CarGurus (NASDAQ:CARG) Issues Q3 2025 Earnings Guidance

Key Points

• CarGurus has updated its Q3 2025 earnings guidance, projecting an earnings per share range of 0.500 to 0.580, slightly above the consensus estimate of 0.546.
• Shares of CarGurus traded down by 1.3% to reach $31.41, with a total of 1,954,510 shares exchanged compared to an average volume of 812,560.
• Recent analyst ratings reflect a mixed sentiment, with a consensus rating of "Hold" and an average price target of $37.63, as several firms recently adjusted their targets for the stock.

CarGurus (NASDAQ:CARG - Get Free Report) updated its third quarter 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 0.500-0.580 for the period, compared to the consensus earnings per share estimate of 0.546. The company issued revenue guidance of -.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Gordon Haskett initiated coverage on shares of CarGurus in a research report on Monday, July 14th. They set a "hold" rating and a $35.00 target price on the stock. Citigroup dropped their target price on CarGurus from $40.00 to $37.00 and set a "neutral" rating for the company in a research report on Thursday, July 3rd. Citizens Jmp downgraded CarGurus from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 2nd. Needham & Company LLC dropped their price target on CarGurus from $45.00 to $39.00 and set a "buy" rating on the stock in a research note on Friday, May 9th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $42.00 price target on shares of CarGurus in a research report on Monday, May 12th. Seven investment analysts have rated the stock with a hold rating and six have given a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $37.63.

CarGurus Trading Down 1.3%

Shares of NASDAQ:CARG traded down $0.40 on Thursday, reaching $31.41. 1,954,510 shares of the company were exchanged, compared to its average volume of 812,560. The company has a 50-day moving average of $32.77 and a 200-day moving average of $32.29. The firm has a market cap of $3.28 billion, a price-to-earnings ratio of 21.79, a price-to-earnings-growth ratio of 1.56 and a beta of 1.42. CarGurus has a 1-year low of $21.65 and a 1-year high of $41.33.

CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.04. CarGurus had a net margin of 4.28% and a return on equity of 32.54%. The firm had revenue of $225.16 million for the quarter, compared to the consensus estimate of $226.72 million. During the same quarter in the previous year, the firm earned $0.32 earnings per share. The firm's revenue was up 4.3% on a year-over-year basis. As a group, analysts forecast that CarGurus will post 1.41 earnings per share for the current year.

Insider Buying and Selling at CarGurus

In other news, COO Samuel Zales sold 10,000 shares of CarGurus stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $33.88, for a total transaction of $338,800.00. Following the completion of the transaction, the chief operating officer owned 461,821 shares of the company's stock, valued at $15,646,495.48. The trade was a 2.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Ismail Elshareef sold 1,325 shares of the stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $35.00, for a total transaction of $46,375.00. Following the completion of the sale, the insider directly owned 104,322 shares in the company, valued at approximately $3,651,270. The trade was a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 49,049 shares of company stock worth $1,616,397. Corporate insiders own 16.99% of the company's stock.

Institutional Trading of CarGurus

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jane Street Group LLC boosted its stake in shares of CarGurus by 113.0% during the 1st quarter. Jane Street Group LLC now owns 123,305 shares of the company's stock worth $3,592,000 after purchasing an additional 65,420 shares during the last quarter. Royal Bank of Canada raised its position in shares of CarGurus by 22.6% in the first quarter. Royal Bank of Canada now owns 75,072 shares of the company's stock valued at $2,186,000 after buying an additional 13,834 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of CarGurus by 3.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,845 shares of the company's stock valued at $1,889,000 after buying an additional 1,890 shares during the period. Finally, AQR Capital Management LLC boosted its position in CarGurus by 25.4% during the first quarter. AQR Capital Management LLC now owns 25,946 shares of the company's stock worth $756,000 after acquiring an additional 5,259 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 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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