CarGurus (NASDAQ:CARG) Issues Q3 2026 Earnings Guidance

Key Points

• CarGurus guided for Q3 2026 EPS of $0.63–$0.69, above the analyst consensus of $0.61. Revenue guidance of $253.5 million–$258.5 million broadly brackets the $256.9 million consensus estimate.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $38.55; Needham recently raised its target to $43.
• CarGurus shares traded near $36.38, while insiders sold 31,764 shares worth approximately $1.07 million over the past quarter. Institutional investors and hedge funds own 86.90% of the company.

CarGurus (NASDAQ:CARG - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.630-0.690 for the period, compared to the consensus estimate of 0.610. The company issued revenue guidance of $253.5 million-$258.5 million, compared to the consensus revenue estimate of $256.9 million. CarGurus also updated its FY 2026 guidance to EPS.

Analysts Set New Price Targets

A number of research firms have commented on CARG. Freedom Capital raised shares of CarGurus to a "strong-buy" rating in a research note on Friday, June 12th. Weiss Ratings cut CarGurus from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 13th. Royal Bank Of Canada raised their price target on CarGurus from $34.00 to $35.00 and gave the stock an "outperform" rating in a research report on Monday, May 11th. Piper Sandler reissued a "sector weight" rating on shares of CarGurus in a research note on Friday, June 12th. Finally, Needham & Company LLC lifted their target price on shares of CarGurus from $37.00 to $43.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $38.55.

CarGurus Price Performance

Shares of CarGurus stock traded down $0.03 on Thursday, reaching $36.38. The company had a trading volume of 1,226,880 shares, compared to its average volume of 1,285,814. CarGurus has a 1 year low of $26.39 and a 1 year high of $39.42. The firm has a market cap of $3.28 billion, a price-to-earnings ratio of 23.93, a P/E/G ratio of 1.35 and a beta of 1.17. The firm's 50-day moving average price is $32.54 and its two-hundred day moving average price is $32.59.

CarGurus (NASDAQ:CARG - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, beating the consensus estimate of $0.61 by $0.05. The firm had revenue of $250.97 million for the quarter, compared to analyst estimates of $249.85 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, analysts anticipate that CarGurus will post 2.11 EPS for the current year.

Insider Activity at CarGurus

In related news, insider Jennifer Ladd Hanson sold 2,499 shares of the firm's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $34.56, for a total transaction of $86,365.44. Following the completion of the transaction, the insider owned 92,894 shares of the company's stock, valued at $3,210,416.64. This trade represents a 2.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 6,205 shares of CarGurus stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $37.08, for a total value of $230,081.40. Following the completion of the transaction, the general counsel owned 80,260 shares of the company's stock, valued at approximately $2,976,040.80. This represents a 7.18% 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 have sold a total of 31,764 shares of company stock worth $1,071,649 over the last quarter. Insiders own 18.19% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Brown Brothers Harriman & Co. purchased a new position in CarGurus during the third quarter worth about $46,000. EverSource Wealth Advisors LLC raised its position in shares of CarGurus by 491.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company's stock valued at $55,000 after buying an additional 1,362 shares during the period. Quantbot Technologies LP acquired a new position in CarGurus in the second quarter valued at approximately $87,000. Parkside Financial Bank & Trust lifted its holdings in CarGurus by 48.0% in the fourth quarter. Parkside Financial Bank & Trust now owns 3,018 shares of the company's stock valued at $116,000 after acquiring an additional 979 shares during the last quarter. Finally, Quadrant Capital Group LLC purchased a new position in CarGurus in the third quarter worth approximately $148,000. Institutional investors and hedge funds own 86.90% of the company's stock.

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.

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