CarGurus (NASDAQ:CARG) Sees Large Volume Increase - Still a Buy?

Key Points

• CarGurus shares rose on heavy trading volume, with about 1.47 million shares changing hands, up 20% from the prior session, and the stock last trading around $29.74.
• Recent earnings came in ahead of expectations, as the company reported $0.58 EPS versus $0.56 expected and revenue of $243.56 million, with revenue up 8.2% year over year.
• Analyst sentiment remains mixed: CarGurus has an average rating of “Hold” with an average price target of $38.23, though some firms recently raised targets or upgraded the stock while others trimmed their outlooks.

Shares of CarGurus, Inc. (NASDAQ:CARG - Get Free Report) saw unusually-strong trading volume on Monday . Approximately 1,467,110 shares traded hands during trading, an increase of 20% from the previous session's volume of 1,221,802 shares.The stock last traded at $29.7390 and had previously closed at $28.67.

Analyst Ratings Changes

A number of research analysts recently weighed in on CARG shares. Oppenheimer lowered their price objective on shares of CarGurus from $40.00 to $38.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Needham & Company LLC lifted their price objective on CarGurus from $37.00 to $43.00 and gave the stock a "buy" rating in a report on Friday, May 8th. UBS Group lifted their price objective on CarGurus from $33.00 to $37.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Wall Street Zen raised CarGurus from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Finally, Weiss Ratings lowered CarGurus from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday. Five research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $38.23.

CarGurus Price Performance

The firm has a market capitalization of $2.62 billion, a P/E ratio of 19.06, a P/E/G ratio of 1.07 and a beta of 1.28. The company's 50-day simple moving average is $34.57 and its two-hundred day simple moving average is $34.44.

CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.02. CarGurus had a net margin of 15.57% and a return on equity of 54.42%. The business had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.10 million. During the same period last year, the firm earned $0.46 earnings per share. The company's quarterly revenue was up 8.2% on a year-over-year basis. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Analysts predict that CarGurus, Inc. will post 2.06 earnings per share for the current year.

Insider Activity

In other news, Director Stephen Kaufer acquired 30,766 shares of CarGurus stock in a transaction dated Tuesday, March 3rd. The stock was purchased at an average cost of $32.50 per share, with a total value of $999,895.00. Following the completion of the purchase, the director directly owned 323,939 shares in the company, valued at approximately $10,528,017.50. This trade represents a 10.49% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Jennifer Ladd Hanson sold 2,499 shares of the business's stock in a transaction dated Tuesday, March 31st. The shares were 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. In the last ninety days, insiders sold 12,852 shares of company stock valued at $431,053. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CarGurus

Several large investors have recently added to or reduced their stakes in CARG. Royal Bank of Canada increased its holdings in 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 in the last quarter. AQR Capital Management LLC boosted its stake in CarGurus by 25.4% during the 1st 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. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in CarGurus by 3.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,845 shares of the company's stock worth $1,889,000 after buying an additional 1,890 shares in the last quarter. Jane Street Group LLC grew its position in CarGurus by 113.0% during the first quarter. Jane Street Group LLC now owns 123,305 shares of the company's stock valued at $3,592,000 after buying an additional 65,420 shares during the period. Finally, Quantbot Technologies LP purchased a new position in shares of CarGurus during the second quarter worth approximately $87,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.