CarGurus, Inc. (NASDAQ:CARG) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts broadly rate CarGurus as a Hold. Among 13 analysts covering the stock, eight rate it Hold and five rate it Buy, with an average 12-month price target of about $38.23.
• Recent earnings topped expectations. CarGurus reported quarterly EPS of $0.58, beating estimates by $0.02, while revenue of $243.56 million also slightly exceeded forecasts and rose 8.2% year over year.
• Insiders sold shares, but institutional ownership remains high. Two executives sold stock under pre-arranged plans, and insiders own 17.2% of the company, while institutional investors hold 86.9% of shares.

Shares of CarGurus, Inc. (NASDAQ:CARG - Get Free Report) have received an average rating of "Hold" from the thirteen analysts that are presently covering the firm, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $38.2273.

A number of equities research analysts have issued reports on CARG shares. Royal Bank Of Canada raised their price target on shares of CarGurus from $34.00 to $35.00 and gave the stock an "outperform" rating in a report on Monday, May 11th. Wall Street Zen raised shares of CarGurus from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Needham & Company LLC raised their price target on shares of CarGurus from $37.00 to $43.00 and gave the stock a "buy" rating in a report on Friday, May 8th. JPMorgan Chase & Co. raised their price target on shares of CarGurus from $36.00 to $38.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Finally, UBS Group raised their price target on shares of CarGurus from $33.00 to $37.00 and gave the stock a "neutral" rating in a report on Friday, May 8th.

Insider Activity

In other news, CMO Dafna Sarnoff sold 5,445 shares of CarGurus stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the sale, the chief marketing officer owned 134,369 shares of the company's stock, valued at approximately $4,439,551.76. The trade was a 3.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Todd Quinn sold 4,341 shares of CarGurus stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $143,426.64. Following the sale, the chief technology officer directly owned 246,098 shares in the company, valued at $8,131,077.92. The trade was a 1.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,852 shares of company stock worth $431,053 in the last quarter. Insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On CarGurus

A number of large investors have recently modified their holdings of the stock. Horizon Investments LLC boosted its stake in shares of CarGurus by 2.0% during the 4th quarter. Horizon Investments LLC now owns 16,375 shares of the company's stock valued at $628,000 after purchasing an additional 318 shares in the last quarter. ProShare Advisors LLC boosted its stake in shares of CarGurus by 2.8% during the 4th quarter. ProShare Advisors LLC now owns 15,992 shares of the company's stock valued at $613,000 after purchasing an additional 436 shares in the last quarter. Ritholtz Wealth Management boosted its stake in shares of CarGurus by 4.2% during the 1st quarter. Ritholtz Wealth Management now owns 11,039 shares of the company's stock valued at $376,000 after purchasing an additional 449 shares in the last quarter. HighTower Advisors LLC boosted its stake in shares of CarGurus by 7.8% during the 4th quarter. HighTower Advisors LLC now owns 7,094 shares of the company's stock valued at $272,000 after purchasing an additional 514 shares in the last quarter. Finally, Illinois Municipal Retirement Fund boosted its stake in shares of CarGurus by 1.6% during the 4th quarter. Illinois Municipal Retirement Fund now owns 43,583 shares of the company's stock valued at $1,671,000 after purchasing an additional 679 shares in the last quarter. Institutional investors own 86.90% of the company's stock.

CarGurus Stock Performance

CARG stock opened at $28.39 on Wednesday. CarGurus has a 52 week low of $26.39 and a 52 week high of $39.42. The firm's fifty day moving average is $34.36 and its 200 day moving average is $34.35. The firm has a market cap of $2.56 billion, a P/E ratio of 18.68, a P/E/G ratio of 1.07 and a beta of 1.28.

CarGurus (NASDAQ:CARG - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. CarGurus had a net margin of 15.57% and a return on equity of 54.42%. The company had revenue of $243.56 million for the quarter, compared to analyst estimates of $243.10 million. During the same quarter last year, the firm earned $0.46 EPS. The firm's quarterly revenue was up 8.2% compared to the same quarter last year. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, analysts forecast that CarGurus will post 2.06 EPS for the current year.

About CarGurus

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.

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.