CarGurus (NASDAQ:CARG) Sees Large Volume Increase – Still a Buy?

CarGurus, Inc. (NASDAQ:CARG) saw unusually-strong trading volume on Monday . Approximately 1,467,110 shares were traded during mid-day trading, an increase of 20% from the previous session’s volume of 1,221,802 shares.The stock last traded at $29.7390 and had previously closed at $28.67.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on CARG shares. Royal Bank Of Canada boosted their price objective on shares of CarGurus from $34.00 to $35.00 and gave the company an “outperform” rating in a research report on Monday, May 11th. BTIG Research reduced their price objective on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research report on Friday, February 20th. Needham & Company LLC boosted their price objective on shares of CarGurus from $37.00 to $43.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Wall Street Zen raised shares of CarGurus from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Finally, DA Davidson reduced their price objective on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, CarGurus presently has a consensus rating of “Hold” and an average price target of $38.23.

CarGurus Trading Up 1.2%

The firm has a market cap of $2.62 billion, a P/E ratio of 19.06, a PEG ratio of 1.07 and a beta of 1.28. The company’s 50 day simple moving average is $34.57 and its 200-day simple moving average is $34.44.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The business had revenue of $243.56 million for the quarter, compared to analysts’ expectations of $243.10 million. CarGurus had a net margin of 15.57% and a return on equity of 54.42%. The business’s revenue was up 8.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.46 earnings per share. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. On average, sell-side analysts anticipate that CarGurus, Inc. will post 2.06 earnings per share for the current year.

Insider Buying and Selling at CarGurus

In other news, CTO Matthew Todd Quinn sold 4,341 shares of the firm’s stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total value of $143,426.64. Following the completion of the transaction, the chief technology officer owned 246,098 shares in the company, valued at $8,131,077.92. This trade represents a 1.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 5,445 shares of CarGurus stock in a transaction dated Thursday, April 2nd. The shares were 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 owned 134,369 shares of the company’s stock, valued at $4,439,551.76. This trade represents 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 three months, insiders have sold 12,852 shares of company stock worth $431,053. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CARG. Brown Brothers Harriman & Co. acquired a new position in CarGurus during the third quarter worth about $46,000. Torren Management LLC acquired a new stake in CarGurus in the 4th quarter valued at approximately $49,000. EverSource Wealth Advisors LLC increased 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 acquiring an additional 1,362 shares during the period. Nisa Investment Advisors LLC boosted its stake in shares of CarGurus by 20.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,864 shares of the company’s stock valued at $69,000 after purchasing an additional 321 shares in the last quarter. Finally, Clearstead Advisors LLC raised its stake in CarGurus by 321.2% in the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company’s stock valued at $82,000 after buying an additional 1,622 shares during the period. 86.90% of the stock is owned by institutional investors and hedge funds.

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.