CarGurus (NASDAQ:CARG) Shares Down 5.3% – What’s Next?

CarGurus, Inc. (NASDAQ:CARG)’s share price was down 5.3% on Tuesday . The stock traded as low as $31.42 and last traded at $31.4110. Approximately 512,816 shares were traded during trading, a decline of 58% from the average daily volume of 1,221,052 shares. The stock had previously closed at $33.17.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Barclays increased their target price on shares of CarGurus from $40.00 to $41.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Weiss Ratings upgraded shares of CarGurus from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, August 21st. Needham & Company LLC raised their price objective on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Freedom Capital upgraded CarGurus to a “strong-buy” rating in a report on Friday, June 12th. Finally, Citigroup boosted their target price on CarGurus from $32.00 to $39.00 and gave the company a “neutral” rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $40.75.

CarGurus Stock Down 4.3%

The stock’s fifty day moving average price is $35.33 and its 200-day moving average price is $33.67. The company has a market capitalization of $2.72 billion, a price-to-earnings ratio of 16.61, a P/E/G ratio of 1.13 and a beta of 1.16.

CarGurus (NASDAQ:CARG) last released its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.05. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The business had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. During the same quarter last year, the firm earned $0.57 earnings per share. The firm’s revenue for the quarter was up 7.2% compared to the same quarter last year. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Analysts anticipate that CarGurus, Inc. will post 2.17 EPS for the current year.

Insider Buying and Selling at CarGurus

In related news, COO Samuel Zales sold 10,000 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief operating officer directly owned 455,349 shares of the company’s stock, valued at approximately $15,764,182.38. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jason Trevisan sold 1,100 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $41.06, for a total value of $45,166.00. Following the completion of the transaction, the chief executive officer owned 674,762 shares of the company’s stock, valued at approximately $27,705,727.72. This represents a 0.16% 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 71,943 shares of company stock valued at $2,584,936 in the last ninety days. Insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On CarGurus

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lazard Asset Management LLC lifted its stake in shares of CarGurus by 180.8% during the 1st quarter. Lazard Asset Management LLC now owns 445,868 shares of the company’s stock worth $15,182,000 after buying an additional 287,067 shares during the last quarter. Bank of America Corp DE grew its stake in CarGurus by 26.6% in the 1st quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock valued at $19,965,000 after buying an additional 123,364 shares during the last quarter. Louisiana State Employees Retirement System bought a new position in CarGurus in the 1st quarter valued at about $1,226,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in CarGurus during the first quarter worth approximately $3,487,000. Finally, Principal Financial Group Inc. lifted its position in CarGurus by 19.1% during the first quarter. Principal Financial Group Inc. now owns 573,406 shares of the company’s stock worth $19,524,000 after acquiring an additional 91,755 shares during the last quarter. 86.90% of the stock is owned by institutional investors.

About CarGurus

CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate pricing and vehicle details, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital advertising and marketing products designed to help them display inventory and reach prospective buyers.

The company also provides tools and services intended to support automotive retailers throughout the vehicle-shopping process, including inventory merchandising, lead generation, pricing insights and digital retail capabilities.