CarGurus (NASDAQ:CARG) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded CarGurus from “hold” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $39.95.
• CarGurus recently exceeded quarterly expectations, reporting adjusted earnings of $0.66 per share versus the $0.61 consensus and revenue of $250.97 million, up 7.2% year over year.
• The stock opened at $32.18, with a market capitalization of approximately $2.87 billion; insiders have sold shares recently, while institutional investors own 86.90% of the company.

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

A number of other analysts have also recently weighed in on CARG. B. Riley Financial reaffirmed a "buy" rating on shares of CarGurus in a report on Friday, August 7th. Oppenheimer boosted their target price on shares of CarGurus from $38.00 to $44.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. Needham & Company LLC upped their target price 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. Weiss Ratings lowered shares of CarGurus from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 23rd. Finally, Barclays dropped their price target on shares of CarGurus from $41.00 to $38.00 and set an "overweight" rating on the stock in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $39.95.

CarGurus Price Performance

NASDAQ:CARG opened at $32.18 on Friday. The firm has a market capitalization of $2.87 billion, a P/E ratio of 15.78, a P/E/G ratio of 1.15 and a beta of 1.22. The business has a 50 day simple moving average of $32.35 and a 200 day simple moving average of $32.85. CarGurus has a 12-month low of $26.39 and a 12-month high of $41.22.

CarGurus (NASDAQ:CARG - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.05. The firm had revenue of $250.97 million for the quarter, compared to analyst estimates 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 last year, the company earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Research analysts anticipate that CarGurus will post 2.17 EPS for the current fiscal year.

Insiders Place Their Bets

In other CarGurus news, COO Samuel Zales sold 10,000 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $34.62, for a total transaction of $346,200.00. Following the completion of the sale, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 6,205 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $37.08, for a total transaction of $230,081.40. Following the completion of the sale, the general counsel owned 80,260 shares of the company's stock, valued at approximately $2,976,040.80. This trade represents a 7.18% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 78,187 shares of company stock worth $2,691,547. Corporate insiders own 18.19% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Public Employees Retirement System of Ohio bought a new stake in CarGurus during the second quarter worth approximately $43,000. Farther Finance Advisors LLC raised its position in shares of CarGurus by 107.5% in the third quarter. Farther Finance Advisors LLC now owns 1,531 shares of the company's stock valued at $48,000 after purchasing an additional 793 shares during the period. Signaturefd LLC raised its position in shares of CarGurus by 59.6% in the third quarter. Signaturefd LLC now owns 1,953 shares of the company's stock valued at $61,000 after purchasing an additional 729 shares during the period. Rockefeller Capital Management L.P. raised its position in shares of CarGurus by 356.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company's stock valued at $83,000 after purchasing an additional 1,697 shares during the period. Finally, Versant Capital Management Inc lifted its stake in shares of CarGurus by 20.2% in the third quarter. Versant Capital Management Inc now owns 2,325 shares of the company's stock worth $72,000 after buying an additional 391 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

CarGurus Company Profile

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 vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers.

The company also offers tools intended to support automotive retailers' online operations, including inventory merchandising, lead generation and digital retailing capabilities.

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