DA Davidson Has Lowered Expectations for CarGurus (NASDAQ:CARG) Stock Price

CarGurus (NASDAQ:CARG) had its price objective decreased by research analysts at DA Davidson from $37.50 to $33.50 in a research report issued on Friday,Benzinga reports. The firm presently has a “neutral” rating on the stock. DA Davidson’s price target indicates a potential upside of 14.73% from the company’s current price.

Other equities research analysts have also issued reports about the company. BTIG Research decreased their target price on CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research report on Friday. Weiss Ratings restated a “hold (c+)” rating on shares of CarGurus in a research note on Monday, December 29th. Jefferies Financial Group upped their price objective on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a research note on Thursday, December 11th. Needham & Company LLC cut their target price on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research report on Thursday, February 5th. Finally, Wall Street Zen lowered shares of CarGurus from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $39.23.

CarGurus Stock Performance

Shares of NASDAQ CARG opened at $29.20 on Friday. The firm has a market capitalization of $2.79 billion, a price-to-earnings ratio of 19.86, a PEG ratio of 1.06 and a beta of 1.35. The stock has a 50 day moving average price of $34.44 and a 200 day moving average price of $34.81. CarGurus has a 52-week low of $24.65 and a 52-week high of $39.42.

Insider Buying and Selling at CarGurus

In other news, CEO Jason Trevisan sold 16,548 shares of the firm’s stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $39.02, for a total value of $645,702.96. Following the sale, the chief executive officer directly owned 630,483 shares in the company, valued at approximately $24,601,446.66. This trade represents a 2.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Ismail Elshareef sold 1,645 shares of CarGurus stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $32.21, for a total transaction of $52,985.45. Following the completion of the transaction, the insider directly owned 91,822 shares in the company, valued at approximately $2,957,586.62. The trade was a 1.76% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 49,003 shares of company stock valued at $1,858,494. 16.99% of the stock is currently owned by insiders.

Institutional Trading of CarGurus

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Invesco Ltd. grew its stake in CarGurus by 1.5% during the 4th quarter. Invesco Ltd. now owns 1,702,402 shares of the company’s stock worth $65,287,000 after buying an additional 24,788 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in CarGurus by 35.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 12,936 shares of the company’s stock valued at $496,000 after buying an additional 3,385 shares during the last quarter. Vident Advisory LLC boosted its holdings in CarGurus by 1.4% in the fourth quarter. Vident Advisory LLC now owns 155,205 shares of the company’s stock worth $5,952,000 after acquiring an additional 2,207 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of CarGurus during the fourth quarter worth about $900,000. Finally, Kensington Investment Counsel LLC purchased a new stake in shares of CarGurus during the fourth quarter worth about $1,182,000. Hedge funds and other institutional investors own 86.90% of the company’s stock.

More CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 results topped expectations: GAAP and non‑GAAP metrics showed strength (EPS $0.63 vs. $0.61 consensus; revenue +14.7% YoY; strong margins and ROE), signaling continued operating leverage. This is the primary near‑term earnings catalyst. Article Title
• Positive Sentiment: Management announced strong full‑year results (FY net income and adjusted EBITDA up significantly) and a new $250M share repurchase program after ~$350M repurchased in 2025 — supports EPS accretion and buyback-driven demand for the stock. Article Title
• Positive Sentiment: Revenue guidance is above Street expectations for Q1 and FY2026 (Q1: $240.5–$245.5M vs. $238.8M consensus; FY revenue raised to ~$998M–$1.0B vs. $970.9M consensus), suggesting demand resilience in the core marketplace. Article Title
• Positive Sentiment: Analysts and coverage note accelerating AI adoption and product innovation as a growth driver — a narrative that can support multiple expansion if execution continues. Article Title
• Neutral Sentiment: Short interest reporting is noisy/ambiguous in recent feeds (appears as zero in the summary), so there’s no clear short‑squeeze signal or fresh bearish positioning from that data set. Article Title
• Negative Sentiment: Q1 EPS guidance was set at $0.520–$0.580 versus consensus $0.560 — midpoint slightly below Street, which tempers the beat and may keep some investors cautious on near‑term EPS trajectory. Article Title
• Negative Sentiment: An alleged data breach (reportedly ~1.7M records) raises reputational, operational and potential regulatory risk — a headline risk investors will watch for follow‑up details and remediation. Article Title

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.