CarGurus, Inc. (NASDAQ:CARG) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of CarGurus, Inc. (NASDAQ:CARG) have been given a consensus rating of “Moderate Buy” by the fourteen ratings firms that are currently covering the firm, Marketbeat reports. Six investment analysts have rated the stock with a hold recommendation, seven have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokers that have covered the stock in the last year is $38.55.

Several research firms recently weighed in on CARG. JPMorgan Chase & Co. boosted their price objective on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research report on Friday, May 8th. Royal Bank Of Canada raised their target price on CarGurus from $34.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, May 11th. Needham & Company LLC lifted their price target on CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Citigroup began coverage on CarGurus in a research report on Friday, June 12th. They issued a “buy” rating for the company. Finally, Piper Sandler restated a “sector weight” rating on shares of CarGurus in a research note on Friday, June 12th.

CarGurus Price Performance

Shares of CARG opened at $36.24 on Monday. The company has a market capitalization of $3.27 billion, a PE ratio of 23.84, a price-to-earnings-growth ratio of 1.32 and a beta of 1.17. CarGurus has a one year low of $26.39 and a one year high of $39.42. The company’s fifty day moving average price is $32.03 and its 200 day moving average price is $32.56.

CarGurus (NASDAQ:CARG) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The company had revenue of $243.56 million during 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 quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.46 earnings per share. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Analysts anticipate that CarGurus will post 2.11 earnings per share for the current year.

Insider Activity at CarGurus

In other CarGurus news, General Counsel Javier Zamora sold 8,072 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $29.53, for a total value 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 $3,043,391.33. This represents a 7.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jennifer Ladd Hanson sold 2,499 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $34.56, for a total transaction of $86,365.44. Following the completion of the sale, the insider owned 92,894 shares in the company, valued at $3,210,416.64. This represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 25,559 shares of company stock worth $841,568 in the last ninety days. 18.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CarGurus

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP raised its holdings in CarGurus by 6.6% in the 3rd quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock valued at $358,773,000 after acquiring an additional 594,670 shares in the last quarter. Prevatt Capital Ltd grew its holdings in shares of CarGurus by 12.5% during the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company’s stock worth $84,274,000 after purchasing an additional 275,000 shares in the last quarter. Geode Capital Management LLC increased its position in shares of CarGurus by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company’s stock valued at $80,602,000 after purchasing an additional 24,910 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of CarGurus by 0.3% during the second quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company’s stock valued at $64,093,000 after purchasing an additional 6,676 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of CarGurus by 11.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,888,766 shares of the company’s stock valued at $70,319,000 after purchasing an additional 188,856 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors.

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.