JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarGurus (NASDAQ:CARG) Stock

Key Points

• JPMorgan Chase & Co. has increased its target price for CarGurus (NASDAQ:CARG) from $38.00 to $43.00, indicating a potential upside of 26.51%.
• Analyst ratings for CarGurus vary, with one Strong Buy, six Buy, and eight Hold ratings, resulting in an average rating of "Moderate Buy".
• CarGurus reported a quarterly earnings per share of $0.57, surpassing the consensus estimate and showing a 7.0% year-over-year revenue growth.

CarGurus (NASDAQ:CARG - Get Free Report) had its target price increased by analysts at JPMorgan Chase & Co. from $38.00 to $43.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 26.51% from the company's previous close.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of CarGurus in a report on Wednesday, October 8th. Oppenheimer reduced their price objective on CarGurus from $42.00 to $40.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. BTIG Research reaffirmed a "buy" rating and set a $39.00 target price on shares of CarGurus in a research report on Friday, September 5th. UBS Group increased their price target on shares of CarGurus from $36.00 to $40.00 and gave the company a "neutral" rating in a report on Monday, October 6th. Finally, Zacks Research upgraded shares of CarGurus from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 6th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and eight 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 a consensus target price of $39.54.

CarGurus Stock Up 1.5%

NASDAQ CARG opened at $33.99 on Tuesday. The stock has a market capitalization of $3.37 billion, a PE ratio of 27.63, a price-to-earnings-growth ratio of 1.59 and a beta of 1.52. CarGurus has a 12-month low of $24.65 and a 12-month high of $41.33. The company has a 50 day moving average price of $34.79 and a two-hundred day moving average price of $32.28.

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

Insider Transactions at CarGurus

In other CarGurus news, COO Samuel Zales sold 10,000 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $36.08, for a total transaction of $360,800.00. Following the completion of the transaction, the chief operating officer owned 441,821 shares in the company, valued at $15,940,901.68. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Zachary Emerson Hallowell sold 1,733 shares of the company's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $33.84, for a total value of $58,644.72. Following the completion of the sale, the chief executive officer owned 117,045 shares in the company, valued at approximately $3,960,802.80. This represents a 1.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 31,731 shares of company stock valued at $1,126,971. Company insiders own 17.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Principal Financial Group Inc. increased its position in shares of CarGurus by 2.3% during the 1st quarter. Principal Financial Group Inc. now owns 482,484 shares of the company's stock worth $14,055,000 after purchasing an additional 10,787 shares in the last quarter. Intech Investment Management LLC grew its stake in CarGurus by 50.0% during the first quarter. Intech Investment Management LLC now owns 67,246 shares of the company's stock worth $1,959,000 after buying an additional 22,425 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of CarGurus by 1.0% during the first quarter. Vanguard Group Inc. now owns 9,780,608 shares of the company's stock worth $284,909,000 after buying an additional 93,722 shares in the last quarter. Bosman Wealth Management LLC bought a new position in shares of CarGurus in the first quarter valued at approximately $2,638,000. Finally, GAMMA Investing LLC boosted its holdings in shares of CarGurus by 35.4% in the 1st quarter. GAMMA Investing LLC now owns 4,196 shares of the company's stock worth $122,000 after acquiring an additional 1,097 shares in the last quarter. 86.90% of the stock is owned by institutional investors.

CarGurus Company 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.

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