Analysts Set CarGurus, Inc. (NASDAQ:CARG) Price Target at $40.86

Shares of CarGurus, Inc. (NASDAQ:CARG) have earned a consensus recommendation of “Hold” from the thirteen ratings firms that are currently covering the firm, MarketBeat reports. Eight equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $40.8636.

CARG has been the subject of a number of research analyst reports. BTIG Research raised their price target on CarGurus from $39.00 to $44.00 and gave the stock a “buy” rating in a research note on Tuesday, December 30th. Zacks Research downgraded CarGurus from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 16th. Jefferies Financial Group upped their price target on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Wall Street Zen downgraded shares of CarGurus from a “buy” rating to a “hold” rating in a research note on Saturday, January 3rd. Finally, Citigroup boosted their price objective on shares of CarGurus from $37.00 to $41.00 and gave the company a “neutral” rating in a research report on Tuesday, October 28th.

CarGurus Stock Down 1.6%

CARG stock opened at $34.17 on Thursday. CarGurus has a twelve month low of $24.65 and a twelve month high of $41.33. The stock has a market capitalization of $3.26 billion, a price-to-earnings ratio of 23.24, a price-to-earnings-growth ratio of 1.39 and a beta of 1.36. The firm’s fifty day simple moving average is $36.79 and its two-hundred day simple moving average is $35.33.

CarGurus (NASDAQ:CARG) last released its quarterly earnings results on Thursday, November 6th. The company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.02. CarGurus had a net margin of 16.41% and a return on equity of 41.31%. The firm had revenue of $238.70 million during the quarter, compared to analysts’ expectations of $234.57 million. During the same period in the previous year, the company earned $0.45 EPS. The firm’s revenue for the quarter was up 3.2% compared to the same quarter last year. CarGurus has set its FY 2025 guidance at 2.190-2.250 EPS and its Q4 2025 guidance at 0.610-0.670 EPS. As a group, equities research analysts expect that CarGurus will post 1.41 EPS for the current year.

Insider Transactions at CarGurus

In other news, CEO Jason Trevisan sold 16,548 shares of the firm’s stock in a transaction 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 transaction, the chief executive officer owned 630,483 shares in the company, valued at approximately $24,601,446.66. This trade represents a 2.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Samuel Zales sold 10,000 shares of CarGurus stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the chief operating officer owned 410,259 shares of the company’s stock, valued at $14,350,859.82. The trade was a 2.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 58,586 shares of company stock worth $2,198,264 over the last three months. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On CarGurus

Several large investors have recently modified their holdings of CARG. Congress Asset Management Co. purchased a new stake in shares of CarGurus in the 3rd quarter worth approximately $70,856,000. UBS Group AG raised its stake in CarGurus by 158.2% in the third quarter. UBS Group AG now owns 1,537,856 shares of the company’s stock worth $57,254,000 after buying an additional 942,199 shares in the last quarter. Wellington Management Group LLP lifted 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 worth $358,773,000 after buying an additional 594,670 shares during the period. Prevatt Capital Ltd boosted its position in CarGurus by 28.1% during the 3rd quarter. Prevatt Capital Ltd now owns 2,050,000 shares of the company’s stock valued at $76,322,000 after acquiring an additional 450,000 shares in the last quarter. Finally, Divisadero Street Capital Management LP purchased a new position in shares of CarGurus in the 2nd quarter valued at $14,599,000. Institutional investors own 86.90% of the company’s stock.

About CarGurus

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.