CarGurus, Inc. (NASDAQ:CARG) Receives $38.55 Consensus PT from Brokerages

CarGurus, Inc. (NASDAQ:CARG) has been assigned an average recommendation of “Moderate Buy” from the fifteen analysts that are covering the company, MarketBeat reports. Six research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $40.25.

Several brokerages have recently issued reports on CARG. Royal Bank Of Canada raised their target price on shares of CarGurus from $35.00 to $42.00 and gave the stock an “outperform” rating in a report on Friday. Barclays upped their price target on shares of CarGurus from $35.00 to $40.00 and gave the company an “overweight” rating in a report on Tuesday, July 21st. JPMorgan Chase & Co. raised their price target on shares of CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a report on Friday, May 8th. Freedom Capital upgraded shares of CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. Finally, Piper Sandler reaffirmed a “sector weight” rating on shares of CarGurus in a research note on Friday, June 12th.

Key Headlines Impacting CarGurus

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.

CarGurus Stock Performance

Shares of NASDAQ:CARG opened at $38.99 on Monday. The stock’s 50-day moving average price is $32.85 and its 200-day moving average price is $32.64. CarGurus has a 12-month low of $26.39 and a 12-month high of $41.22. The stock has a market capitalization 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 earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.05. The company had revenue of $250.97 million during the quarter, compared to analyst estimates of $249.85 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%.CarGurus’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, research analysts predict that CarGurus will post 2.11 EPS for the current year.

Insider Activity at CarGurus

In other CarGurus news, General Counsel Javier Zamora sold 8,072 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was 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 owned 103,061 shares of the company’s stock, 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 SEC, which is available at the SEC website. Also, CTO Matthew Todd Quinn sold 3,824 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $35.03, for a total value of $133,954.72. Following the completion of the sale, the chief technology officer owned 233,146 shares of the company’s stock, valued at approximately $8,167,104.38. This trade represents a 1.61% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,764 shares of company stock worth $1,071,649 in the last 90 days. Company insiders own 18.19% of the company’s stock.

Hedge Funds Weigh In On CarGurus

A number of institutional investors have recently bought and sold shares of CARG. Brown Brothers Harriman & Co. purchased a new position in shares of CarGurus during the 3rd quarter worth approximately $46,000. Torren Management LLC purchased a new position in shares of CarGurus in the 4th quarter valued at approximately $49,000. EverSource Wealth Advisors LLC boosted its position in shares of CarGurus by 491.7% during the second 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 in the last quarter. Clearstead Advisors LLC boosted its position in shares of CarGurus by 321.2% during the fourth quarter. Clearstead Advisors LLC now owns 2,127 shares of the company’s stock valued at $82,000 after purchasing an additional 1,622 shares in the last quarter. Finally, Rockefeller Capital Management L.P. grew its stake in CarGurus by 356.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock worth $83,000 after purchasing an additional 1,697 shares during the period. 86.90% of the stock is owned by institutional investors.

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.