CarGurus (NASDAQ:CARG) Price Target Cut to $41.00 by Analysts at Royal Bank Of Canada

CarGurus (NASDAQ:CARG) had its target price decreased by Royal Bank Of Canada from $42.00 to $41.00 in a research report sent to investors on Friday,Benzinga reports. Royal Bank Of Canada currently has an outperform rating on the stock.

CARG has been the topic of several other reports. B. Riley Financial reiterated a “buy” rating on shares of CarGurus in a research report on Friday, August 7th. Oppenheimer lifted 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. BTIG Research upped their price objective on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Weiss Ratings downgraded shares of CarGurus from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 23rd. Finally, Barclays cut their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, CarGurus presently has a consensus rating of “Moderate Buy” and a consensus target price of $39.85.

CarGurus Price Performance

CARG stock traded down $2.41 during midday trading on Friday, hitting $33.74. The stock had a trading volume of 2,581,082 shares, compared to its average volume of 1,483,843. The firm has a market cap of $3.01 billion, a PE ratio of 17.04, a price-to-earnings-growth ratio of 1.20 and a beta of 1.22. CarGurus has a 12-month low of $26.39 and a 12-month high of $41.22. The company’s 50-day moving average price is $32.17 and its 200 day moving average price is $32.85.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.04. CarGurus had a return on equity of 62.88% and a net margin of 18.06%. The company had revenue of $258.37 million for the quarter, compared to analyst estimates of $256.46 million. During the same quarter in the prior year, the company posted $0.57 EPS. The business’s revenue for the quarter was up 8.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that CarGurus will post 2.17 EPS for the current year.

Insider Buying and Selling

In other news, CTO Matthew Quinn sold 3,824 shares of CarGurus stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $29.62, for a total value of $113,266.88. Following the transaction, the chief technology officer directly owned 220,193 shares of the company’s stock, valued at $6,522,116.66. The trade was a 1.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ismail Elshareef sold 2,673 shares of the business’s stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $29.62, for a total value of $79,174.26. Following the sale, the insider owned 127,933 shares of the company’s stock, valued at $3,789,375.46. The trade was a 2.05% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 82,846 shares of company stock worth $2,803,095. Corporate insiders own 18.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CARG. Russell Investments Group Ltd. increased its position in shares of CarGurus by 14.9% in the third quarter. Russell Investments Group Ltd. now owns 277,349 shares of the company’s stock worth $8,642,000 after acquiring an additional 35,876 shares in the last quarter. Eurizon Capital SGR S.p.A. acquired a new position in shares of CarGurus during the 3rd quarter valued at $25,000. Gagnon Securities LLC boosted its position in CarGurus by 0.4% during the 3rd quarter. Gagnon Securities LLC now owns 368,573 shares of the company’s stock worth $11,485,000 after purchasing an additional 1,500 shares during the period. Maryland State Retirement & Pension System boosted its position in CarGurus by 53.6% during the 3rd quarter. Maryland State Retirement & Pension System now owns 16,892 shares of the company’s stock worth $526,000 after purchasing an additional 5,896 shares during the period. Finally, Ritholtz Wealth Management boosted its position in CarGurus by 8.5% during the 3rd quarter. Ritholtz Wealth Management now owns 12,827 shares of the company’s stock worth $400,000 after purchasing an additional 1,003 shares during the period. 86.90% of the stock is owned by institutional investors and hedge funds.

More CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Third-quarter revenue increased 12% year over year to $258 million, slightly topping estimates, while adjusted EPS of $0.70 beat the $0.66 consensus. Adjusted EBITDA was $89.7 million, near the high end of the company’s guidance range. CarGurus Announces Third Quarter 2026 Results
• Positive Sentiment: The board authorized a $250 million share-repurchase program, which could support per-share results and signal confidence in the business. CarGurus Announces Third Quarter 2026 Results
• Positive Sentiment: Paying U.S. dealers using CarGurus products beyond listings grew 16% year over year, suggesting continued traction in additional dealer services. CarGurus: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Royal Bank of Canada lowered its price target from $42 to $41 but kept its “outperform” rating, retaining a favorable view while trimming its valuation outlook. Royal Bank of Canada recommendations
• Negative Sentiment: Despite the quarterly beats, CarGurus’ revenue guidance for the next quarter came in slightly below expectations. That softer outlook is the clearest potential explanation for the stock’s weakness. Q3 sales beat estimates but quarterly revenue guidance slightly misses expectations

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.