CarGurus (NASDAQ:CARG) Releases Q2 2026 Earnings Guidance

CarGurus (NASDAQ:CARG - Get Free Report) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.570-0.640 for the period, compared to the consensus estimate of 0.580. The company issued revenue guidance of $247.0 million-$252.0 million, compared to the consensus revenue estimate of $249.2 million. CarGurus also updated its FY 2026 guidance to EPS.

Analyst Ratings Changes

Several research firms recently commented on CARG. Wall Street Zen cut CarGurus from a "buy" rating to a "hold" rating in a research report on Sunday, February 15th. Needham & Company LLC lowered their target price on CarGurus from $44.00 to $37.00 and set a "buy" rating on the stock in a research report on Thursday, February 5th. DA Davidson lowered their target price on CarGurus from $37.50 to $33.50 and set a "neutral" rating on the stock in a research report on Friday, February 20th. UBS Group set a $38.00 target price on CarGurus in a research report on Tuesday, February 24th. Finally, Royal Bank Of Canada lowered their target price on CarGurus from $40.00 to $34.00 and set an "outperform" rating on the stock in a research report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $38.14.

CarGurus Stock Performance

Shares of CARG stock traded up $0.75 during mid-day trading on Thursday, hitting $38.16. 1,794,551 shares of the stock traded hands, compared to its average volume of 1,213,078. CarGurus has a twelve month low of $26.39 and a twelve month high of $39.42. The firm has a market cap of $3.63 billion, a price-to-earnings ratio of 24.62, a price-to-earnings-growth ratio of 1.41 and a beta of 1.28. The company's 50-day simple moving average is $34.40 and its 200-day simple moving average is $34.61.

CarGurus (NASDAQ:CARG - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The company had revenue of $243.56 million for the quarter, compared to analysts' expectations of $243.12 million. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Analysts forecast that CarGurus will post 2.06 earnings per share for the current year.

Insider Buying and Selling

In related news, CMO Dafna Sarnoff sold 5,445 shares of CarGurus stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total value of $179,902.80. Following the transaction, the chief marketing officer directly owned 134,369 shares in the company, valued at $4,439,551.76. The trade was a 3.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of CarGurus stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $35.61, for a total value of $88,989.39. Following the completion of the transaction, the insider owned 98,191 shares in the company, valued at $3,496,581.51. The trade was a 2.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 12,852 shares of company stock valued at $431,053. Insiders own 16.99% of the company's stock.

Hedge Funds Weigh In On CarGurus

A number of hedge funds have recently modified their holdings of CARG. UBS Group AG boosted its position in shares of CarGurus by 158.2% in the third quarter. UBS Group AG now owns 1,537,856 shares of the company's stock worth $57,254,000 after buying an additional 942,199 shares during the period. Wellington Management Group LLP boosted its position in shares of CarGurus by 6.6% in the third quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company's stock worth $358,773,000 after buying an additional 594,670 shares during the period. No Street GP LP boosted its position in shares of CarGurus by 108.9% in the third quarter. No Street GP LP now owns 835,000 shares of the company's stock worth $31,087,000 after buying an additional 435,340 shares during the period. Squarepoint Ops LLC boosted its position in shares of CarGurus by 1,457.7% in the second quarter. Squarepoint Ops LLC now owns 403,447 shares of the company's stock worth $13,503,000 after buying an additional 377,547 shares during the period. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in shares of CarGurus in the third quarter worth $12,175,000. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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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