CarGurus (NASDAQ:CARG) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded CarGurus from “buy” to “hold,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $40.75.
• CarGurus exceeded quarterly expectations, reporting $0.66 in EPS versus the $0.61 consensus and $250.97 million in revenue, up 7.2% year over year.
• Insiders sold 54,456 shares worth approximately $1.98 million over the past 90 days, while institutional investors and hedge funds own a substantial 86.9% of the stock.

CarGurus (NASDAQ:CARG - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on CARG. BTIG Research lifted their target price on CarGurus from $40.00 to $41.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Royal Bank Of Canada raised their price target on shares of CarGurus from $35.00 to $42.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Needham & Company LLC lifted their price objective on shares of CarGurus from $43.00 to $44.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Oppenheimer boosted their price objective on shares of CarGurus from $38.00 to $44.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings raised shares of CarGurus from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $40.75.

CarGurus Price Performance

Shares of NASDAQ CARG opened at $30.02 on Friday. CarGurus has a 1-year low of $26.39 and a 1-year high of $41.22. The business's 50 day moving average is $34.80 and its two-hundred day moving average is $33.59. The stock has a market capitalization of $2.67 billion, a P/E ratio of 16.32, a PEG ratio of 1.06 and a beta of 1.22.

CarGurus (NASDAQ:CARG - Get Free Report) last announced 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 firm had revenue of $250.97 million during the quarter, compared to analysts' expectations of $249.85 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The company's quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, equities research analysts anticipate that CarGurus will post 2.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other CarGurus news, Director Greg Schwartz sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $36.07, for a total transaction of $360,700.00. Following the sale, the director owned 8,716 shares of the company's stock, valued at approximately $314,386.12. The trade was a 53.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Jason Trevisan sold 1,100 shares of the company'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 transaction of $45,166.00. Following the transaction, the chief executive officer owned 674,762 shares in the company, valued at $27,705,727.72. The trade was a 0.16% decrease in their position. 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. Insiders sold 54,456 shares of company stock worth $1,981,734 over the last ninety days. Company insiders own 18.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of CARG. Bank of New York Mellon Corp purchased a new stake in shares of CarGurus in the second quarter worth about $15,631,000. Pale Fire Capital SE acquired a new position in CarGurus in the second quarter valued at approximately $13,112,000. Lazard Asset Management LLC boosted its position in CarGurus by 180.8% in the 1st quarter. Lazard Asset Management LLC now owns 445,868 shares of the company's stock worth $15,182,000 after purchasing an additional 287,067 shares in the last quarter. Prevatt Capital Ltd grew its stake in shares of CarGurus by 12.5% during the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company's stock worth $84,274,000 after purchasing an additional 275,000 shares during the period. Finally, Pacer Advisors Inc. grew its stake in shares of CarGurus by 5,046.6% during the 4th quarter. Pacer Advisors Inc. now owns 260,727 shares of the company's stock worth $9,999,000 after purchasing an additional 255,661 shares during the period. 86.90% of the stock is owned by institutional investors and hedge funds.

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.

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