Principal Financial Group Inc. Buys 91,755 Shares of CarGurus, Inc. $CARG

Key Points

• Principal Financial Group boosted its CarGurus stake by 19.1% in the first quarter, buying 91,755 additional shares and bringing its total holding to 573,406 shares worth about $19.5 million.
• CarGurus reported better-than-expected quarterly results, with EPS of $0.58 versus the $0.56 consensus and revenue of $243.56 million, up 8.2% year over year. The company also guided Q2 2026 EPS to $0.57-$0.64.
• Despite some insider selling, Wall Street remains cautiously positive: analysts rate the stock Moderate Buy on average with a price target of $38.55, while shares recently traded around $35.06.

Principal Financial Group Inc. increased its stake in CarGurus, Inc. (NASDAQ:CARG - Free Report) by 19.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 573,406 shares of the company's stock after acquiring an additional 91,755 shares during the quarter. Principal Financial Group Inc. owned about 0.60% of CarGurus worth $19,524,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in CARG. Brown Brothers Harriman & Co. acquired a new position in shares of CarGurus in the 3rd quarter worth approximately $46,000. Torren Management LLC acquired a new stake in shares of CarGurus during the fourth quarter worth $49,000. EverSource Wealth Advisors LLC raised its stake in CarGurus by 491.7% during the second quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company's stock worth $55,000 after buying an additional 1,362 shares during the last quarter. Clearstead Advisors LLC raised its stake in CarGurus by 321.2% during the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company's stock worth $82,000 after buying an additional 1,622 shares during the last quarter. Finally, Rockefeller Capital Management L.P. raised its stake in CarGurus by 356.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company's stock worth $83,000 after buying an additional 1,697 shares during the last quarter. 86.90% of the stock is currently owned by institutional investors.

Insider Activity

In other CarGurus news, insider Jennifer Ladd Hanson sold 2,499 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $34.56, for a total value of $86,365.44. Following the transaction, the insider owned 92,894 shares in the company, valued at approximately $3,210,416.64. This represents a 2.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 3,533 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $36.06, for a total value of $127,399.98. Following the completion of the sale, the general counsel directly owned 88,345 shares of the company's stock, valued at $3,185,720.70. This trade represents a 3.85% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 25,559 shares of company stock worth $841,568 in the last three months. Company insiders own 18.19% of the company's stock.

CarGurus Stock Down 0.3%

CarGurus stock opened at $35.06 on Wednesday. The company has a market capitalization of $3.16 billion, a PE ratio of 23.07, a PEG ratio of 1.28 and a beta of 1.18. CarGurus, Inc. has a 12-month low of $26.39 and a 12-month high of $39.42. The firm's fifty day moving average is $31.04 and its 200 day moving average is $32.74.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.58 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.02. CarGurus had a net margin of 15.57% and a return on equity of 54.42%. The business had revenue of $243.56 million during the quarter, compared to analysts' expectations of $243.10 million. During the same period last year, the company posted $0.46 earnings per share. The business'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. Sell-side analysts expect that CarGurus, Inc. will post 2.11 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

CARG has been the topic of a number of research analyst reports. Citigroup began coverage on shares of CarGurus in a research report on Friday, June 12th. They set a "buy" rating on the stock. Piper Sandler reissued a "sector weight" rating on shares of CarGurus in a research report on Friday, June 12th. JPMorgan Chase & Co. boosted 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. Royal Bank Of Canada boosted their price objective on CarGurus from $34.00 to $35.00 and gave the company an "outperform" rating in a research note on Monday, May 11th. Finally, Needham & Company LLC raised their target price on CarGurus from $37.00 to $43.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $38.55.

About CarGurus

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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