CarGurus (NASDAQ:CARG) Issues FY 2025 Earnings Guidance

CarGurus (NASDAQ:CARG) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 2.190-2.250 for the period, compared to the consensus estimate of 1.980. The company issued revenue guidance of -. CarGurus also updated its Q4 2025 guidance to 0.610-0.670 EPS.

CarGurus Stock Performance

Shares of CarGurus stock traded up $0.46 on Friday, reaching $33.59. The company had a trading volume of 537,311 shares, compared to its average volume of 1,043,075. The firm’s 50 day moving average price is $35.83 and its two-hundred day moving average price is $33.25. CarGurus has a 52-week low of $24.65 and a 52-week high of $41.33. The firm has a market cap of $3.33 billion, a PE ratio of 27.31, a PEG ratio of 1.62 and a beta of 1.50.

CarGurus (NASDAQ:CARG) last posted its earnings results on Thursday, August 7th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.03. CarGurus had a net margin of 14.12% and a return on equity of 36.23%. The firm had revenue of $234.03 million during the quarter, compared to the consensus estimate of $232.29 million. During the same quarter last year, the firm earned $0.41 EPS. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. As a group, sell-side analysts predict that CarGurus will post 1.41 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have issued reports on CARG shares. Zacks Research lowered shares of CarGurus from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 16th. Oppenheimer dropped their target price on CarGurus from $42.00 to $40.00 and set an “outperform” rating on the stock in a report on Tuesday, August 12th. UBS Group increased their price target on shares of CarGurus from $36.00 to $40.00 and gave the company a “neutral” rating in a research note on Monday, October 6th. JPMorgan Chase & Co. raised their price objective on shares of CarGurus from $38.00 to $43.00 and gave the stock a “neutral” rating in a report on Tuesday, October 14th. Finally, BTIG Research reissued a “buy” rating and issued a $39.00 price target on shares of CarGurus in a research report on Friday, September 5th. Five investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, CarGurus presently has a consensus rating of “Hold” and an average price target of $40.05.

Insider Activity

In related news, insider Jennifer Ladd Hanson sold 9,998 shares of the company’s stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $36.88, for a total value of $368,726.24. Following the sale, the insider owned 54,807 shares in the company, valued at $2,021,282.16. This represents a 15.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Ismail Elshareef sold 1,228 shares of CarGurus stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $34.98, for a total value of $42,955.44. Following the transaction, the insider directly owned 95,907 shares of the company’s stock, valued at approximately $3,354,826.86. This represents a 1.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 41,226 shares of company stock worth $1,471,482. Company insiders own 16.99% of the company’s stock.

Hedge Funds Weigh In On CarGurus

A number of large investors have recently modified their holdings of CARG. Squarepoint Ops LLC raised its holdings in CarGurus by 1,457.7% in the second quarter. Squarepoint Ops LLC now owns 403,447 shares of the company’s stock valued at $13,503,000 after acquiring an additional 377,547 shares in the last quarter. Cubist Systematic Strategies LLC increased its stake in shares of CarGurus by 328.9% in the second quarter. Cubist Systematic Strategies LLC now owns 278,789 shares of the company’s stock valued at $9,331,000 after purchasing an additional 213,789 shares during the period. Sei Investments Co. raised its holdings in shares of CarGurus by 102.0% during the second quarter. Sei Investments Co. now owns 331,767 shares of the company’s stock valued at $11,104,000 after buying an additional 167,514 shares during the last quarter. Select Equity Group L.P. raised its holdings in shares of CarGurus by 14.9% in the 2nd quarter. Select Equity Group L.P. now owns 1,050,244 shares of the company’s stock worth $35,152,000 after purchasing an additional 136,269 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in CarGurus by 6.9% during the second quarter. Invesco Ltd. now owns 1,717,321 shares of the company’s stock valued at $57,479,000 after purchasing an additional 110,452 shares during the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

CarGurus Company Profile

CarGurus, Inc operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers.