CarGurus (NASDAQ:CARG) Stock Price Up 12.7% – Here’s What Happened

CarGurus, Inc. (NASDAQ:CARG)’s stock price rose 12.7% during trading on Wednesday. The stock traded as high as $37.66 and last traded at $38.0470. Approximately 533,873 shares were traded during trading, a decline of 58% from the average daily volume of 1,264,451 shares. The stock had previously closed at $33.77.

Analyst Upgrades and Downgrades

CARG has been the subject of several analyst reports. B. Riley Financial reissued a “buy” rating on shares of CarGurus in a report on Friday, August 7th. Barclays decreased their price target on shares of CarGurus from $41.00 to $38.00 and set an “overweight” rating on the stock in a report on Tuesday, October 6th. Wall Street Zen raised CarGurus from a “hold” rating to a “buy” rating in a research note on Saturday. BTIG Research boosted their target price on CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Needham & Company LLC upped their target price on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $39.95.

CarGurus Stock Performance

The stock’s 50 day simple moving average is $32.22 and its 200 day simple moving average is $32.83. The firm has a market cap of $3.30 billion, a PE ratio of 20.14, a PEG ratio of 1.20 and a beta of 1.22.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $249.85 million. During the same quarter last year, the company posted $0.57 EPS. The business’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, analysts anticipate that CarGurus, Inc. will post 2.17 earnings per share for the current year.

Insider Activity

In other news, COO Samuel Zales sold 10,000 shares of the company’s stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $32.33, for a total value of $323,300.00. Following the completion of the transaction, the chief operating officer directly owned 419,735 shares in the company, valued at approximately $13,570,032.55. This represents a 2.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Quinn sold 3,824 shares of the stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $29.62, for a total value of $113,266.88. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 83,946 shares of company stock valued at $2,848,261. 18.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Congress Asset Management Co. grew its stake in shares of 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 last quarter. Bessemer Group Inc. increased its holdings in CarGurus by 18.2% during the 1st quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company’s stock valued at $36,945,000 after purchasing an additional 166,954 shares during the period. Bank of America Corp DE raised its position in CarGurus by 26.6% during the 1st quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock valued at $19,965,000 after purchasing an additional 123,364 shares during the last quarter. Principal Financial Group Inc. raised its position in CarGurus by 19.1% during the 1st quarter. Principal Financial Group Inc. now owns 573,406 shares of the company’s stock valued at $19,524,000 after purchasing an additional 91,755 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in CarGurus during the 2nd quarter valued at approximately $15,631,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

About CarGurus

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.