CarGurus (NASDAQ:CARG) Sets New 52-Week High on Better-Than-Expected Earnings

Posted by Brenda Bartman on Aug 7th, 2026

CarGurus, Inc. (NASDAQ:CARG – Get Free Report)’s share price hit a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $40.00 and last traded at $39.1040, with a volume of 100449 shares. The stock had previously closed at $36.38.

The company reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.05. The business had revenue of $250.97 million during the quarter, compared to analyst estimates of $249.85 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.The company’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period last year, the company earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS.

Key Stories Impacting CarGurus

Here are the key news stories impacting CarGurus this week:

Positive Sentiment: CarGurus earned $0.66 per share, up from $0.57 a year ago and ahead of the roughly $0.61–$0.62 analyst consensus. Revenue was approximately $251.0 million, slightly above estimates and up 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
Positive Sentiment: Profitability and cash flow were strong: GAAP net income from continuing operations was $49.2 million, adjusted EBITDA was $84.7 million, operating cash flow reached $94.6 million, and free cash flow totaled $87.7 million. Adjusted EBITDA came in toward the high end of management’s guidance. CarGurus Announces Second Quarter 2026 Results
Positive Sentiment: The company repurchased $29.2 million of stock during the quarter. CarGurus said cumulative repurchases since December 2022 have exceeded 30% of shares outstanding, supporting per-share value and signaling management’s confidence in the business. CarGurus Announces Second Quarter 2026 Results
Positive Sentiment: Third-quarter EPS guidance of $0.63–$0.69 is above the $0.61 consensus estimate, reinforcing expectations for continued earnings growth. CarGurus Q2 Key Metrics
Neutral Sentiment: Third-quarter revenue guidance of $253.5 million–$258.5 million brackets the $256.9 million consensus estimate, suggesting performance broadly in line with expectations rather than a major sales acceleration. CarGurus Q2 Earnings Results

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Royal Bank Of Canada reiterated an “outperform” rating on shares of CarGurus in a report on Friday. JPMorgan Chase & Co. boosted their price objective on CarGurus from $36.00 to $38.00 and gave the company a “neutral” rating in a report on Friday, May 8th. Weiss Ratings downgraded CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 13th. 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. Finally, Piper Sandler reissued a “sector weight” rating on shares of CarGurus in a research note on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $39.05.

Read Our Latest Report on CARG

Insider Buying and Selling

In other CarGurus news, General Counsel Javier Zamora sold 6,205 shares of the stock in a transaction 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 sale, the general counsel owned 80,260 shares of the company’s stock, valued at approximately $2,976,040.80. This trade represents a 7.18% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of CarGurus stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $34.56, for a total value of $86,365.44. Following the completion of the transaction, the insider owned 92,894 shares in the company, valued at $3,210,416.64. This represents a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 31,764 shares of company stock valued at $1,071,649 over the last three months. 18.19% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarGurus

A number of large investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. bought a new stake in shares of CarGurus in the 3rd quarter valued at about $46,000. Torren Management LLC bought a new position in shares of CarGurus during the 4th quarter worth approximately $49,000. EverSource Wealth Advisors LLC lifted its position in 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 acquiring an additional 1,362 shares during the last quarter. Clearstead Advisors LLC lifted its position 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 acquiring an additional 1,622 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted 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 valued at $83,000 after acquiring an additional 1,697 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors.

CarGurus Stock Up 9.1%

The company’s 50 day simple moving average is $32.66 and its two-hundred day simple moving average is $32.61. The company has a market capitalization of $3.58 billion, a price-to-earnings ratio of 26.10, a P/E/G ratio of 1.33 and a beta of 1.17.

About CarGurus

(Get Free Report)

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.