Prevatt Capital Ltd Boosts Stock Position in CarGurus, Inc. $CARG

Key Points

• Prevatt Capital Ltd boosted its CarGurus holding by 28.1% to 2,050,000 shares, making CARG about 25.9% of Prevatt’s portfolio and its largest position (2.07% of CarGurus, ~$76.3M).
• Insider selling: CEO Jason Trevisan sold 16,548 shares (about $645,700) and insiders have sold 29,003 shares (~$1.12M) in the past three months, bringing insider ownership to 16.99%.
• Analysts and outlook: several firms trimmed price targets and ratings are mixed, leaving an average Street rating of "Hold" with a $38.14 target; the company beat EPS ($0.63 vs. $0.61) but missed revenue and set Q1 guidance of $0.52–$0.58 EPS.

Prevatt Capital Ltd increased its holdings in shares of CarGurus, Inc. (NASDAQ:CARG - Free Report) by 28.1% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 2,050,000 shares of the company's stock after purchasing an additional 450,000 shares during the period. CarGurus makes up approximately 25.9% of Prevatt Capital Ltd's holdings, making the stock its largest position. Prevatt Capital Ltd owned 2.07% of CarGurus worth $76,322,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its holdings in shares of CarGurus by 17.8% during the third quarter. JPMorgan Chase & Co. now owns 545,636 shares of the company's stock worth $20,314,000 after buying an additional 82,511 shares during the last quarter. Congress Asset Management Co. bought a new stake in shares of CarGurus in the third quarter valued at approximately $70,856,000. Jupiter Asset Management Ltd. grew its stake in shares of CarGurus by 230.6% in the third quarter. Jupiter Asset Management Ltd. now owns 580,117 shares of the company's stock worth $21,598,000 after acquiring an additional 404,617 shares during the last quarter. Aurora Investment Counsel acquired a new stake in shares of CarGurus in the third quarter worth $2,174,000. Finally, Envestnet Asset Management Inc. increased its position in CarGurus by 100.3% during the third quarter. Envestnet Asset Management Inc. now owns 102,818 shares of the company's stock worth $3,828,000 after acquiring an additional 51,487 shares during the period. Institutional investors own 86.90% of the company's stock.

Insider Buying and Selling at CarGurus

In other news, CEO Jason Trevisan sold 16,548 shares of the company's stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $39.02, for a total value of $645,702.96. Following the sale, the chief executive officer directly owned 630,483 shares in the company, valued at approximately $24,601,446.66. This represents a 2.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Ismail Elshareef sold 1,645 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $32.21, for a total value of $52,985.45. Following the completion of the transaction, the insider directly owned 91,822 shares of the company's stock, valued at approximately $2,957,586.62. The trade was a 1.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 29,003 shares of company stock worth $1,118,494 in the last three months. 16.99% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. BTIG Research cut their target price on shares of CarGurus from $44.00 to $37.00 and set a "buy" rating for the company in a research note on Friday, February 20th. DA Davidson dropped their price objective on shares of CarGurus from $37.50 to $33.50 and set a "neutral" rating on the stock in a report on Friday, February 20th. Oppenheimer cut their price objective on shares of CarGurus from $40.00 to $38.00 and set an "outperform" rating for the company in a research report on Tuesday, February 24th. Needham & Company LLC reduced their target price on shares of CarGurus from $44.00 to $37.00 and set a "buy" rating for the company in a research note on Thursday, February 5th. Finally, Wall Street Zen downgraded CarGurus from a "buy" rating to a "hold" rating in a research report on Sunday, February 15th. Five equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, CarGurus presently has an average rating of "Hold" and an average target price of $38.14.

CarGurus Price Performance

Shares of CarGurus stock opened at $30.86 on Friday. CarGurus, Inc. has a 52-week low of $24.65 and a 52-week high of $39.42. The firm has a market capitalization of $2.94 billion, a PE ratio of 19.91, a price-to-earnings-growth ratio of 1.16 and a beta of 1.37. The company's fifty day moving average price is $32.19 and its two-hundred day moving average price is $34.77.

CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The company reported $0.63 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.02. CarGurus had a net margin of 16.60% and a return on equity of 47.50%. The company had revenue of $209.09 million during the quarter, compared to the consensus estimate of $239.07 million. During the same period last year, the firm earned $0.55 EPS. The firm's revenue for the quarter was up 14.7% compared to the same quarter last year. CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. Analysts predict that CarGurus, Inc. will post 1.41 earnings per share for the current fiscal year.

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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