UBS Group Forecasts Strong Price Appreciation for CarGurus (NASDAQ:CARG) Stock

CarGurus (NASDAQ:CARG) had its target price hoisted by equities research analysts at UBS Group from $33.00 to $36.00 in a report issued on Friday, August 8th, MarketBeat.com reports. The brokerage presently has a “neutral” rating on the stock. UBS Group’s target price would suggest a potential upside of 12.10% from the company’s current price.

Several other analysts have also recently commented on the stock. Needham & Company LLC increased their price target on shares of CarGurus from $39.00 to $44.00 and gave the company a “buy” rating in a research note on Friday, August 8th. Citigroup lowered their target price on CarGurus from $40.00 to $37.00 and set a “neutral” rating for the company in a research note on Thursday, July 3rd. Citizens Jmp lowered CarGurus from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 2nd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $42.00 price objective on shares of CarGurus in a research report on Monday, May 12th. Finally, JMP Securities restated a “market perform” rating and set a $38.00 target price on shares of CarGurus in a research report on Wednesday, July 2nd. Six analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $38.13.

CarGurus Stock Down 0.8%

CarGurus stock traded down $0.2750 during trading hours on Friday, hitting $32.1150. The stock had a trading volume of 188,965 shares, compared to its average volume of 1,044,865. The company has a market cap of $3.19 billion, a PE ratio of 26.11, a price-to-earnings-growth ratio of 1.59 and a beta of 1.42. CarGurus has a fifty-two week low of $24.65 and a fifty-two week high of $41.33. The company has a 50-day moving average of $32.70 and a two-hundred day moving average of $31.78.

CarGurus (NASDAQ:CARG) last posted its earnings results on Thursday, August 7th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.54 by $0.03. The company had revenue of $234.03 million during the quarter, compared to analysts’ expectations of $232.29 million. CarGurus had a net margin of 14.12% and a return on equity of 36.23%. CarGurus’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.41 earnings per share. CarGurus has set its Q3 2025 guidance at 0.500-0.580 EPS. As a group, analysts forecast that CarGurus will post 1.41 EPS for the current fiscal year.

Insider Activity at CarGurus

In other news, General Counsel Javier Esquivel Zamora sold 12,265 shares of the company’s stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $31.37, for a total value of $384,753.05. Following the completion of the transaction, the general counsel owned 102,723 shares of the company’s stock, valued at $3,222,420.51. This represents a 10.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Samuel Zales sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $33.88, for a total transaction of $338,800.00. Following the sale, the chief operating officer directly owned 461,821 shares in the company, valued at $15,646,495.48. The trade was a 2.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 49,049 shares of company stock worth $1,616,397 in the last three months. Insiders own 16.99% of the company’s stock.

Institutional Trading of CarGurus

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in CarGurus by 1.0% in the 1st quarter. Vanguard Group Inc. now owns 9,780,608 shares of the company’s stock worth $284,909,000 after purchasing an additional 93,722 shares in the last quarter. Wellington Management Group LLP boosted its holdings in CarGurus by 12.7% in the 1st quarter. Wellington Management Group LLP now owns 8,052,180 shares of the company’s stock valued at $234,560,000 after purchasing an additional 906,830 shares during the period. The Manufacturers Life Insurance Company increased its holdings in shares of CarGurus by 0.3% in the second quarter. The Manufacturers Life Insurance Company now owns 1,914,925 shares of the company’s stock worth $64,093,000 after purchasing an additional 6,676 shares during the period. Invesco Ltd. raised its position in shares of CarGurus by 6.9% in the second quarter. Invesco Ltd. now owns 1,717,321 shares of the company’s stock worth $57,479,000 after buying an additional 110,452 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in CarGurus by 22.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,699,910 shares of the company’s stock valued at $56,896,000 after buying an additional 311,287 shares during the period. 86.90% of the stock is owned by institutional investors.

CarGurus Company Profile

CarGurus, Inc operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers.