CarGurus (NASDAQ:CARG) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of CarGurus (NASDAQ:CARG) from a hold rating to a buy rating in a research note published on Saturday.

Several other research analysts also recently commented on the company. UBS Group lifted their target price on CarGurus from $37.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Royal Bank Of Canada increased their price target on CarGurus from $35.00 to $42.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. BTIG Research raised their price objective on CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Needham & Company LLC upped their target price on CarGurus from $43.00 to $44.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, Piper Sandler reissued a “sector weight” rating on shares of CarGurus in a research report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, CarGurus currently has an average rating of “Moderate Buy” and a consensus price target of $40.75.

CarGurus Price Performance

CARG opened at $37.21 on Friday. CarGurus has a fifty-two week low of $26.39 and a fifty-two week high of $41.22. The firm has a market capitalization of $3.31 billion, a price-to-earnings ratio of 20.22, a PEG ratio of 1.31 and a beta of 1.17. The company’s 50 day moving average price is $34.83 and its two-hundred day moving average price is $32.93.

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, beating the consensus estimate of $0.61 by $0.05. The firm had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The company’s revenue for the quarter 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 predict that CarGurus will post 2.17 EPS for the current year.

Insider Activity

In related news, CEO Jason Trevisan sold 1,100 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $41.06, for a total transaction of $45,166.00. Following the sale, the chief executive officer owned 674,762 shares in the company, valued at $27,705,727.72. This represents a 0.16% decrease in their position. The sale was disclosed in a document filed 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, Director Greg M. Schwartz sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $36.07, for a total value of $360,700.00. Following the sale, the director directly owned 8,716 shares of the company’s stock, valued at $314,386.12. This represents a 53.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 60,015 shares of company stock worth $2,112,102. 18.19% of the stock is owned by insiders.

Hedge Funds Weigh In On CarGurus

A number of institutional investors and hedge funds have recently modified their holdings of the business. Convergence Investment Partners LLC purchased a new stake in CarGurus in the fourth quarter worth $3,742,000. AEGON ASSET MANAGEMENT UK Plc purchased a new position in shares of CarGurus during the 4th quarter valued at $2,113,000. Westover Capital Advisors LLC purchased a new position in shares of CarGurus during the 4th quarter valued at $1,912,000. Louisiana State Employees Retirement System bought a new position in shares of CarGurus during the 1st quarter worth $1,226,000. Finally, Bank of America Corp DE increased its holdings in CarGurus by 26.6% in the 1st quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock worth $19,965,000 after acquiring an additional 123,364 shares during the last quarter. 86.90% of the stock is currently owned by institutional investors.

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.