CarGurus (NASDAQ:CARG) Stock Price Down 6% – What’s Next?

CarGurus, Inc. (NASDAQ:CARG) fell 6% on Monday . The company traded as low as $36.88 and last traded at $36.6570. 95,946 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 1,283,452 shares. The stock had previously closed at $38.99.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CARG shares. B. Riley Financial restated a “buy” rating on shares of CarGurus in a research note on Friday. JPMorgan Chase & Co. boosted their price target on CarGurus from $36.00 to $38.00 and gave the company a “neutral” rating in a research note on Friday, May 8th. UBS Group upped their price objective on shares of CarGurus from $37.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday. Barclays increased their price objective on shares of CarGurus from $40.00 to $41.00 and gave the stock an “overweight” rating in a research note on Monday. Finally, Piper Sandler restated a “sector weight” rating on shares of CarGurus in a research report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $40.35.

CarGurus Trading Down 4.9%

The company has a 50 day moving average price of $32.85 and a 200-day moving average price of $32.64. The company has a market cap of $3.34 billion, a P/E ratio of 20.16, a price-to-earnings-growth ratio of 1.42 and a beta of 1.17.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05. The company had revenue of $250.97 million during the quarter, compared to analysts’ expectations of $249.85 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.CarGurus’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. Equities analysts expect that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Insider Transactions at CarGurus

In related news, General Counsel Javier Zamora sold 8,072 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $29.53, for a total transaction of $238,366.16. Following the completion of the transaction, the general counsel directly owned 103,061 shares in the company, valued at $3,043,391.33. This represents a 7.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Matthew Todd Quinn sold 3,824 shares of the stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $35.03, for a total transaction of $133,954.72. Following the completion of the transaction, the chief technology officer directly owned 233,146 shares of the company’s stock, valued at approximately $8,167,104.38. The trade was a 1.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 31,764 shares of company stock valued at $1,071,649. 18.19% of the stock is currently owned by insiders.

Institutional Trading of CarGurus

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. UBS Group AG grew its holdings in CarGurus by 158.2% during the 3rd quarter. UBS Group AG now owns 1,537,856 shares of the company’s stock worth $57,254,000 after acquiring an additional 942,199 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of CarGurus by 6.6% during the third quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock valued at $358,773,000 after acquiring an additional 594,670 shares during the last quarter. William Blair Investment Management LLC acquired a new position in shares of CarGurus during the fourth quarter worth $21,756,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of CarGurus by 159,137.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 536,629 shares of the company’s stock worth $22,787,000 after purchasing an additional 536,292 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in CarGurus during the 2nd quarter worth $15,631,000. 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.