CarGurus (NASDAQ:CARG) Shares Cross Above Fifty Day Moving Average – What’s Next?

CarGurus, Inc. (NASDAQ:CARG)’s stock price crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $32.45 and traded as high as $32.75. CarGurus shares last traded at $32.50, with a volume of 1,169,132 shares trading hands.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Weiss Ratings cut CarGurus from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, October 23rd. BTIG Research boosted their price objective on CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Royal Bank Of Canada upped their price objective on CarGurus from $35.00 to $42.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Needham & Company LLC increased their target price on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of CarGurus in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $39.95.

CarGurus Stock Performance

The business’s 50 day simple moving average is $32.45 and its 200-day simple moving average is $32.88. The stock has a market capitalization of $2.89 billion, a price-to-earnings ratio of 17.66, a price-to-earnings-growth ratio of 1.11 and a beta of 1.22.

CarGurus (NASDAQ:CARG) last posted its earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.61 by $0.05. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The firm had revenue of $250.97 million during the quarter, compared to analysts’ expectations of $249.85 million. During the same quarter in the prior year, the firm earned $0.57 EPS. CarGurus’s quarterly revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, sell-side analysts expect that CarGurus, Inc. will post 2.17 EPS for the current year.

Insider Buying and Selling at CarGurus

In related news, Director Greg M. Schwartz sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $36.07, for a total value of $360,700.00. Following the sale, the director directly owned 8,716 shares in the company, valued at $314,386.12. This trade represents a 53.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Samuel Zales sold 10,000 shares of CarGurus stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $34.62, for a total value of $346,200.00. Following the sale, the chief operating officer directly owned 455,349 shares in the company, valued at $15,764,182.38. The trade was a 2.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 78,187 shares of company stock valued at $2,691,547. 18.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Prevatt Capital Ltd increased its holdings in shares of CarGurus by 12.5% during the first quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company’s stock valued at $84,274,000 after purchasing an additional 275,000 shares during the period. Congress Asset Management Co. lifted its holdings in CarGurus by 7.6% in the third quarter. Congress Asset Management Co. now owns 2,125,686 shares of the company’s stock worth $66,236,000 after purchasing an additional 149,338 shares during the period. Bessemer Group Inc. lifted its holdings in CarGurus by 18.2% in the first quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company’s stock worth $36,945,000 after purchasing an additional 166,954 shares during the period. Bank of America Corp DE lifted its holdings in CarGurus by 26.6% in the first quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock worth $19,965,000 after purchasing an additional 123,364 shares during the period. Finally, Principal Financial Group Inc. grew its position in CarGurus by 19.1% in the 1st quarter. Principal Financial Group Inc. now owns 573,406 shares of the company’s stock valued at $19,524,000 after buying an additional 91,755 shares in the last quarter. Institutional investors 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 vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers.

The company also offers tools intended to support automotive retailers’ online operations, including inventory merchandising, lead generation and digital retailing capabilities.