CarGurus (NASDAQ:CARG) Stock Price Down 7% – Time to Sell?

CarGurus, Inc. (NASDAQ:CARG)’s share price dropped 7% during trading on Thursday. The company traded as low as $29.29 and last traded at $28.9880. Approximately 525,971 shares traded hands during trading, a decline of 57% from the average session volume of 1,232,689 shares. The stock had previously closed at $31.16.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a report on Friday, June 12th. Royal Bank Of Canada boosted their target price on CarGurus from $35.00 to $42.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. UBS Group increased their price target on shares of CarGurus from $37.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Barclays lifted their price objective on shares of CarGurus from $40.00 to $41.00 and gave the stock an “overweight” rating in a research note on Monday, August 10th. Finally, BTIG Research boosted their price objective on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, CarGurus has a consensus rating of “Moderate Buy” and a consensus target price of $40.75.

CarGurus Stock Down 6.3%

The company has a market capitalization of $2.60 billion, a P/E ratio of 15.92, a P/E/G ratio of 1.11 and a beta of 1.16. The firm has a fifty day simple moving average of $34.94 and a 200-day simple moving average of $33.63.

CarGurus (NASDAQ:CARG) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating 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 business had revenue of $250.97 million for the quarter, compared to analysts’ expectations of $249.85 million. During the same quarter in the previous year, the business posted $0.57 EPS. CarGurus’s revenue for the quarter was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, sell-side analysts predict that CarGurus, Inc. will post 2.17 earnings per share for the current fiscal year.

Insider Transactions at CarGurus

In related news, CMO Dafna Sarnoff sold 17,151 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $37.00, for a total transaction of $634,587.00. Following the sale, the chief marketing officer directly owned 109,668 shares in the company, valued at $4,057,716. This trade represents a 13.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Samuel Zales sold 10,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $34.62, for a total transaction of $346,200.00. Following the sale, the chief operating officer owned 455,349 shares in the company, valued at approximately $15,764,182.38. The trade was a 2.15% decrease in their ownership of the stock. 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 90 days, insiders have sold 54,456 shares of company stock valued at $1,981,734. 18.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CarGurus

A number of large investors have recently added to or reduced their stakes in CARG. Ritholtz Wealth Management lifted its holdings in shares of CarGurus by 4.2% in the first quarter. Ritholtz Wealth Management now owns 11,039 shares of the company’s stock valued at $376,000 after purchasing an additional 449 shares in the last quarter. Hennion & Walsh Asset Management Inc. grew its holdings in shares of CarGurus by 1.9% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 24,318 shares of the company’s stock worth $829,000 after buying an additional 459 shares in the last quarter. Aristides Capital LLC grew its holdings in shares of CarGurus by 11.6% during the first quarter. Aristides Capital LLC now owns 7,920 shares of the company’s stock worth $270,000 after buying an additional 825 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in CarGurus by 28.3% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,778 shares of the company’s stock valued at $129,000 after buying an additional 834 shares during the last quarter. Finally, State of Wyoming raised its position in CarGurus by 6.6% in the 1st quarter. State of Wyoming now owns 14,331 shares of the company’s stock valued at $488,000 after buying an additional 883 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

About CarGurus

CarGurus, Inc is a digital automotive marketplace that connects consumers with dealerships and private sellers offering new and used vehicles. Its platform enables shoppers to search vehicle listings, compare prices and features, review dealership information, and evaluate vehicle deals using data-driven tools. CarGurus generates revenue primarily by providing automotive dealers with listing, advertising, and other digital marketing services.

The company also offers products designed to help dealers attract shoppers, manage vehicle listings, and support the online and in-person vehicle-buying process.