CarGurus (NASDAQ:CARG) Shares Down 6% – Should You Sell?

CarGurus, Inc. (NASDAQ:CARG) shares traded down 6% on Monday . The company traded as low as $36.88 and last traded at $36.6570. 95,946 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 1,283,452 shares. The stock had previously closed at $38.99.

Wall Street Analysts Forecast Growth

Several research firms recently commented on CARG. B. Riley Financial restated a “buy” rating on shares of CarGurus in a report on Friday. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a research note on Friday, June 12th. Freedom Capital upgraded shares of CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. Royal Bank Of Canada lifted their target price on shares of CarGurus from $35.00 to $42.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Barclays boosted their price target on shares of CarGurus from $40.00 to $41.00 and gave the company an “overweight” rating in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $40.35.

CarGurus Price Performance

The company has a fifty day simple moving average of $33.15 and a two-hundred day simple moving average of $32.69. The company has a market capitalization of $3.26 billion, a P/E ratio of 19.66, a price-to-earnings-growth ratio of 1.37 and a beta of 1.17.

CarGurus (NASDAQ:CARG) last released its quarterly earnings results 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. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The company had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. During the same quarter in the prior year, the company posted $0.57 EPS. The firm’s revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Equities analysts anticipate that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Insider Activity

In other CarGurus news, General Counsel Javier Zamora sold 6,205 shares of the business’s stock in a transaction 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 of the company’s stock, valued at $2,976,040.80. The trade was a 7.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Todd Quinn sold 3,824 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total value of $133,954.72. Following the completion of the sale, the chief technology officer directly owned 233,146 shares in the company, valued at approximately $8,167,104.38. This represents a 1.61% decrease in their ownership of the stock. 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 32,864 shares of company stock valued at $1,116,815 over the last three months. Corporate insiders own 18.19% of the company’s stock.

Institutional Trading of CarGurus

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in shares of CarGurus by 22.6% during the first quarter. Royal Bank of Canada now owns 75,072 shares of the company’s stock worth $2,186,000 after buying an additional 13,834 shares during the last quarter. AQR Capital Management LLC increased its position in CarGurus by 25.4% during the first quarter. AQR Capital Management LLC now owns 25,946 shares of the company’s stock worth $756,000 after acquiring an additional 5,259 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in CarGurus by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,845 shares of the company’s stock valued at $1,889,000 after purchasing an additional 1,890 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of CarGurus by 113.0% during the 1st quarter. Jane Street Group LLC now owns 123,305 shares of the company’s stock worth $3,592,000 after purchasing an additional 65,420 shares during the period. Finally, Quantbot Technologies LP acquired a new position in shares of CarGurus during the second quarter valued at about $87,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.