Needham & Company LLC Issues Pessimistic Forecast for CarGurus (NASDAQ:CARG) Stock Price

CarGurus (NASDAQ:CARG) had its price objective decreased by investment analysts at Needham & Company LLC from $44.00 to $37.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the stock. Needham & Company LLC’s price target suggests a potential upside of 27.81% from the stock’s previous close.

Several other brokerages have also recently weighed in on CARG. Jefferies Financial Group upped their price objective on shares of CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a research note on Thursday, December 11th. Zacks Research lowered CarGurus from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 16th. Weiss Ratings restated a “hold (c+)” rating on shares of CarGurus in a report on Monday, December 29th. JPMorgan Chase & Co. raised their target price on CarGurus from $38.00 to $43.00 and gave the company a “neutral” rating in a research note on Tuesday, October 14th. Finally, Wall Street Zen downgraded shares of CarGurus from a “buy” rating to a “hold” rating in a research report on Saturday, January 3rd. Five research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $40.23.

CarGurus Price Performance

Shares of CARG stock opened at $28.95 on Thursday. The stock’s fifty day simple moving average is $36.23 and its 200 day simple moving average is $35.22. CarGurus has a one year low of $24.65 and a one year high of $40.37. The firm has a market cap of $2.76 billion, a price-to-earnings ratio of 19.69, a P/E/G ratio of 1.20 and a beta of 1.35.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings data 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. CarGurus had a return on equity of 41.31% and a net margin of 16.41%.The company had revenue of $238.70 million during the quarter, compared to analysts’ expectations of $234.57 million. During the same period last year, the business earned $0.45 earnings per share. The business’s revenue was up 3.2% on a year-over-year basis. On average, research analysts anticipate that CarGurus will post 1.41 earnings per share for the current year.

Insider Activity at CarGurus

In other CarGurus news, CEO Jason Trevisan sold 20,000 shares of the stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $37.00, for a total value of $740,000.00. Following the transaction, the chief executive officer owned 655,483 shares of the company’s stock, valued at approximately $24,252,871. This represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Ismail Elshareef sold 1,645 shares of the firm’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $32.21, for a total value of $52,985.45. Following the transaction, the insider owned 91,822 shares in the company, valued at approximately $2,957,586.62. This trade represents a 1.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 49,003 shares of company stock worth $1,858,494 over the last ninety days. Company insiders own 16.99% of the company’s stock.

Institutional Investors Weigh In On CarGurus

Several hedge funds have recently bought and sold shares of the company. Swiss Life Asset Management Ltd acquired a new position in shares of CarGurus in the 4th quarter valued at $334,000. Truist Financial Corp acquired a new stake in CarGurus during the 4th quarter worth $268,000. Horizon Investments LLC lifted its holdings in CarGurus by 2.0% during the fourth quarter. Horizon Investments LLC now owns 16,375 shares of the company’s stock worth $628,000 after acquiring an additional 318 shares in the last quarter. Torren Management LLC acquired a new position in CarGurus in the fourth quarter valued at about $49,000. Finally, Verdence Capital Advisors LLC bought a new stake in shares of CarGurus in the fourth quarter worth about $458,000. 86.90% of the stock is currently 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.