CarGurus (NASDAQ:CARG) Shares Down 5.9% – Should You Sell?

Shares of CarGurus, Inc. (NASDAQ:CARG) were down 5.9% during trading on Tuesday . The company traded as low as $35.91 and last traded at $36.4140. Approximately 383,064 shares traded hands during trading, a decline of 45% from the average daily volume of 699,767 shares. The stock had previously closed at $38.71.

Analyst Upgrades and Downgrades

A number of analysts recently commented on CARG shares. DA Davidson set a $37.50 target price on shares of CarGurus in a report on Monday, November 17th. UBS Group upped their price target on CarGurus from $36.00 to $40.00 and gave the company a “neutral” rating in a report on Monday, October 6th. Jefferies Financial Group increased their price objective on CarGurus from $42.00 to $45.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. JPMorgan Chase & Co. boosted their target price on CarGurus from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 14th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of CarGurus in a research report on Monday, December 29th. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, CarGurus presently has an average rating of “Hold” and an average price target of $40.86.

CarGurus Price Performance

The company has a market cap of $3.47 billion, a price-to-earnings ratio of 24.71, a P/E/G ratio of 1.58 and a beta of 1.36. The firm has a fifty day simple moving average of $36.70 and a 200 day simple moving average of $35.28.

CarGurus (NASDAQ:CARG) last released its earnings results on Thursday, November 6th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.02. The firm had revenue of $238.70 million for the quarter, compared to analyst estimates of $234.57 million. CarGurus had a return on equity of 41.31% and a net margin of 16.41%.The company’s revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.45 EPS. CarGurus has set its FY 2025 guidance at 2.190-2.250 EPS and its Q4 2025 guidance at 0.610-0.670 EPS. Analysts expect that CarGurus, Inc. will post 1.41 earnings per share for the current year.

Insider Activity at CarGurus

In other news, CEO Jason Trevisan sold 16,548 shares of CarGurus stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $39.02, for a total transaction of $645,702.96. Following the sale, the chief executive officer owned 630,483 shares of the company’s stock, valued at approximately $24,601,446.66. This trade represents a 2.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Samuel Zales sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the sale, the chief operating officer owned 410,259 shares in the company, valued at approximately $14,350,859.82. This represents a 2.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 68,586 shares of company stock worth $2,547,464 in the last three months. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On CarGurus

Hedge funds have recently made changes to their positions in the business. Congress Asset Management Co. acquired a new stake in shares of CarGurus during the 3rd quarter valued at about $70,856,000. UBS Group AG lifted its stake in CarGurus by 158.2% during the third quarter. UBS Group AG now owns 1,537,856 shares of the company’s stock worth $57,254,000 after purchasing an additional 942,199 shares during the period. Wellington Management Group LLP boosted its holdings in CarGurus by 6.6% during the third quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock valued at $358,773,000 after purchasing an additional 594,670 shares in the last quarter. Prevatt Capital Ltd grew its stake in shares of CarGurus by 28.1% in the 3rd quarter. Prevatt Capital Ltd now owns 2,050,000 shares of the company’s stock valued at $76,322,000 after purchasing an additional 450,000 shares during the period. Finally, Divisadero Street Capital Management LP bought a new position in shares of CarGurus during the 2nd quarter worth approximately $14,599,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

CarGurus Company Profile

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.