CarGurus (NASDAQ:CARG) Price Target Cut to $35.00 by Analysts at UBS Group

Key Points

• UBS cut CarGurus’ price target to $35 from $40 while maintaining a “neutral” rating, implying approximately 21.65% upside from the reported share price of $28.77.
• Analyst sentiment remains favorable overall, with a consensus “Moderate Buy” rating and average price target of $39.95, despite mixed recent target adjustments.
• CarGurus exceeded quarterly expectations, reporting $0.66 in EPS versus $0.61 expected and $250.97 million in revenue; revenue increased 7.2% year over year.

CarGurus (NASDAQ:CARG - Get Free Report) had its price target dropped by equities research analysts at UBS Group from $40.00 to $35.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential upside of 21.65% from the stock's current price.

A number of other research firms also recently commented on CARG. Piper Sandler reiterated a "sector weight" rating on shares of CarGurus in a research report on Friday, June 12th. Needham & Company LLC upped their price target on shares of CarGurus from $43.00 to $44.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Barclays lowered their price objective on shares of CarGurus from $41.00 to $38.00 and set an "overweight" rating for the company in a research report on Tuesday. Royal Bank Of Canada lifted their price objective on shares of CarGurus from $35.00 to $42.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Finally, Wall Street Zen downgraded shares of CarGurus from a "buy" rating to a "hold" rating in a report on Saturday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $39.95.

CarGurus Price Performance

Shares of CarGurus stock traded up $0.04 during trading on Wednesday, reaching $28.77. 2,403,873 shares of the stock traded hands, compared to its average volume of 1,260,384. CarGurus has a 52-week low of $26.39 and a 52-week high of $41.22. The business has a fifty day simple moving average of $34.54 and a two-hundred day simple moving average of $33.54. The company has a market capitalization of $2.56 billion, a price-to-earnings ratio of 15.64, a P/E/G ratio of 1.04 and a beta of 1.22.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.05. The company had revenue of $250.97 million for the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The firm's revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, research analysts predict that CarGurus will post 2.17 earnings per share for the current fiscal year.

Insider Buying and Selling at CarGurus

In other news, COO Samuel Zales sold 10,000 shares of the firm's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $34.62, for a total value of $346,200.00. Following the completion of the sale, the chief operating officer owned 455,349 shares in the company, valued at approximately $15,764,182.38. This trade represents a 2.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 17,151 shares of CarGurus stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $37.00, for a total transaction of $634,587.00. Following the transaction, the chief marketing officer directly owned 109,668 shares of the company's stock, valued at approximately $4,057,716. This represents a 13.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 68,187 shares of company stock valued at $2,388,447. Insiders own 18.19% of the company's stock.

Hedge Funds Weigh In On CarGurus

A number of large investors have recently bought and sold shares of CARG. Lazard Asset Management LLC lifted its holdings in CarGurus by 180.8% during the 1st quarter. Lazard Asset Management LLC now owns 445,868 shares of the company's stock valued at $15,182,000 after buying an additional 287,067 shares in 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 worth $19,965,000 after acquiring an additional 123,364 shares in the last quarter. RFG Advisory LLC purchased a new position in shares of CarGurus during the second quarter worth approximately $1,421,000. Louisiana State Employees Retirement System purchased a new position in shares of CarGurus during the first quarter worth approximately $1,226,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of CarGurus during the second quarter valued at approximately $15,631,000. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.