CarGurus (NASDAQ:CARG) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded CarGurus from “hold” to “buy,” adding to a generally favorable analyst backdrop that now shows an average rating of Moderate Buy with a $37.79 average price target.
• CarGurus reported solid quarterly results, including EPS of $0.58 versus $0.56 expected and revenue of $243.56 million, while revenue rose 8.2% year over year. The company also guided Q2 2026 EPS to a range of 0.570-0.640.
• The stock was trading higher and opened at $33.03, up 6.4% on the day, while insider sales and heavy institutional ownership remained notable in the background. Nearly 86.9% of shares are held by hedge funds and other institutional investors.

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

A number of other research analysts also recently weighed in on CARG. Weiss Ratings downgraded CarGurus from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 13th. Royal Bank Of Canada boosted their price objective on CarGurus from $34.00 to $35.00 and gave the company an "outperform" rating in a report on Monday, May 11th. Needham & Company LLC boosted their price objective on CarGurus from $37.00 to $43.00 and gave the company a "buy" rating in a report on Friday, May 8th. Citigroup started coverage on CarGurus in a research report on Friday, June 12th. They set a "buy" rating on the stock. Finally, Barclays started coverage on CarGurus in a report on Thursday, May 28th. They issued an "overweight" rating and a $35.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, CarGurus has an average rating of "Moderate Buy" and an average target price of $37.79.

CarGurus Trading Up 6.4%

NASDAQ:CARG opened at $33.03 on Friday. CarGurus has a 12 month low of $26.39 and a 12 month high of $39.42. The stock has a market capitalization of $2.98 billion, a price-to-earnings ratio of 21.73, a PEG ratio of 1.13 and a beta of 1.20. The firm has a fifty day simple moving average of $31.58 and a two-hundred day simple moving average of $33.17.

CarGurus (NASDAQ:CARG - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The firm had revenue of $243.56 million for the quarter, compared to analyst estimates of $243.10 million. CarGurus had a net margin of 15.57% and a return on equity of 54.42%. The business's quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.46 earnings per share. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Equities analysts predict that CarGurus will post 2.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Jennifer Ladd Hanson sold 2,499 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 98,191 shares of the company's stock, valued at $3,496,581.51. This represents a 2.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 5,445 shares of CarGurus stock in a transaction that occurred on Thursday, April 2nd. The shares were 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 approximately $4,439,551.76. The trade was a 3.89% 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 20,924 shares of company stock worth $669,419 over the last 90 days. Company insiders own 16.99% of the company's stock.

Hedge Funds Weigh In On CarGurus

Hedge funds have recently bought and sold shares of the company. Horizon Investments LLC increased its holdings in CarGurus by 2.0% during the 4th quarter. Horizon Investments LLC now owns 16,375 shares of the company's stock valued at $628,000 after purchasing an additional 318 shares during the period. ProShare Advisors LLC lifted its holdings in CarGurus by 2.8% in the 4th quarter. ProShare Advisors LLC now owns 15,992 shares of the company's stock worth $613,000 after buying an additional 436 shares during the period. Ritholtz Wealth Management lifted its holdings in CarGurus by 4.2% in the 1st quarter. Ritholtz Wealth Management now owns 11,039 shares of the company's stock worth $376,000 after buying an additional 449 shares during the period. HighTower Advisors LLC grew its position in shares of CarGurus by 7.8% in the 4th quarter. HighTower Advisors LLC now owns 7,094 shares of the company's stock worth $272,000 after buying an additional 514 shares during the last quarter. Finally, Illinois Municipal Retirement Fund grew its position in shares of CarGurus by 1.6% in the 4th quarter. Illinois Municipal Retirement Fund now owns 43,583 shares of the company's stock worth $1,671,000 after buying an additional 679 shares during the last quarter. 86.90% of the stock is owned by hedge funds and other institutional investors.

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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