CarGurus (NASDAQ:CARG) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded CarGurus from “hold” to “buy.” Other analysts have also raised price targets, giving the stock a consensus “Moderate Buy” rating and an average target of $40.75.
• CarGurus exceeded quarterly expectations, reporting $0.66 in EPS versus the $0.61 consensus and $250.97 million in revenue, up 7.2% year over year.
• The stock opened at $36.85, while institutional investors own 86.9% of shares. Insiders sold approximately $2.1 million worth of stock over the past 90 days.

CarGurus (NASDAQ:CARG - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Other research analysts have also issued reports about the stock. Oppenheimer raised their price objective on shares of CarGurus from $38.00 to $44.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Royal Bank Of Canada upped their price objective on CarGurus from $35.00 to $42.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Citigroup raised their price target on shares of CarGurus from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Piper Sandler restated a "sector weight" rating on shares of CarGurus in a research note on Friday, June 12th. Finally, Barclays boosted their target price on CarGurus from $40.00 to $41.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $40.75.

CarGurus Price Performance

NASDAQ:CARG opened at $36.85 on Friday. The firm has a 50-day moving average of $34.64 and a two-hundred day moving average of $32.88. The stock has a market cap of $3.28 billion, a P/E ratio of 20.03, a PEG ratio of 1.31 and a beta of 1.17. CarGurus has a 1-year low of $26.39 and a 1-year high of $41.22.

CarGurus (NASDAQ:CARG - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.05. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The company had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. During the same period last year, the firm earned $0.57 earnings per share. The company's revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, equities analysts expect that CarGurus will post 2.17 earnings per share for the current year.

Insiders Place Their Bets

In related news, CTO Matthew Todd Quinn sold 3,824 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total value of $133,954.72. Following the completion of the transaction, the chief technology officer owned 233,146 shares of the company's stock, valued at approximately $8,167,104.38. This trade represents a 1.61% decrease in their position. The transaction 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, General Counsel Javier Zamora sold 8,072 shares of CarGurus stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $29.53, for a total transaction of $238,366.16. Following the transaction, the general counsel owned 103,061 shares in the company, valued at approximately $3,043,391.33. The trade was a 7.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 60,015 shares of company stock valued at $2,112,102 over the last 90 days. 18.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CARG. Convergence Investment Partners LLC bought a new stake in shares of CarGurus in the 4th quarter valued at approximately $3,742,000. AEGON ASSET MANAGEMENT UK Plc bought a new position in CarGurus during the fourth quarter valued at approximately $2,113,000. Westover Capital Advisors LLC bought a new position in CarGurus during the fourth quarter valued at approximately $1,912,000. Louisiana State Employees Retirement System acquired a new stake in CarGurus in the first quarter valued at approximately $1,226,000. Finally, Lazard Asset Management LLC increased its stake in shares of CarGurus by 180.8% during the 1st quarter. Lazard Asset Management LLC now owns 445,868 shares of the company's stock worth $15,182,000 after purchasing an additional 287,067 shares during the last quarter. 86.90% of the stock is owned by institutional investors and hedge funds.

CarGurus Company Profile

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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