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.