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

Shares of CarGurus, Inc. (NASDAQ:CARG) traded up 6.4% during trading on Tuesday . The company traded as high as $29.65 and last traded at $29.7240. 119,449 shares traded hands during trading, a decline of 91% from the average session volume of 1,281,519 shares. The stock had previously closed at $27.94.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Oppenheimer cut their target price on shares of CarGurus from $40.00 to $38.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. Needham & Company LLC boosted their target price on shares of CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Piper Sandler reissued a “sector weight” rating on shares of CarGurus in a research note on Friday. Barclays initiated coverage on shares of CarGurus in a research note on Thursday, May 28th. They set an “overweight” rating and a $35.00 target price for the company. Finally, Citigroup initiated coverage on shares of CarGurus in a research note on Friday. They issued a “buy” rating on the stock. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, CarGurus currently has an average rating of “Moderate Buy” and a consensus price target of $37.79.

CarGurus Trading Up 8.3%

The company has a fifty day simple moving average of $32.34 and a two-hundred day simple moving average of $33.48. The company has a market cap of $2.73 billion, a PE ratio of 19.93, a P/E/G ratio of 0.99 and a beta of 1.20.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $243.56 million during the quarter, compared to the consensus estimate of $243.10 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.CarGurus’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.46 EPS. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. On average, research analysts anticipate that CarGurus, Inc. will post 2.11 EPS for the current fiscal year.

Insider Buying and Selling

In other CarGurus news, General Counsel Javier Zamora sold 8,072 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $29.53, for a total transaction of $238,366.16. Following the completion of the sale, the general counsel directly owned 103,061 shares of the company’s stock, valued at approximately $3,043,391.33. This trade represents a 7.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Dafna Sarnoff sold 5,445 shares of the stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total value of $179,902.80. Following the sale, the chief marketing officer directly owned 134,369 shares of the company’s stock, valued at $4,439,551.76. The trade was a 3.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 20,924 shares of company stock valued at $669,419 over the last 90 days. Insiders own 17.20% of the company’s stock.

Institutional Trading of CarGurus

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Horizon Investments LLC boosted its holdings in shares of CarGurus by 2.0% in the fourth quarter. Horizon Investments LLC now owns 16,375 shares of the company’s stock valued at $628,000 after acquiring an additional 318 shares in the last quarter. ProShare Advisors LLC boosted its holdings in shares of CarGurus by 2.8% in the fourth quarter. ProShare Advisors LLC now owns 15,992 shares of the company’s stock valued at $613,000 after acquiring an additional 436 shares in the last quarter. Ritholtz Wealth Management boosted its holdings in shares of CarGurus by 4.2% in the first quarter. Ritholtz Wealth Management now owns 11,039 shares of the company’s stock valued at $376,000 after acquiring an additional 449 shares in the last quarter. HighTower Advisors LLC boosted its holdings in shares of CarGurus by 7.8% in the fourth quarter. HighTower Advisors LLC now owns 7,094 shares of the company’s stock valued at $272,000 after acquiring an additional 514 shares in the last quarter. Finally, Illinois Municipal Retirement Fund boosted its holdings in shares of CarGurus by 1.6% in the fourth quarter. Illinois Municipal Retirement Fund now owns 43,583 shares of the company’s stock valued at $1,671,000 after acquiring an additional 679 shares in the last quarter. 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.