CarGurus (NASDAQ:CARG) Shares Down 5.9% – Here’s Why

CarGurus, Inc. (NASDAQ:CARG) traded down 5.9% during mid-day trading on Tuesday . The stock traded as low as $35.91 and last traded at $36.4140. 383,064 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 699,767 shares. The stock had previously closed at $38.71.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CARG. Wall Street Zen downgraded CarGurus from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. UBS Group boosted their price target on CarGurus from $36.00 to $40.00 and gave the stock a “neutral” rating in a report on Monday, October 6th. DA Davidson set a $37.50 price objective on CarGurus in a research report on Monday, November 17th. Citigroup raised their price target on shares of CarGurus from $37.00 to $41.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Finally, Zacks Research downgraded shares of CarGurus from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 16th. Five research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, CarGurus currently has an average rating of “Hold” and a consensus price target of $40.86.

CarGurus Stock Performance

The stock has a fifty day moving average price of $36.70 and a 200-day moving average price of $35.28. The firm has a market cap of $3.47 billion, a PE ratio of 24.71, a PEG ratio of 1.58 and a beta of 1.36.

CarGurus (NASDAQ:CARG) last released its quarterly earnings results on Thursday, November 6th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.55 by $0.02. The firm had revenue of $238.70 million for the quarter, compared to analyst estimates of $234.57 million. CarGurus had a return on equity of 41.31% and a net margin of 16.41%.CarGurus’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.45 EPS. CarGurus has set its FY 2025 guidance at 2.190-2.250 EPS and its Q4 2025 guidance at 0.610-0.670 EPS. As a group, equities analysts predict that CarGurus, Inc. will post 1.41 earnings per share for the current fiscal year.

Insider Activity at CarGurus

In other news, insider Ismail Elshareef sold 1,228 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $34.98, for a total value of $42,955.44. Following the sale, the insider owned 95,907 shares in the company, valued at approximately $3,354,826.86. This represents a 1.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Samuel Zales sold 10,000 shares of the business’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the chief operating officer directly owned 410,259 shares of the company’s stock, valued at approximately $14,350,859.82. This represents a 2.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 68,586 shares of company stock worth $2,547,464 over the last quarter. Company insiders own 17.20% of the company’s stock.

Institutional Trading of CarGurus

Hedge funds have recently bought and sold shares of the company. Congress Asset Management Co. increased its position in CarGurus by 2.9% in the 4th quarter. Congress Asset Management Co. now owns 1,958,144 shares of the company’s stock valued at $75,095,000 after acquiring an additional 54,937 shares during the period. SG Americas Securities LLC grew its stake in shares of CarGurus by 61.6% in the fourth quarter. SG Americas Securities LLC now owns 38,812 shares of the company’s stock worth $1,488,000 after purchasing an additional 14,788 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in shares of CarGurus by 35.2% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 7,867 shares of the company’s stock valued at $303,000 after purchasing an additional 2,049 shares in the last quarter. Occidental Asset Management LLC acquired a new stake in CarGurus in the fourth quarter worth about $307,000. Finally, GAMMA Investing LLC lifted its holdings in CarGurus by 22.3% in the fourth quarter. GAMMA Investing LLC now owns 5,547 shares of the company’s stock worth $213,000 after purchasing an additional 1,012 shares during the period. 86.90% of the stock is currently owned by institutional investors.

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.