CarGurus (NASDAQ:CARG) Earns "Buy" Rating from BTIG Research

Key Points

• BTIG Research has reaffirmed a buy rating for CarGurus (NASDAQ:CARG) with a price target of $39.00, indicating a potential upside of 7.85% from the current stock price.
• CarGurus reported earnings per share (EPS) of $0.57 for the last quarter, exceeding analysts' expectations of $0.54, with revenue increasing by 7.0% compared to the previous year.
• Insider trading activity saw significant sales, including CEO Zachary Emerson Hallowell selling shares valued at approximately $58,644, alongside other insiders reducing their stakes in the company.

CarGurus (NASDAQ:CARG - Get Free Report)'s stock had its "buy" rating restated by BTIG Research in a research note issued on Friday, September 5th,Benzinga reports. They currently have a $39.00 target price on the stock. BTIG Research's target price would suggest a potential upside of 8.24% from the stock's current price.

Several other equities research analysts also recently commented on CARG. UBS Group boosted their target price on shares of CarGurus from $33.00 to $36.00 and gave the company a "neutral" rating in a research note on Friday, August 8th. Gordon Haskett began coverage on shares of CarGurus in a research note on Monday, July 14th. They issued a "hold" rating and a $35.00 target price on the stock. Wall Street Zen downgraded shares of CarGurus from a "strong-buy" rating to a "buy" rating in a research note on Friday, September 5th. Royal Bank Of Canada restated an "outperform" rating and issued a $42.00 target price on shares of CarGurus in a research note on Monday, May 12th. Finally, JMP Securities restated a "market perform" rating and issued a $38.00 target price on shares of CarGurus in a research note on Wednesday, July 2nd. Six research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $38.46.

CarGurus Stock Down 0.7%

CARG traded down $0.26 during trading on Friday, reaching $36.03. 661,179 shares of the company's stock were exchanged, compared to its average volume of 1,003,189. CarGurus has a fifty-two week low of $24.65 and a fifty-two week high of $41.33. The business has a 50 day moving average price of $33.48 and a 200 day moving average price of $31.45. The company has a market capitalization of $3.58 billion, a P/E ratio of 29.29, a PEG ratio of 1.72 and a beta of 1.54.

CarGurus (NASDAQ:CARG - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.54 by $0.03. CarGurus had a net margin of 14.12% and a return on equity of 36.23%. The company had revenue of $234.03 million for the quarter, compared to the consensus estimate of $232.29 million. During the same quarter in the previous year, the company earned $0.41 EPS. The firm's revenue for the quarter was up 7.0% compared to the same quarter last year. CarGurus has set its Q3 2025 guidance at 0.500-0.580 EPS. As a group, research analysts forecast that CarGurus will post 1.41 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Matthew Todd Quinn sold 3,789 shares of CarGurus stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $33.09, for a total value of $125,378.01. Following the completion of the transaction, the chief technology officer directly owned 216,877 shares of the company's stock, valued at $7,176,459.93. The trade was a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Zachary Emerson Hallowell sold 4,369 shares of CarGurus stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $33.09, for a total value of $144,570.21. Following the completion of the transaction, the chief executive officer directly owned 121,584 shares of the company's stock, valued at $4,023,214.56. This represents a 3.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 31,538 shares of company stock valued at $1,067,077 over the last three months. Company insiders own 16.99% of the company's stock.

Institutional Trading of CarGurus

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in CarGurus during the 2nd quarter worth about $27,000. Private Wealth Asset Management LLC bought a new stake in CarGurus during the 2nd quarter worth about $29,000. MAI Capital Management raised its holdings in CarGurus by 661.0% during the 2nd quarter. MAI Capital Management now owns 1,172 shares of the company's stock worth $39,000 after purchasing an additional 1,018 shares during the last quarter. Fifth Third Bancorp raised its holdings in CarGurus by 121.7% during the 2nd quarter. Fifth Third Bancorp now owns 1,419 shares of the company's stock worth $47,000 after purchasing an additional 779 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new stake in CarGurus during the 1st quarter worth about $46,000. 86.90% of the stock is owned by institutional investors.

About CarGurus

CarGurus, Inc operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers.