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

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

Other analysts also recently issued reports about the stock. Citigroup increased their price target 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. BTIG Research upped their target price on shares of CarGurus from $39.00 to $44.00 and gave the company a “buy” rating in a research note on Tuesday. Zacks Research cut shares of CarGurus from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 16th. Jefferies Financial Group boosted their price target on shares of CarGurus from $42.00 to $45.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of CarGurus in a research note on Monday, December 29th. Five equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $40.86.

CarGurus Stock Down 1.8%

CARG stock opened at $37.65 on Friday. CarGurus has a twelve month low of $24.65 and a twelve month high of $41.33. The company has a market cap of $3.59 billion, a P/E ratio of 25.61, a price-to-earnings-growth ratio of 1.53 and a beta of 1.36. The business’s fifty day moving average is $36.29 and its 200-day moving average is $35.01.

CarGurus (NASDAQ:CARG) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.57 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 business had revenue of $238.70 million during the quarter, compared to the consensus estimate of $234.57 million. During the same quarter in the prior year, the company posted $0.45 earnings per share. The firm’s revenue was up 3.2% on a year-over-year basis. CarGurus has set its FY 2025 guidance at 2.190-2.250 EPS and its Q4 2025 guidance at 0.610-0.670 EPS. Research analysts anticipate that CarGurus will post 1.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In other CarGurus news, CEO Jason Trevisan sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $37.00, for a total transaction of $740,000.00. Following the completion of the transaction, the chief executive officer owned 655,483 shares of the company’s stock, valued at $24,252,871. This represents a 2.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Samuel Zales sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $34.98, for a total transaction of $349,800.00. Following the transaction, the chief operating officer directly owned 410,259 shares of the company’s stock, valued at $14,350,859.82. This represents a 2.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 66,228 shares of company stock valued at $2,457,624. Company insiders own 16.99% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Wellington Management Group LLP lifted its position in CarGurus by 6.6% during the 3rd 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 in the last quarter. Prevatt Capital Ltd increased its position in shares of CarGurus by 28.1% in the third 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 during the last quarter. The Manufacturers Life Insurance Company raised its holdings in CarGurus by 0.3% during the second quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company’s stock worth $64,093,000 after acquiring an additional 6,676 shares in the last quarter. Congress Asset Management Co. bought a new stake in CarGurus during the third quarter worth about $70,856,000. Finally, Arrowstreet Capital Limited Partnership boosted its position in CarGurus by 11.1% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,888,766 shares of the company’s stock valued at $70,319,000 after purchasing an additional 188,856 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

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.