CarGurus (NASDAQ:CARG) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded CarGurus from “hold” to “buy,” adding to a generally mixed analyst picture that still shows a consensus rating of Hold and an average target price of $38.14.
• CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue came in at $243.6 million, up 8.2% year over year and slightly above expectations. The company also said adjusted EBITDA beat the high end of guidance and it repurchased $175 million of stock.
• The stock was down 9.0% and opened at $34.74, even as the company guided Q2 EPS to $0.57–$0.64 and revenue to $247 million–$252 million. Insider selling and heavy institutional ownership were also highlighted in the report.

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

CARG has been the topic of several other research reports. BTIG Research dropped their price objective on CarGurus from $44.00 to $37.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. UBS Group boosted their target price on shares of CarGurus from $33.00 to $37.00 and gave the company a "neutral" rating in a report on Friday. Oppenheimer lowered their target price on shares of CarGurus from $40.00 to $38.00 and set an "outperform" rating on the stock in a report on Tuesday, February 24th. Royal Bank Of Canada lowered their target price on shares of CarGurus from $40.00 to $34.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Finally, Needham & Company LLC boosted their target price on shares of CarGurus from $37.00 to $43.00 and gave the company a "buy" rating in a report on Friday. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $38.14.

CarGurus Trading Down 9.0%

CarGurus stock opened at $34.74 on Friday. CarGurus has a 12 month low of $26.39 and a 12 month high of $39.42. The business's 50 day simple moving average is $34.59 and its 200 day simple moving average is $34.63. The company has a market cap of $3.31 billion, a price-to-earnings ratio of 22.86, a PEG ratio of 1.42 and a beta of 1.28.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.56 by $0.02. CarGurus had a return on equity of 48.98% and a net margin of 15.57%.The business had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.12 million. During the same quarter in the prior year, the business earned $0.46 earnings per share. CarGurus's revenue for the quarter was up 8.2% on a year-over-year basis. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, equities research analysts forecast that CarGurus will post 2.06 earnings per share for the current fiscal year.

Insider Buying and Selling at CarGurus

In other CarGurus news, insider Jennifer Ladd Hanson sold 2,499 shares of the business's stock in a transaction on Tuesday, March 31st. The shares were sold at an average price of $35.61, for a total transaction of $88,989.39. Following the sale, the insider owned 98,191 shares of the company's stock, valued at $3,496,581.51. The trade was a 2.48% 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, CMO Dafna Sarnoff sold 5,445 shares of the business's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 12,852 shares of company stock worth $431,053. 16.99% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Wellington Management Group LLP grew its position in shares of CarGurus by 6.6% during the 3rd quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company's stock valued at $358,773,000 after purchasing an additional 594,670 shares in the last quarter. Prevatt Capital Ltd grew its position in shares of CarGurus by 12.5% during the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company's stock valued at $84,274,000 after purchasing an additional 275,000 shares in the last quarter. Geode Capital Management LLC grew its position in shares of CarGurus by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company's stock valued at $80,602,000 after purchasing an additional 24,910 shares in the last quarter. Congress Asset Management Co. grew its position in shares of CarGurus by 2.9% during the 4th quarter. Congress Asset Management Co. now owns 1,958,144 shares of the company's stock valued at $75,095,000 after purchasing an additional 54,937 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of CarGurus by 0.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company's stock valued at $64,093,000 after purchasing an additional 6,676 shares in the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

CarGurus News Roundup

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue of $243.6 million was also slightly above expectations and up 8.2% year over year. Q1 Earnings Report and Conference Call
• Positive Sentiment: The company said Q1 adjusted EBITDA came in above the high end of guidance, and it repurchased $175 million of stock during the quarter, signaling strong cash generation and capital return. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Needham raised its price target on CarGurus from $37 to $43 and kept a Buy rating, while JPMorgan also lifted its target from $36 to $38, reinforcing optimism around the stock. Analyst price target updates
• Neutral Sentiment: CarGurus’ Q2 guidance calls for EPS of $0.57 to $0.64 and revenue of $247 million to $252 million, which is broadly in line with Street expectations and suggests steady near-term growth. Q1 Results and Guidance
• Negative Sentiment: Despite the earnings beat, some market commentary noted the stock sold off after the report, suggesting investors may be focusing on guidance and valuation rather than just the headline beat. Market reaction article

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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