Select Equity Group L.P. Grows Stake in CarGurus, Inc. $CARG

Key Points

• Select Equity Group L.P. increased its stake in CarGurus, Inc. by 106.6% in the first quarter, owning 913,975 shares valued at approximately $26.6 million.
• Insider transactions revealed that COO Samuel Zales sold 10,000 shares for about $338,800, while CEO Zachary Emerson Hallowell sold 1,733 shares for approximately $58,645.
• CarGurus recently reported a quarterly earnings per share of $0.57, exceeding expectations, and provides a Q3 2025 guidance of earnings between $0.500 to $0.580 per share.

Select Equity Group L.P. boosted its holdings in CarGurus, Inc. (NASDAQ:CARG - Free Report) by 106.6% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 913,975 shares of the company's stock after buying an additional 471,691 shares during the period. Select Equity Group L.P. owned 0.88% of CarGurus worth $26,624,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. BI Asset Management Fondsmaeglerselskab A S purchased a new position in shares of CarGurus in the first quarter worth $46,000. Signaturefd LLC grew its holdings in shares of CarGurus by 83.9% in the first quarter. Signaturefd LLC now owns 1,751 shares of the company's stock valued at $51,000 after purchasing an additional 799 shares in the last quarter. Blue Trust Inc. grew its holdings in shares of CarGurus by 49.8% in the first quarter. Blue Trust Inc. now owns 2,494 shares of the company's stock valued at $73,000 after purchasing an additional 829 shares in the last quarter. Versant Capital Management Inc grew its holdings in shares of CarGurus by 695.4% in the first quarter. Versant Capital Management Inc now owns 2,593 shares of the company's stock valued at $76,000 after purchasing an additional 2,267 shares in the last quarter. Finally, Bayforest Capital Ltd bought a new position in shares of CarGurus in the 1st quarter valued at about $76,000. Hedge funds and other institutional investors own 86.90% of the company's stock.

CarGurus Stock Performance

CARG traded down $0.19 during trading on Friday, hitting $36.11. 175,757 shares of the stock were exchanged, compared to its average volume of 1,047,484. The firm has a 50 day simple moving average of $33.43 and a 200 day simple moving average of $31.42. The firm has a market cap of $3.58 billion, a price-to-earnings ratio of 29.40, a P/E/G ratio of 1.68 and a beta of 1.54. CarGurus, Inc. has a 1 year low of $24.65 and a 1 year high of $41.33.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.54 by $0.03. The company had revenue of $234.03 million during the quarter, compared to analyst estimates of $232.29 million. CarGurus had a return on equity of 36.23% and a net margin of 14.12%.CarGurus's revenue was up 7.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.41 earnings per share. CarGurus has set its Q3 2025 guidance at 0.500-0.580 EPS. As a group, equities analysts anticipate that CarGurus, Inc. will post 1.41 earnings per share for the current fiscal year.

Insider Activity at CarGurus

In other CarGurus news, insider Ismail Elshareef sold 1,325 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $35.00, for a total transaction of $46,375.00. Following the completion of the sale, the insider owned 104,322 shares in the company, valued at $3,651,270. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Javier Zamora sold 6,154 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $35.00, for a total value of $215,390.00. Following the sale, the general counsel owned 92,807 shares of the company's stock, valued at approximately $3,248,245. This represents a 6.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,538 shares of company stock valued at $1,067,077 over the last 90 days. Insiders own 16.99% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Gordon Haskett assumed coverage on shares of CarGurus in a report on Monday, July 14th. They issued a "hold" rating and a $35.00 price target for the company. Citizens Jmp lowered CarGurus from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 2nd. Oppenheimer decreased their price target on CarGurus from $42.00 to $40.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Citigroup decreased their price target on CarGurus from $40.00 to $37.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. Finally, Needham & Company LLC boosted their price objective on CarGurus from $39.00 to $44.00 and gave the company a "buy" rating in a report on Friday, August 8th. Six analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $38.46.

CarGurus Profile

CarGurus, Inc operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers.