CarGurus (NASDAQ:CARG) Shares Up 6.4% – Should You Buy?

CarGurus, Inc. (NASDAQ:CARG) shares shot up 6.4% during trading on Tuesday . The stock traded as high as $29.65 and last traded at $29.7240. 119,449 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 1,281,519 shares. The stock had previously closed at $27.94.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CARG. UBS Group set a $35.00 target price on CarGurus in a research report on Thursday, May 28th. Needham & Company LLC lifted their target price on CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Oppenheimer decreased their target price on CarGurus from $40.00 to $38.00 and set an “outperform” rating for the company in a research report on Tuesday, February 24th. Piper Sandler reiterated a “sector weight” rating on shares of CarGurus in a research report on Friday, June 12th. Finally, Weiss Ratings lowered CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, CarGurus has an average rating of “Moderate Buy” and a consensus target price of $37.79.

CarGurus Stock Performance

The firm has a market cap of $2.65 billion, a P/E ratio of 19.32, a P/E/G ratio of 1.09 and a beta of 1.20. The firm has a fifty day moving average of $32.17 and a 200-day moving average of $33.39.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.02. The business had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.10 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.The business’s revenue was up 8.2% on a year-over-year basis. During the same quarter last year, the business posted $0.46 EPS. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. Equities research analysts expect that CarGurus, Inc. will post 2.11 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Jennifer Ladd Hanson sold 2,499 shares of the company’s stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $35.61, for a total value of $88,989.39. Following the completion of the sale, the insider owned 98,191 shares of the company’s stock, valued at $3,496,581.51. This represents a 2.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CMO Dafna Sarnoff sold 5,445 shares of the stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total transaction of $179,902.80. Following the completion of the transaction, the chief marketing officer owned 134,369 shares of the company’s stock, valued at $4,439,551.76. This represents a 3.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 20,924 shares of company stock worth $669,419 over the last 90 days. Insiders own 16.99% of the company’s stock.

Institutional Trading of CarGurus

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP raised its position in shares of 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 raised its position in shares of CarGurus by 12.5% during the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company’s stock worth $84,274,000 after buying an additional 275,000 shares in the last quarter. Geode Capital Management LLC raised its position in shares of CarGurus by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company’s stock worth $80,602,000 after buying an additional 24,910 shares in the last quarter. Congress Asset Management Co. raised its position in shares of CarGurus by 2.9% during the 4th quarter. Congress Asset Management Co. now owns 1,958,144 shares of the company’s stock worth $75,095,000 after buying an additional 54,937 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in shares of CarGurus by 0.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company’s stock worth $64,093,000 after buying an additional 6,676 shares in the last quarter. 86.90% of the stock is currently 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.