CarGurus, Inc. (NASDAQ:CARG – Get Free Report) shares shot up 12.7% on Wednesday. The company traded as high as $37.66 and last traded at $38.0470. 533,873 shares were traded during mid-day trading, a decline of 58% from the average session volume of 1,264,451 shares. The stock had previously closed at $33.77.
More CarGurus News
Here are the key news stories impacting CarGurus this week:
- Positive Sentiment: Q3 adjusted earnings were $0.70 per share, above the $0.66 consensus, while revenue reached $258.4 million versus estimates of $256.5 million. The company said revenue grew 12% year over year and was at the high end of its guidance range. CarGurus Q3 2026 results
- Positive Sentiment: CarGurus authorized a $250 million share-repurchase program. It also reported $73.9 million in free cash flow, supporting its ability to return capital to shareholders. CarGurus Q3 2026 results
- Positive Sentiment: Paying U.S. dealers using products beyond listings increased 16% year over year, pointing to continued growth in the company’s dealer offerings. CarGurus: 3 Key Takeaways for Long-Term Investors
- Neutral Sentiment: RBC lowered its price target to $41 from $42 but retained its “outperform” rating, leaving the analyst’s view positive despite the reduced target. RBC analyst recommendations
- Negative Sentiment: Despite the quarterly beat, the company’s revenue guidance was reported as slightly below expectations, which could temper optimism about near-term growth. CarGurus Q3 sales and revenue guidance
Analyst Ratings Changes
A number of analysts have recently commented on the company. UBS Group dropped their price target on CarGurus from $40.00 to $35.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 7th. Royal Bank Of Canada lowered their price objective on CarGurus from $42.00 to $41.00 and set an “outperform” rating for the company in a research note on Friday. Wall Street Zen upgraded CarGurus from a “hold” rating to a “buy” rating in a research note on Saturday, October 31st. B. Riley Financial reissued a “buy” rating on shares of CarGurus in a report on Friday, August 7th. Finally, Citigroup raised their price target on CarGurus from $32.00 to $39.00 and gave the company a “neutral” rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $39.85.
Check Out Our Latest Stock Analysis on CarGurus
CarGurus Trading Down 6.1%
The company has a market capitalization of $3.02 billion, a PE ratio of 18.46, a price-to-earnings-growth ratio of 1.30 and a beta of 1.22. The business’s fifty day moving average is $32.22 and its two-hundred day moving average is $32.85.
CarGurus (NASDAQ:CARG – Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.66 by $0.04. The business had revenue of $258.37 million for the quarter, compared to the consensus estimate of $256.46 million. CarGurus had a return on equity of 62.88% and a net margin of 18.06%. The company’s revenue was up 8.2% compared to the same quarter last year. During the same period last year, the business posted $0.57 EPS. As a group, equities research analysts anticipate that CarGurus, Inc. will post 2.17 EPS for the current year.
Insider Buying and Selling
In other news, Director Greg M. Schwartz sold 10,000 shares of CarGurus stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $36.07, for a total value of $360,700.00. Following the completion of the sale, the director directly owned 8,716 shares in the company, valued at $314,386.12. The trade was a 53.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Ismail Elshareef sold 1,964 shares of the business’s stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $32.33, for a total transaction of $63,496.12. Following the transaction, the insider directly owned 123,670 shares of the company’s stock, valued at $3,998,251.10. The trade was a 1.56% 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 82,846 shares of company stock worth $2,803,095 in the last three months. 18.19% of the stock is currently owned by company insiders.
Institutional Trading of CarGurus
Several large investors have recently modified their holdings of the company. Congress Asset Management Co. increased its stake in CarGurus by 7.6% in the 3rd quarter. Congress Asset Management Co. now owns 2,125,686 shares of the company’s stock worth $66,236,000 after buying an additional 149,338 shares in the last quarter. Bessemer Group Inc. lifted its position in shares of CarGurus by 18.2% in the first quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company’s stock valued at $36,945,000 after acquiring an additional 166,954 shares in the last quarter. Bank of America Corp DE lifted its position in shares of CarGurus by 26.6% in the first quarter. Bank of America Corp DE now owns 586,346 shares of the company’s stock valued at $19,965,000 after acquiring an additional 123,364 shares in the last quarter. Principal Financial Group Inc. boosted its stake in shares of CarGurus by 19.1% in the first quarter. Principal Financial Group Inc. now owns 573,406 shares of the company’s stock worth $19,524,000 after acquiring an additional 91,755 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of CarGurus in the second quarter worth about $15,631,000. Institutional investors own 86.90% of the company’s stock.
About CarGurus
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 vehicle and dealer information, and contact sellers. CarGurus generates revenue primarily by providing dealers with digital listing, advertising and marketing products designed to help them reach potential buyers.
The company also offers tools intended to support automotive retailers’ online operations, including inventory merchandising, lead generation and digital retailing capabilities.
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