CarGurus (NASDAQ:CARG) Trading Down 6% - What's Next?

Key Points

• CarGurus shares fell 6% to about $36.66 in Monday trading, with volume down 93% from the stock’s average session volume.
• Analysts remain broadly positive, with an average “Moderate Buy” rating and a $40.35 price target; RBC raised its target to $42 and rated the stock “outperform.”
• CarGurus exceeded quarterly expectations, reporting $0.66 in EPS and $250.97 million in revenue, while revenue grew 7.2% year over year; insiders have sold 31,764 shares worth roughly $1.07 million over the past 90 days.

Shares of CarGurus, Inc. (NASDAQ:CARG - Get Free Report) fell 6% on Monday . The company traded as low as $36.88 and last traded at $36.6570. Approximately 95,946 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 1,283,452 shares. The stock had previously closed at $38.99.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on CARG. 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. Piper Sandler reissued a "sector weight" rating on shares of CarGurus in a research note on Friday, June 12th. Weiss Ratings downgraded shares of CarGurus from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 13th. JPMorgan Chase & Co. upped their price target on shares of CarGurus from $36.00 to $38.00 and gave the stock a "neutral" rating in a research report on Friday, May 8th. Finally, UBS Group increased their price target on shares of CarGurus from $37.00 to $40.00 and gave the company a "neutral" rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, CarGurus presently has an average rating of "Moderate Buy" and an average price target of $40.35.

CarGurus Price Performance

The company has a market capitalization of $3.34 billion, a price-to-earnings ratio of 20.16, a PEG ratio of 1.42 and a beta of 1.17. The stock has a 50-day moving average price of $32.85 and a 200-day moving average price of $32.64.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.05. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.The business had revenue of $250.97 million for the quarter, compared to analyst estimates of $249.85 million. During the same period in the previous year, the firm earned $0.57 EPS. The firm's revenue was up 7.2% compared to the same quarter last year. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Equities analysts forecast that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Insider Activity

In other news, insider Jennifer Ladd Hanson sold 2,499 shares of the firm's stock in a transaction dated 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 sale, the insider owned 92,894 shares in the company, valued at approximately $3,210,416.64. This trade represents a 2.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 dated Monday, June 1st. The stock was sold at an average price of $29.53, for a total transaction of $238,366.16. Following the sale, the general counsel directly owned 103,061 shares of the company's stock, valued at $3,043,391.33. The trade was a 7.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 31,764 shares of company stock valued at $1,071,649 over the last ninety days. 18.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CarGurus

Institutional investors and hedge funds have recently made changes to their positions in the company. Brown Brothers Harriman & Co. bought a new stake in CarGurus in the 3rd quarter valued at $46,000. Torren Management LLC bought a new stake in shares of CarGurus in the fourth quarter valued at about $49,000. EverSource Wealth Advisors LLC boosted its position in shares of CarGurus by 491.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company's stock valued at $55,000 after acquiring an additional 1,362 shares during the period. Clearstead Advisors LLC grew its stake in shares of CarGurus by 321.2% in the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company's stock valued at $82,000 after acquiring an additional 1,622 shares in the last quarter. Finally, Rockefeller Capital Management L.P. increased its position in CarGurus by 356.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company's stock worth $83,000 after acquiring an additional 1,697 shares during the period. Institutional investors and hedge funds own 86.90% of the company's stock.

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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