CarGurus (NASDAQ:CARG) Stock Price Up 6.8% – Should You Buy?

CarGurus, Inc. (NASDAQ:CARG) shares traded up 6.8% during trading on Tuesday . The company traded as high as $33.18 and last traded at $33.1770. 627,714 shares changed hands during trading, a decline of 50% from the average session volume of 1,254,048 shares. The stock had previously closed at $31.06.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. DA Davidson decreased their target price on CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Needham & Company LLC lowered their price objective on CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research report on Thursday, February 5th. Wall Street Zen lowered CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. Weiss Ratings reissued a “hold (c+)” rating on shares of CarGurus in a report on Monday, December 29th. Finally, BTIG Research reduced their price objective on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, CarGurus presently has a consensus rating of “Hold” and an average target price of $38.14.

CarGurus Stock Performance

The company has a 50-day moving average of $32.06 and a 200 day moving average of $34.76. The firm has a market cap of $3.17 billion, a P/E ratio of 21.47, a P/E/G ratio of 1.16 and a beta of 1.37.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings results on Thursday, February 19th. The company reported $0.63 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.02. The firm had revenue of $209.09 million for the quarter, compared to analysts’ expectations of $239.07 million. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The business’s revenue was up 14.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.55 earnings per share. CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. Sell-side analysts anticipate that CarGurus, Inc. will post 1.41 EPS for the current fiscal year.

Insider Activity

In other news, insider Jennifer Ladd Hanson sold 2,358 shares of the firm’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $38.10, for a total transaction of $89,839.80. Following the completion of the sale, the insider owned 50,466 shares of the company’s stock, valued at approximately $1,922,754.60. This trade represents a 4.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Stephen Kaufer bought 30,766 shares of CarGurus stock in a transaction dated Tuesday, March 3rd. The stock was acquired at an average cost of $32.50 per share, for a total transaction of $999,895.00. Following the completion of the acquisition, the director directly owned 323,939 shares in the company, valued at $10,528,017.50. This represents a 10.49% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders sold 29,003 shares of company stock valued at $1,118,494. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On CarGurus

A number of hedge funds and other institutional investors have recently bought and sold shares of CARG. JPMorgan Chase & Co. increased its stake in shares of CarGurus by 17.8% in the third quarter. JPMorgan Chase & Co. now owns 545,636 shares of the company’s stock valued at $20,314,000 after buying an additional 82,511 shares in the last quarter. Aurora Investment Counsel bought a new stake in CarGurus during the 3rd quarter worth about $2,174,000. Jupiter Asset Management Ltd. increased its position in CarGurus by 230.6% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 580,117 shares of the company’s stock valued at $21,598,000 after acquiring an additional 404,617 shares in the last quarter. Congress Asset Management Co. bought a new position in shares of CarGurus in the third quarter worth about $70,856,000. Finally, Envestnet Asset Management Inc. lifted its position in shares of CarGurus by 100.3% during the third quarter. Envestnet Asset Management Inc. now owns 102,818 shares of the company’s stock worth $3,828,000 after purchasing an additional 51,487 shares in the last quarter. 86.90% of the stock is owned by institutional investors and hedge funds.

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.