Needham & Company LLC Forecasts Strong Price Appreciation for CarGurus (NASDAQ:CARG) Stock

Key Points

• Needham & Company raised its price target on CarGurus from $37 to $43 and maintained a "buy" rating, implying roughly a 12.7% upside from the prior close.
• Q1 beat expectations with $0.58 EPS versus $0.56 consensus and ~$243.6M revenue; non‑GAAP EBITDA topped guidance and the company repurchased $175M of stock, while Q2 EPS guidance of $0.57–$0.64 was roughly in line with Street estimates.
• Analysts remain mixed—five Buy vs. eight Hold—resulting in a consensus "Hold" rating and an average target of $38.68, and insiders have recently sold shares.

CarGurus (NASDAQ:CARG - Get Free Report) had its price objective upped by Needham & Company LLC from $37.00 to $43.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price target would suggest a potential upside of 12.68% from the stock's previous close.

Several other research analysts have also issued reports on CARG. Oppenheimer lowered their target price on CarGurus from $40.00 to $38.00 and set an "outperform" rating for the company in a research report on Tuesday, February 24th. Royal Bank Of Canada decreased their price target on CarGurus from $40.00 to $34.00 and set an "outperform" rating for the company in a report on Friday, February 20th. BTIG Research decreased their price target on CarGurus from $44.00 to $37.00 and set a "buy" rating for the company in a report on Friday, February 20th. Wall Street Zen downgraded CarGurus from a "buy" rating to a "hold" rating in a report on Sunday, February 15th. Finally, DA Davidson decreased their price target on CarGurus from $37.50 to $33.50 and set a "neutral" rating for the company in a report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, CarGurus currently has an average rating of "Hold" and a consensus target price of $38.68.

CarGurus Stock Up 2.0%

Shares of NASDAQ:CARG opened at $38.16 on Friday. The firm has a market cap of $3.63 billion, a P/E ratio of 24.62, a P/E/G ratio of 1.40 and a beta of 1.28. CarGurus has a 12-month low of $26.39 and a 12-month high of $39.42. The business has a fifty day simple moving average of $34.59 and a 200 day simple moving average of $34.63.

CarGurus (NASDAQ:CARG - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $243.56 million during the quarter, compared to analyst estimates of $243.12 million. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.CarGurus's revenue for the quarter was up 8.2% compared to the same quarter last year. During the same period last year, the company earned $0.46 EPS. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, equities research analysts expect that CarGurus will post 2.06 EPS for the current year.

Insider Transactions at CarGurus

In other news, CMO Dafna Sarnoff sold 5,445 shares of the firm's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total value of $179,902.80. Following the completion of the sale, the chief marketing officer directly owned 134,369 shares in the company, valued at $4,439,551.76. This trade represents a 3.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of the firm's stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $35.61, for a total value of $88,989.39. Following the completion of the sale, the insider owned 98,191 shares of the company's stock, valued at approximately $3,496,581.51. This represents a 2.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 12,852 shares of company stock valued at $431,053. 16.99% of the stock is currently owned by corporate insiders.

Institutional Trading of CarGurus

Several large investors have recently made changes to their positions in CARG. UBS Group AG lifted its position in CarGurus by 158.2% in the 3rd quarter. UBS Group AG now owns 1,537,856 shares of the company's stock valued at $57,254,000 after acquiring an additional 942,199 shares in the last quarter. Wellington Management Group LLP lifted its position in CarGurus by 6.6% in the 3rd quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company's stock valued at $358,773,000 after acquiring an additional 594,670 shares in the last quarter. William Blair Investment Management LLC bought a new position in CarGurus in the 4th quarter valued at about $21,756,000. Northwestern Mutual Wealth Management Co. lifted its position in CarGurus by 159,137.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 536,629 shares of the company's stock valued at $22,787,000 after acquiring an additional 536,292 shares in the last quarter. Finally, Prevatt Capital Ltd lifted its position in CarGurus by 28.1% in the 3rd quarter. Prevatt Capital Ltd now owns 2,050,000 shares of the company's stock valued at $76,322,000 after acquiring an additional 450,000 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q1 beat on EPS and came in roughly in line on revenue — CarGurus reported EPS of $0.58 vs. a $0.56 consensus and revenue near ~$244M, demonstrating year‑over‑year top‑line growth and an earnings beat that supports valuation. CarGurus (CARG) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Operating performance and capital returns were strong — non‑GAAP adjusted EBITDA exceeded the high end of guidance and the company repurchased $175M of stock in Q1 (repurchases since Dec 2022 equal ~29% of shares outstanding), which supports EPS and is shareholder‑friendly. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Marketing/brand initiatives that could boost traffic and dealer demand — CarGurus launched promotional programs including the inaugural Confidence Awards and a NASCAR/Canada push that may increase consumer engagement and international monetization over time. CarGurus’ NASCAR Canada Push and Confidence Awards Could Be A Game Changer CarGurus Recognizes the Top New Cars of 2026
• Neutral Sentiment: Guidance was roughly in line with expectations — Q2 EPS was set at $0.57–$0.64 and revenue at $247M–$252M, close to Street estimates, so investors see limited upside from guidance alone. Q1 press release / guidance slide deck
• Negative Sentiment: GAAP net income declined year‑over‑year — Q1 GAAP net income from continuing operations fell ~23% YoY, a reminder that non‑GAAP strength can mask GAAP volatility and margins. CarGurus Announces First Quarter 2026 Results
• Negative Sentiment: Mixed market reaction right after the print — some outlets reported an initial stock drop despite the beat, reflecting investor focus on the details of guidance, GAAP results, and near‑term growth cadence. CarGurus posts Q1 sales in line but stock drops

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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