CarGurus (NASDAQ:CARG) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of CarGurus (NASDAQ:CARG) from a buy rating to a hold rating in a research report released on Saturday.

Several other equities analysts have also recently commented on CARG. BTIG Research upped their target price on shares of CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research note on Friday. B. Riley Financial reaffirmed a “buy” rating on shares of CarGurus in a research report on Friday. Piper Sandler reissued a “sector weight” rating on shares of CarGurus in a research report on Friday, June 12th. Weiss Ratings lowered CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 13th. Finally, JPMorgan Chase & Co. raised their price objective on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $40.25.

CarGurus Price Performance

NASDAQ CARG opened at $38.99 on Friday. CarGurus has a fifty-two week low of $26.39 and a fifty-two week high of $41.22. The stock’s 50-day moving average is $32.85 and its two-hundred day moving average is $32.65. The firm has a market cap of $3.52 billion, a P/E ratio of 21.19, a price-to-earnings-growth ratio of 1.42 and a beta of 1.17.

CarGurus (NASDAQ:CARG) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.05. CarGurus had a return on equity of 59.79% and a net margin of 18.06%.The company had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. During the same quarter in the prior year, the company posted $0.57 EPS. The firm’s revenue was up 7.2% on a year-over-year basis. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, equities analysts expect that CarGurus will post 2.11 EPS for the current year.

Insider Activity

In related news, CTO Matthew Todd Quinn sold 3,824 shares of the company’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total value of $133,954.72. Following the sale, the chief technology officer owned 233,146 shares of the company’s stock, valued at $8,167,104.38. The trade was a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $34.56, for a total transaction of $86,365.44. Following the transaction, the insider owned 92,894 shares of the company’s stock, valued at approximately $3,210,416.64. This represents a 2.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 31,764 shares of company stock worth $1,071,649. Corporate insiders own 18.19% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CARG. Brown Brothers Harriman & Co. acquired a new stake in shares of CarGurus in the 3rd quarter valued at $46,000. Torren Management LLC bought a new position in CarGurus during the 4th quarter valued at about $49,000. EverSource Wealth Advisors LLC lifted its holdings in CarGurus by 491.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after purchasing an additional 1,362 shares during the last quarter. Clearstead Advisors LLC boosted its position in CarGurus by 321.2% in the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company’s stock valued at $82,000 after buying an additional 1,622 shares in the last quarter. Finally, Rockefeller Capital Management L.P. boosted its position in CarGurus by 356.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock valued at $83,000 after buying an additional 1,697 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

CarGurus News Roundup

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q2 earnings beat expectations: CarGurus reported adjusted earnings of $0.66 per share, up from $0.57 a year earlier and above analysts’ estimates of approximately $0.61–$0.62. Revenue reached $251.0 million, slightly exceeding consensus expectations and increasing 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Strong profitability and cash generation: Second-quarter GAAP net income from continuing operations was $49.2 million. Adjusted EBITDA was $84.7 million, near the high end of company guidance, while operating cash flow was $94.6 million and free cash flow was $87.7 million. CarGurus Announces Second Quarter 2026 Results
• Positive Sentiment: Above-consensus Q3 outlook: CarGurus guided for third-quarter EPS of $0.63–$0.69, ahead of the $0.61 analyst consensus. Revenue guidance of $253.5 million–$258.5 million was broadly consistent with expectations, suggesting continued year-over-year growth. CarGurus Earnings Report
• Positive Sentiment: Share repurchases support per-share value: The company repurchased $29.2 million of stock during Q2. Since December 2022, cumulative repurchases have exceeded 30% of shares outstanding, which can support EPS and shareholder returns. CarGurus Q2 Results Presentation
• Neutral Sentiment: Revenue was only modestly above estimates, and the available report does not provide a clear updated full-year 2026 EPS target. Investors may therefore focus on future growth trends and the company’s ability to sustain its strong margins and cash flow.

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.