Bessemer Group Inc. Raises Position in CarGurus, Inc. $CARG

Key Points

• Bessemer Group Inc. increased its CarGurus stake by 18.2% in Q1, buying 166,954 more shares and ending with 1,085,061 shares valued at about $36.9 million.
• CarGurus reported better-than-expected Q1 earnings, posting $0.58 EPS versus the $0.56 estimate, while revenue rose 8.2% year over year to $243.56 million.
• Analyst sentiment remains constructive, with a Moderate Buy consensus and an average price target of $38.05, even as some insiders recently sold shares.

Bessemer Group Inc. grew its stake in CarGurus, Inc. (NASDAQ:CARG - Free Report) by 18.2% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,085,061 shares of the company's stock after purchasing an additional 166,954 shares during the period. Bessemer Group Inc. owned approximately 1.14% of CarGurus worth $36,945,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Wellington Management Group LLP boosted its stake in CarGurus by 6.6% during the third quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company's stock worth $358,773,000 after buying an additional 594,670 shares during the period. Prevatt Capital Ltd raised its position in CarGurus by 12.5% in the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company's stock worth $84,274,000 after purchasing an additional 275,000 shares during the period. Geode Capital Management LLC raised its position in CarGurus by 1.2% in the 4th quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company's stock worth $80,602,000 after purchasing an additional 24,910 shares during the period. Congress Asset Management Co. raised its position in CarGurus by 2.9% in the 4th quarter. Congress Asset Management Co. now owns 1,958,144 shares of the company's stock worth $75,095,000 after purchasing an additional 54,937 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its stake in CarGurus by 0.3% in the second quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company's stock worth $64,093,000 after purchasing an additional 6,676 shares during the last quarter. 86.90% of the stock is owned by institutional investors.

CarGurus Stock Performance

Shares of NASDAQ CARG opened at $35.00 on Friday. CarGurus, Inc. has a 52-week low of $26.39 and a 52-week high of $39.42. The firm has a market capitalization of $3.16 billion, a price-to-earnings ratio of 23.03, a PEG ratio of 1.32 and a beta of 1.18. The stock has a 50 day moving average price of $30.92 and a 200 day moving average price of $32.83.

CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.58 EPS for the quarter, topping the consensus estimate of $0.56 by $0.02. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.The company 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 business posted $0.46 EPS. CarGurus'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 forecast that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Analyst Upgrades and Downgrades

CARG has been the topic of a number of analyst reports. Weiss Ratings cut CarGurus from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, May 13th. UBS Group set a $35.00 price target on CarGurus in a research note on Thursday, May 28th. Freedom Capital upgraded CarGurus to a "strong-buy" rating in a report on Friday, June 12th. Needham & Company LLC upped their price objective on CarGurus from $37.00 to $43.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Finally, Royal Bank Of Canada increased their target price on CarGurus from $34.00 to $35.00 and gave the stock an "outperform" rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $38.05.

Insider Activity

In other news, General Counsel Javier Zamora sold 8,072 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $29.53, for a total value of $238,366.16. Following the completion of the sale, the general counsel owned 103,061 shares in the company, valued at approximately $3,043,391.33. The trade was a 7.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Matthew Todd Quinn sold 3,824 shares of the business's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total transaction of $133,954.72. Following the completion of the sale, the chief technology officer owned 233,146 shares of the company's stock, valued at approximately $8,167,104.38. This represents a 1.61% decrease in their position. 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. Over the last 90 days, insiders have sold 25,559 shares of company stock worth $841,568. Company insiders own 18.19% 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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