CarGurus (NASDAQ:CARG) Cut to “Hold” at Zacks Research

Zacks Research cut shares of CarGurus (NASDAQ:CARG) from a strong-buy rating to a hold rating in a research note issued to investors on Thursday morning,Zacks.com reports.

CARG has been the subject of several other reports. Gordon Haskett began coverage on shares of CarGurus in a report on Monday, July 14th. They set a “hold” rating and a $35.00 target price for the company. BTIG Research restated a “buy” rating and set a $39.00 price objective on shares of CarGurus in a research report on Friday, September 5th. Oppenheimer decreased their price objective on shares of CarGurus from $42.00 to $40.00 and set an “outperform” rating on the stock in a report on Tuesday, August 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of CarGurus in a report on Wednesday, October 8th. Finally, UBS Group increased their price objective on shares of CarGurus from $36.00 to $40.00 and gave the company a “neutral” rating in a report on Monday, October 6th. Six research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $39.54.

CarGurus Price Performance

NASDAQ:CARG opened at $34.92 on Thursday. The firm has a market cap of $3.47 billion, a price-to-earnings ratio of 28.39, a price-to-earnings-growth ratio of 1.66 and a beta of 1.52. The company has a 50 day moving average price of $35.11 and a 200-day moving average price of $32.42. CarGurus has a 1-year low of $24.65 and a 1-year high of $41.33.

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

Insider Buying and Selling at CarGurus

In other CarGurus news, COO Samuel Zales sold 10,000 shares of CarGurus stock in a transaction on Thursday, October 16th. The shares were sold at an average price of $34.92, for a total transaction of $349,200.00. Following the sale, the chief operating officer owned 420,259 shares of the company’s stock, valued at $14,675,444.28. The trade was a 2.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jennifer Ladd Hanson sold 9,998 shares of CarGurus stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $36.88, for a total transaction of $368,726.24. Following the sale, the insider directly owned 54,807 shares in the company, valued at approximately $2,021,282.16. This trade represents a 15.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 29,998 shares of company stock worth $1,078,726. 16.99% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CARG. Congress Asset Management Co. acquired a new position in shares of CarGurus during the 3rd quarter valued at about $70,856,000. Invesco Ltd. increased its stake in shares of CarGurus by 340.5% during the first quarter. Invesco Ltd. now owns 1,606,869 shares of the company’s stock worth $46,808,000 after buying an additional 1,242,076 shares during the period. American Century Companies Inc. increased its stake in shares of CarGurus by 547.9% during the first quarter. American Century Companies Inc. now owns 1,398,341 shares of the company’s stock worth $40,734,000 after buying an additional 1,182,499 shares during the period. Wellington Management Group LLP increased its stake in shares of CarGurus by 12.7% during the first quarter. Wellington Management Group LLP now owns 8,052,180 shares of the company’s stock worth $234,560,000 after buying an additional 906,830 shares during the period. Finally, Boston Partners increased its stake in shares of CarGurus by 1,641.2% during the first quarter. Boston Partners now owns 878,556 shares of the company’s stock worth $25,363,000 after buying an additional 828,099 shares during the period. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.