CarGurus (NASDAQ:CARG) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of CarGurus (NASDAQ:CARG) from a buy rating to a hold rating in a report published on Saturday morning,Wall Street Zen reports.

Other research analysts also recently issued research reports about the company. Barclays increased their target price on CarGurus from $40.00 to $41.00 and gave the company an “overweight” rating in a report on Monday, August 10th. BTIG Research upped their target price on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a report on Friday, August 7th. B. Riley Financial reiterated a “buy” rating on shares of CarGurus in a research note on Friday, August 7th. Freedom Capital raised CarGurus to a “strong-buy” rating in a report on Friday, June 12th. Finally, Oppenheimer boosted their price target on CarGurus from $38.00 to $44.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $40.75.

CarGurus Stock Performance

Shares of NASDAQ:CARG opened at $29.35 on Friday. The firm has a market cap of $2.61 billion, a price-to-earnings ratio of 15.95, a price-to-earnings-growth ratio of 1.07 and a beta of 1.22. The business has a 50-day simple moving average of $34.69 and a two-hundred day simple moving average of $33.58. CarGurus has a fifty-two week low of $26.39 and a fifty-two week high of $41.22.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $249.85 million. During the same period in the previous year, the business posted $0.57 earnings per share. The business’s revenue for the quarter 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, research analysts predict that CarGurus will post 2.17 earnings per share for the current year.

Insiders Place Their Bets

In other news, CTO Matthew Quinn sold 3,824 shares of CarGurus stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $29.62, for a total transaction of $113,266.88. Following the sale, the chief technology officer owned 220,193 shares in the company, valued at $6,522,116.66. This trade represents a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 17,151 shares of CarGurus stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $37.00, for a total transaction of $634,587.00. Following the completion of the sale, the chief marketing officer owned 109,668 shares in the company, valued at approximately $4,057,716. This represents a 13.52% 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 68,187 shares of company stock worth $2,388,447 over the last ninety days. 18.19% of the stock is owned by company insiders.

Institutional Trading of CarGurus

Large investors have recently added to or reduced their stakes in the company. Lazard Asset Management LLC raised its position in shares of CarGurus by 180.8% during the 1st quarter. Lazard Asset Management LLC now owns 445,868 shares of the company’s stock valued at $15,182,000 after buying an additional 287,067 shares in the last quarter. Bank of America Corp DE increased its stake in CarGurus by 26.6% during the first quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock worth $19,965,000 after acquiring an additional 123,364 shares during the last quarter. RFG Advisory LLC purchased a new stake in CarGurus during the second quarter valued at approximately $1,421,000. Louisiana State Employees Retirement System bought a new stake in shares of CarGurus in the 1st quarter valued at approximately $1,226,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of CarGurus in the 2nd quarter valued at approximately $15,631,000. Institutional investors own 86.90% of the company’s stock.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus launched VINMax, a vehicle-identification-number-based offering intended to expand the company’s automotive marketplace and dealer products. Analysts cited in the report have a price target of approximately $40.75, implying meaningful upside from recent trading levels. CarGurus launches VINMax as analysts target CarGurus stock at USD 40.75
• Neutral Sentiment: A review comparing CarGurus and Reddit provides general investment analysis but does not identify a major new catalyst likely to materially change CARG’s outlook. Reviewing CarGurus and Reddit
• Neutral Sentiment: CarGurus Chief People Officer filings reported share withholding to cover taxes on restricted stock units. This is generally an administrative transaction rather than a discretionary bearish investment decision. CarGurus Chief People Officer Reports Share Withholding for RSU Tax Payments
• Negative Sentiment: Three executives sold a combined 13,731 shares for roughly $406,700 at an average price of $29.62. The transactions involved the CTO, CMO and another insider, which may weigh on sentiment; however, all were executed under pre-arranged Rule 10b5-1 plans, reducing their significance as a signal of deteriorating business conditions. CarGurus insider transaction filing
• Negative Sentiment: CMO Dafna Sarnoff separately filed to sell 7,234 Class A shares, reinforcing the near-term insider-selling narrative, although the filing itself does not necessarily indicate a change in the company’s fundamentals. CarGurus Officer Dafna Sarnoff Files Form 144 to Sell Shares

CarGurus Company Profile

CarGurus, Inc is a digital automotive marketplace that connects consumers with dealerships and private sellers offering new and used vehicles. Its platform enables shoppers to search vehicle listings, compare prices and features, review dealership information, and evaluate vehicle deals using data-driven tools. CarGurus generates revenue primarily by providing automotive dealers with listing, advertising, and other digital marketing services.

The company also offers products designed to help dealers attract shoppers, manage vehicle listings, and support the online and in-person vehicle-buying process.