Pale Fire Capital SE Invests $13.11 Million in CarGurus, Inc. $CARG

Key Points

• Pale Fire Capital SE acquired 384,626 CarGurus shares worth approximately $13.11 million, representing 0.43% of the company and 0.4% of the investor’s portfolio. Institutional investors collectively own 86.90% of CarGurus.
• CarGurus exceeded quarterly expectations, reporting $0.66 EPS versus the $0.61 consensus and $250.97 million in revenue, up 7.2% year over year. The company issued third-quarter 2026 EPS guidance of $0.63–$0.69.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $40.75 compared with shares trading near $34.63. Meanwhile, insiders have sold 61,943 shares worth approximately $2.24 million over the past 90 days.

Pale Fire Capital SE bought a new stake in CarGurus, Inc. (NASDAQ:CARG - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 384,626 shares of the company's stock, valued at approximately $13,112,000. CarGurus accounts for about 0.4% of Pale Fire Capital SE's portfolio, making the stock its 17th largest position. Pale Fire Capital SE owned 0.43% of CarGurus as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Horizon Investments LLC grew its stake in CarGurus by 2.0% during the 4th quarter. Horizon Investments LLC now owns 16,375 shares of the company's stock valued at $628,000 after purchasing an additional 318 shares during the last quarter. ProShare Advisors LLC boosted its holdings in shares of CarGurus by 2.8% in the 4th quarter. ProShare Advisors LLC now owns 15,992 shares of the company's stock valued at $613,000 after acquiring an additional 436 shares during the last quarter. Ritholtz Wealth Management increased its stake in shares of CarGurus by 4.2% in the first quarter. Ritholtz Wealth Management now owns 11,039 shares of the company's stock worth $376,000 after acquiring an additional 449 shares during the period. Hennion & Walsh Asset Management Inc. raised its holdings in shares of CarGurus by 1.9% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 24,318 shares of the company's stock worth $829,000 after purchasing an additional 459 shares during the last quarter. Finally, HighTower Advisors LLC boosted its holdings in CarGurus by 7.8% in the fourth quarter. HighTower Advisors LLC now owns 7,094 shares of the company's stock valued at $272,000 after purchasing an additional 514 shares during the last quarter. Hedge funds and other institutional investors own 86.90% of the company's stock.

CarGurus Trading Down 0.4%

Shares of CARG opened at $34.63 on Thursday. The firm has a market cap of $3.08 billion, a P/E ratio of 18.82, a PEG ratio of 1.23 and a beta of 1.16. CarGurus, Inc. has a 12 month low of $26.39 and a 12 month high of $41.22. The stock's 50 day moving average is $35.62 and its two-hundred day moving average is $33.31.

CarGurus (NASDAQ:CARG - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $250.97 million for the quarter, compared to analyst estimates of $249.85 million. During the same quarter last year, the firm posted $0.57 EPS. The business's revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Equities research analysts forecast that CarGurus, Inc. will post 2.17 EPS for the current year.

Insider Buying and Selling at CarGurus

In related news, Director Greg M. Schwartz sold 10,000 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $36.07, for a total transaction of $360,700.00. Following the completion of the transaction, the director owned 8,716 shares in the company, valued at $314,386.12. This represents a 53.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, General Counsel Javier Zamora sold 6,205 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $37.08, for a total value of $230,081.40. Following the sale, the general counsel owned 80,260 shares of the company's stock, valued at approximately $2,976,040.80. This trade represents a 7.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 61,943 shares of company stock valued at $2,238,736. Corporate insiders own 18.19% of the company's stock.

Wall Street Analyst Weigh In

CARG has been the subject of a number of recent research reports. JPMorgan Chase & Co. lifted their price objective on CarGurus from $36.00 to $38.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Barclays lifted their price target on CarGurus from $40.00 to $41.00 and gave the company an "overweight" rating in a research report on Monday, August 10th. Oppenheimer boosted their price target on CarGurus from $38.00 to $44.00 and gave the company an "outperform" rating in a report on Wednesday, August 12th. Needham & Company LLC lifted their target price on shares of CarGurus from $43.00 to $44.00 and gave the company a "buy" rating in a report on Friday, August 7th. Finally, Royal Bank Of Canada boosted their target price on shares of CarGurus from $35.00 to $42.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $40.75.

CarGurus 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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