CarGurus (NASDAQ:CARG) Price Target Lowered to $33.50 at DA Davidson

CarGurus (NASDAQ:CARG) had its target price cut by equities research analysts at DA Davidson from $37.50 to $33.50 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. DA Davidson’s price target indicates a potential upside of 14.73% from the stock’s current price.

A number of other equities analysts have also commented on CARG. Wall Street Zen lowered CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. Needham & Company LLC decreased their price objective on CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a report on Thursday, February 5th. Jefferies Financial Group increased their target price on CarGurus from $42.00 to $45.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. Weiss Ratings restated a “hold (c+)” rating on shares of CarGurus in a research report on Monday, December 29th. Finally, Citigroup increased 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. Five equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $39.23.

CarGurus Stock Up 3.2%

CARG opened at $29.20 on Friday. The firm has a 50-day simple moving average of $34.44 and a two-hundred day simple moving average of $34.81. CarGurus has a 52 week low of $24.65 and a 52 week high of $39.42. The company has a market capitalization of $2.79 billion, a PE ratio of 19.86, a price-to-earnings-growth ratio of 1.06 and a beta of 1.35.

Insiders Place Their Bets

In related news, insider Ismail Elshareef sold 1,645 shares of CarGurus stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $32.21, for a total transaction of $52,985.45. Following the completion of the transaction, the insider directly owned 91,822 shares of the company’s stock, valued at approximately $2,957,586.62. The trade was a 1.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jennifer Ladd Hanson sold 2,358 shares of the stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $38.10, for a total transaction of $89,839.80. Following the completion of the sale, the insider directly owned 50,466 shares in the company, valued at $1,922,754.60. This trade represents a 4.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 49,003 shares of company stock valued at $1,858,494 over the last three months. 16.99% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Horizon Investments LLC raised its holdings in shares of CarGurus by 2.0% in the fourth quarter. Horizon Investments LLC now owns 16,375 shares of the company’s stock worth $628,000 after buying an additional 318 shares during the period. Nisa Investment Advisors LLC grew its position in CarGurus by 20.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,864 shares of the company’s stock valued at $69,000 after acquiring an additional 321 shares during the last quarter. GAMMA Investing LLC increased its stake in CarGurus by 8.7% in the third quarter. GAMMA Investing LLC now owns 4,535 shares of the company’s stock worth $169,000 after purchasing an additional 363 shares during the period. ProShare Advisors LLC lifted its position in shares of CarGurus by 2.8% during the fourth quarter. ProShare Advisors LLC now owns 15,992 shares of the company’s stock worth $613,000 after purchasing an additional 436 shares during the last quarter. Finally, Farther Finance Advisors LLC lifted its position in shares of CarGurus by 71.1% during the third quarter. Farther Finance Advisors LLC now owns 1,066 shares of the company’s stock worth $40,000 after purchasing an additional 443 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

More CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 results topped expectations: GAAP and non‑GAAP metrics showed strength (EPS $0.63 vs. $0.61 consensus; revenue +14.7% YoY; strong margins and ROE), signaling continued operating leverage. This is the primary near‑term earnings catalyst. Article Title
• Positive Sentiment: Management announced strong full‑year results (FY net income and adjusted EBITDA up significantly) and a new $250M share repurchase program after ~$350M repurchased in 2025 — supports EPS accretion and buyback-driven demand for the stock. Article Title
• Positive Sentiment: Revenue guidance is above Street expectations for Q1 and FY2026 (Q1: $240.5–$245.5M vs. $238.8M consensus; FY revenue raised to ~$998M–$1.0B vs. $970.9M consensus), suggesting demand resilience in the core marketplace. Article Title
• Positive Sentiment: Analysts and coverage note accelerating AI adoption and product innovation as a growth driver — a narrative that can support multiple expansion if execution continues. Article Title
• Neutral Sentiment: Short interest reporting is noisy/ambiguous in recent feeds (appears as zero in the summary), so there’s no clear short‑squeeze signal or fresh bearish positioning from that data set. Article Title
• Negative Sentiment: Q1 EPS guidance was set at $0.520–$0.580 versus consensus $0.560 — midpoint slightly below Street, which tempers the beat and may keep some investors cautious on near‑term EPS trajectory. Article Title
• Negative Sentiment: An alleged data breach (reportedly ~1.7M records) raises reputational, operational and potential regulatory risk — a headline risk investors will watch for follow‑up details and remediation. Article Title

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.