CarGurus (NASDAQ:CARG) Trading Down 5.3% – Should You Sell?

CarGurus, Inc. (NASDAQ:CARG) shares traded down 5.3% on Tuesday . The stock traded as low as $31.42 and last traded at $31.4110. 512,816 shares changed hands during mid-day trading, a decline of 58% from the average daily volume of 1,221,052 shares. The stock had previously closed at $33.17.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Wall Street Zen upgraded CarGurus from a “hold” rating to a “buy” rating in a research note on Saturday, August 22nd. B. Riley Financial restated a “buy” rating on shares of CarGurus in a research note on Friday, August 7th. Needham & Company LLC increased their target price on CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a report on Friday, August 7th. BTIG Research lifted their target price on CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, UBS Group boosted their price target on CarGurus from $37.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $40.75.

CarGurus Stock Performance

The stock’s fifty day moving average is $35.47 and its two-hundred day moving average is $33.71. The firm has a market cap of $2.82 billion, a price-to-earnings ratio of 17.17, a PEG ratio of 1.18 and a beta of 1.16.

CarGurus (NASDAQ:CARG) last posted its earnings results on Thursday, August 6th. The company reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.05. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The firm had revenue of $250.97 million during the quarter, compared to analyst estimates of $249.85 million. During the same period in the previous year, the business posted $0.57 EPS. CarGurus’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. Sell-side analysts predict that CarGurus, Inc. will post 2.17 earnings per share for the current year.

Insiders Place Their Bets

In related news, CMO Dafna Sarnoff sold 17,151 shares of CarGurus stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $37.00, for a total transaction of $634,587.00. Following the sale, the chief marketing officer directly owned 109,668 shares in the company, valued at $4,057,716. The trade was a 13.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 6,205 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $37.08, for a total transaction of $230,081.40. Following the completion of the sale, the general counsel directly owned 80,260 shares of the company’s stock, valued at approximately $2,976,040.80. This represents a 7.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 71,943 shares of company stock worth $2,584,936. 18.19% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarGurus

Several hedge funds have recently modified their holdings of the company. Public Employees Retirement System of Ohio bought a new stake in shares of CarGurus in the 2nd quarter worth $43,000. Clearstead Advisors LLC boosted its stake in 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 buying an additional 1,622 shares in the last quarter. Rockefeller Capital Management L.P. grew its holdings in CarGurus by 356.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock worth $83,000 after acquiring an additional 1,697 shares during the period. Global Retirement Partners LLC grew its holdings in CarGurus by 859.9% during the fourth quarter. Global Retirement Partners LLC now owns 2,323 shares of the company’s stock worth $89,000 after acquiring an additional 2,081 shares during the period. Finally, EverSource Wealth Advisors LLC raised its position in CarGurus by 28.3% in the first quarter. EverSource Wealth Advisors LLC now owns 3,778 shares of the company’s stock worth $129,000 after acquiring an additional 834 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.

CarGurus Company Profile

CarGurus, Inc operates an online automotive marketplace that connects consumers with automobile dealers and private sellers. Its platform enables shoppers to search for new and used vehicles, compare listings, evaluate pricing and vehicle details, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital advertising and marketing products designed to help them display inventory and reach prospective buyers.

The company also provides tools and services intended to support automotive retailers throughout the vehicle-shopping process, including inventory merchandising, lead generation, pricing insights and digital retail capabilities.