CarGurus (NASDAQ:CARG) Trading 6.4% Higher – Should You Buy?

CarGurus, Inc. (NASDAQ:CARG)’s stock price was up 6.4% on Tuesday . The stock traded as high as $29.65 and last traded at $29.7240. Approximately 119,449 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 1,281,519 shares. The stock had previously closed at $27.94.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on CARG shares. Citigroup started coverage on shares of CarGurus in a report on Friday. They issued a “buy” rating on the stock. Oppenheimer lowered their target price on shares of CarGurus from $40.00 to $38.00 and set an “outperform” rating on the stock in a report on Tuesday, February 24th. BTIG Research cut their price target on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a report on Friday, February 20th. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a report on Friday. Finally, DA Davidson cut their price target on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating for the company in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $37.79.

CarGurus Stock Performance

The firm’s 50-day moving average is $32.34 and its 200 day moving average is $33.48. The firm has a market capitalization of $2.73 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 0.99 and a beta of 1.20.

CarGurus (NASDAQ:CARG) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.58 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $243.10 million. During the same period in the previous year, the firm earned $0.46 EPS. The business’s revenue for the quarter was up 8.2% compared to the same quarter last year. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, equities analysts anticipate that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Insider Buying and Selling

In related news, General Counsel Javier Zamora sold 8,072 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $29.53, for a total transaction of $238,366.16. Following the transaction, the general counsel owned 103,061 shares of the company’s stock, valued at approximately $3,043,391.33. This represents a 7.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CMO Dafna Sarnoff sold 5,445 shares of the company’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the transaction, the chief marketing officer directly owned 134,369 shares in the company, valued at $4,439,551.76. The trade was a 3.89% 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. In the last 90 days, insiders have sold 20,924 shares of company stock worth $669,419. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarGurus

Institutional investors and hedge funds have recently modified their holdings of the company. Brown Brothers Harriman & Co. purchased a new position in shares of CarGurus during the third quarter valued at approximately $46,000. Torren Management LLC purchased a new position in CarGurus during the fourth quarter worth about $49,000. EverSource Wealth Advisors LLC lifted its position 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 period. Clearstead Advisors LLC lifted its position 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 period. Finally, Rockefeller Capital Management L.P. lifted its position 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 period. Hedge funds and other institutional investors own 86.90% of the company’s stock.

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.