CarGurus, Inc. (NASDAQ:CARG) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• CarGurus, Inc. has received a consensus recommendation of "Hold" from 13 analysts, with 7 holding the stock and 6 giving it a buy rating. The average 12-month target price is $38.46.
• In its latest earnings report, CarGurus reported an EPS of $0.57, exceeding estimates, with a revenue of $234.03 million, marking a 7% year-over-year increase.
• Insider trading activity includes CEO Zachary Emerson Hallowell selling 1,733 shares, while institutional investors hold a substantial 86.90% of the company's stock.

Shares of CarGurus, Inc. (NASDAQ:CARG - Get Free Report) have received a consensus recommendation of "Hold" from the thirteen analysts that are currently covering the stock, MarketBeat Ratings reports. Seven equities research analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $38.4583.

Several equities analysts have recently weighed in on the stock. JMP Securities reissued a "market perform" rating and issued a $38.00 price target on shares of CarGurus in a research note on Wednesday, July 2nd. BTIG Research reiterated a "buy" rating and issued a $39.00 price objective on shares of CarGurus in a report on Friday, September 5th. Wall Street Zen lowered shares of CarGurus from a "strong-buy" rating to a "buy" rating in a research note on Friday, September 5th. Citigroup dropped their price target on CarGurus from $40.00 to $37.00 and set a "neutral" rating for the company in a research report on Thursday, July 3rd. Finally, Needham & Company LLC increased their price target on CarGurus from $39.00 to $44.00 and gave the company a "buy" rating in a report on Friday, August 8th.

CarGurus Stock Performance

NASDAQ:CARG opened at $36.29 on Friday. The stock has a market capitalization of $3.60 billion, a PE ratio of 29.50, a P/E/G ratio of 1.68 and a beta of 1.54. CarGurus has a fifty-two week low of $24.65 and a fifty-two week high of $41.33. The company has a fifty day moving average of $33.43 and a two-hundred day moving average of $31.42.

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

Insiders Place Their Bets

In related news, CEO Zachary Emerson Hallowell sold 1,733 shares of the firm's stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $33.84, for a total transaction of $58,644.72. Following the completion of the sale, the chief executive officer directly owned 117,045 shares in the company, valued at approximately $3,960,802.80. This trade represents a 1.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Matthew Todd Quinn sold 3,789 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $33.09, for a total transaction of $125,378.01. Following the completion of the transaction, the chief technology officer owned 216,877 shares in the company, valued at $7,176,459.93. The trade was a 1.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 31,538 shares of company stock worth $1,067,077. 16.99% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CarGurus

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mercer Global Advisors Inc. ADV acquired a new stake in CarGurus in the 4th quarter valued at approximately $234,000. Ameriprise Financial Inc. boosted its position in CarGurus by 3.1% in the 4th quarter. Ameriprise Financial Inc. now owns 316,284 shares of the company's stock valued at $11,557,000 after buying an additional 9,401 shares during the period. Cetera Investment Advisers acquired a new position in shares of CarGurus in the fourth quarter worth $321,000. D. E. Shaw & Co. Inc. grew its stake in shares of CarGurus by 96.1% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 191,140 shares of the company's stock worth $6,984,000 after acquiring an additional 93,646 shares in the last quarter. Finally, Deutsche Bank AG increased its position in shares of CarGurus by 56.6% during the fourth quarter. Deutsche Bank AG now owns 87,510 shares of the company's stock worth $3,198,000 after acquiring an additional 31,636 shares during the period. Institutional investors and hedge funds own 86.90% of the company's stock.

CarGurus Company Profile

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.

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