CarGurus (NASDAQ:CARG) Stock Price Down 5.3% - Here's Why

Key Points

• CarGurus shares fell 5.3% to about $31.41 in midday trading, with volume 58% below the average session level.
• Despite the decline, analysts maintain a generally positive outlook: the stock has a “Moderate Buy” consensus rating and an average price target of $40.75.
• CarGurus exceeded quarterly expectations, reporting $0.66 in EPS versus $0.61 forecast and $250.97 million in revenue, up 7.2% year over year. However, insiders sold 71,943 shares worth approximately $2.6 million over the past 90 days.

CarGurus, Inc. (NASDAQ:CARG - Get Free Report)'s share price traded down 5.3% during trading on Tuesday . The stock traded as low as $31.42 and last traded at $31.4110. Approximately 512,816 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 1,221,052 shares. The stock had previously closed at $33.17.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. BTIG Research upped their target price on CarGurus from $40.00 to $41.00 and gave the company a "buy" rating in a research report on Friday, August 7th. B. Riley Financial reiterated a "buy" rating on shares of CarGurus in a research report on Friday, August 7th. Freedom Capital raised CarGurus to a "strong-buy" rating in a research note on Friday, June 12th. Piper Sandler restated a "sector weight" rating on shares of CarGurus in a report on Friday, June 12th. Finally, Weiss Ratings upgraded shares of CarGurus from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, CarGurus presently has an average rating of "Moderate Buy" and an average price target of $40.75.

CarGurus Stock Performance

The business's 50-day moving average is $35.47 and its two-hundred day moving average is $33.71. The stock has a market capitalization of $2.82 billion, a PE ratio of 17.17, a price-to-earnings-growth ratio of 1.18 and a beta of 1.16.

CarGurus (NASDAQ:CARG - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.66 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.05. The firm had revenue of $250.97 million for the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The firm's revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Equities analysts forecast that CarGurus, Inc. will post 2.17 EPS for the current year.

Insider Buying and Selling

In other CarGurus news, General Counsel Javier Zamora sold 6,205 shares of the business's stock in a transaction 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 completion of the transaction, the general counsel directly owned 80,260 shares in the company, valued at approximately $2,976,040.80. The trade was a 7.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Samuel Zales sold 10,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $34.62, for a total value of $346,200.00. Following the transaction, the chief operating officer directly owned 455,349 shares in the company, valued at approximately $15,764,182.38. This represents a 2.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 71,943 shares of company stock worth $2,584,936 in the last 90 days. 18.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of CarGurus during the second quarter worth about $43,000. Clearstead Advisors LLC grew its position in shares of 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 in the last quarter. Rockefeller Capital Management L.P. grew its position in shares of 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 in the last quarter. Global Retirement Partners LLC increased its stake in shares of CarGurus by 859.9% in the fourth quarter. Global Retirement Partners LLC now owns 2,323 shares of the company's stock worth $89,000 after buying an additional 2,081 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of CarGurus by 28.3% in the first quarter. EverSource Wealth Advisors LLC now owns 3,778 shares of the company's stock worth $129,000 after buying an additional 834 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company's stock.

CarGurus Company Profile

CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate pricing and vehicle details, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital advertising and marketing products designed to help them display inventory and reach prospective buyers.

The company also provides tools and services intended to support automotive retailers throughout the vehicle-shopping process, including inventory merchandising, lead generation, pricing insights and digital retail capabilities.

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