CarGurus (NASDAQ:CARG) Upgraded by Freedom Capital to Strong-Buy Rating

CarGurus (NASDAQ:CARG - Get Free Report) was upgraded by Freedom Capital to a "strong-buy" rating in a note issued to investors on Friday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the company. Citigroup initiated coverage on CarGurus in a research note on Friday. They issued a "buy" rating for the company. Wall Street Zen cut shares of CarGurus from a "buy" rating to a "hold" rating in a research note on Saturday. Needham & Company LLC increased their price target on shares of CarGurus from $37.00 to $43.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. BTIG Research dropped their price target on shares of CarGurus from $44.00 to $37.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Finally, UBS Group set a $35.00 price objective on shares of CarGurus in a research note on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $37.79.

CarGurus Trading Down 1.8%

NASDAQ CARG opened at $27.17 on Friday. CarGurus has a 1-year low of $26.39 and a 1-year high of $39.42. The firm's fifty day simple moving average is $32.45 and its 200-day simple moving average is $33.55. The company has a market capitalization of $2.45 billion, a PE ratio of 17.88, a price-to-earnings-growth ratio of 1.01 and a beta of 1.20.

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

Insider Activity

In other CarGurus news, CMO Dafna Sarnoff sold 5,445 shares of the company's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the completion of the sale, the chief marketing officer directly owned 134,369 shares in the company, valued at $4,439,551.76. This represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 dated 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. Insiders sold 20,924 shares of company stock worth $669,419 in the last 90 days. Insiders own 16.99% of the company's stock.

Institutional Investors Weigh In On CarGurus

Several hedge funds have recently modified their holdings of CARG. Brown Brothers Harriman & Co. acquired a new stake in shares of CarGurus in the third quarter worth $46,000. Torren Management LLC acquired a new position in CarGurus during the 4th quarter valued at $49,000. EverSource Wealth Advisors LLC boosted its holdings in CarGurus by 491.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company's stock valued at $55,000 after purchasing an additional 1,362 shares during the period. Clearstead Advisors LLC grew its position in CarGurus by 321.2% in the 4th quarter. Clearstead Advisors LLC now owns 2,127 shares of the company's stock worth $82,000 after purchasing an additional 1,622 shares during the last quarter. Finally, Rockefeller Capital Management L.P. increased its holdings in shares of CarGurus by 356.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company's stock worth $83,000 after purchasing an additional 1,697 shares during the period. 86.90% of the stock is owned by 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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