CarGurus (NASDAQ:CARG) Earns Hold (C) Rating from Weiss Ratings

Key Points

• CarGurus' stock has been restated with a "hold (c)" rating by Weiss Ratings, while consensus ratings reflect a "Moderate Buy" with a price target of $38.79.
• The company's quarterly earnings report showed an EPS of $0.57, exceeding analysts' estimates, and a 7% revenue increase compared to the previous year.
• Recent insider trading saw key executives selling shares, with Control Management adjusting its stake significantly—17.20% of CarGurus' stock is owned by insiders.

CarGurus (NASDAQ:CARG - Get Free Report)'s stock had its "hold (c)" rating restated by research analysts at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

CARG has been the subject of a number of other research reports. Wall Street Zen cut shares of CarGurus from a "strong-buy" rating to a "buy" rating in a research note on Friday, September 5th. Citigroup dropped their price objective on shares of CarGurus from $40.00 to $37.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. JMP Securities restated a "market perform" rating and issued a $38.00 price objective on shares of CarGurus in a research note on Wednesday, July 2nd. Citizens Jmp cut shares of CarGurus from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 2nd. Finally, Needham & Company LLC increased their target price on shares of CarGurus from $39.00 to $44.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, CarGurus presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.79.

CarGurus Trading Down 2.1%

CARG traded down $0.73 during midday trading on Wednesday, reaching $34.77. The company's stock had a trading volume of 945,740 shares, compared to its average volume of 1,063,817. The company has a fifty day simple moving average of $34.68 and a 200 day simple moving average of $32.19. The stock has a market cap of $3.45 billion, a P/E ratio of 28.27, a PEG ratio of 1.72 and a beta of 1.52. CarGurus has a twelve month low of $24.65 and a twelve month high of $41.33.

CarGurus (NASDAQ:CARG - Get Free Report) last issued its quarterly 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 company had revenue of $234.03 million during the quarter, compared to analyst estimates of $232.29 million. CarGurus had a return on equity of 36.23% and a net margin of 14.12%.The company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period 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. Sell-side analysts expect that CarGurus will post 1.41 earnings per share for the current year.

Insider Activity

In other news, insider Jennifer Ladd Hanson sold 9,998 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $36.88, for a total value of $368,726.24. Following the completion of the sale, the insider owned 54,807 shares of the company's stock, valued at approximately $2,021,282.16. The trade was a 15.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Zachary Emerson Hallowell sold 1,733 shares of the stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $33.84, for a total value of $58,644.72. Following the completion of the sale, the chief executive officer owned 117,045 shares of the company's stock, valued at $3,960,802.80. The trade was a 1.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 39,210 shares of company stock valued at $1,388,736. 17.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On CarGurus

Several large investors have recently made changes to their positions in the business. Assenagon Asset Management S.A. boosted its stake in CarGurus by 77.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 224,225 shares of the company's stock worth $8,348,000 after purchasing an additional 97,739 shares during the period. GAMMA Investing LLC increased its stake in CarGurus by 8.7% in the 3rd quarter. GAMMA Investing LLC now owns 4,535 shares of the company's stock worth $169,000 after purchasing an additional 363 shares during the period. Osaic Holdings Inc. increased its stake in CarGurus by 335.4% in the 2nd quarter. Osaic Holdings Inc. now owns 14,264 shares of the company's stock worth $477,000 after purchasing an additional 10,988 shares during the period. Orion Porfolio Solutions LLC bought a new stake in shares of CarGurus in the 2nd quarter worth approximately $206,000. Finally, Neuberger Berman Group LLC bought a new stake in shares of CarGurus in the 2nd quarter worth approximately $216,000. 86.90% of the stock is owned by hedge funds and other 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.

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