DA Davidson Has Lowered Expectations for CarGurus (NASDAQ:CARG) Stock Price

CarGurus (NASDAQ:CARG) had its price objective decreased by equities research analysts at DA Davidson from $37.50 to $33.50 in a report released on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. DA Davidson’s price objective would suggest a potential upside of 11.04% from the stock’s previous close.

A number of other analysts have also weighed in on the stock. BTIG Research lowered their price objective on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research note on Friday. Jefferies Financial Group upped their price target on CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Wall Street Zen cut shares of CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. Weiss Ratings reiterated a “hold (c+)” rating on shares of CarGurus in a research note on Monday, December 29th. Finally, Citigroup raised their target price on CarGurus from $37.00 to $41.00 and gave the company a “neutral” rating in a research report on Tuesday, October 28th. Five equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, CarGurus currently has an average rating of “Hold” and an average price target of $38.50.

CarGurus Trading Up 3.3%

CARG stock opened at $30.17 on Friday. The stock has a market cap of $2.88 billion, a PE ratio of 19.46, a P/E/G ratio of 1.13 and a beta of 1.35. CarGurus has a 12 month low of $24.65 and a 12 month high of $39.42. The company has a 50-day moving average price of $34.28 and a 200 day moving average price of $34.82.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings data on Thursday, February 19th. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.02. CarGurus had a net margin of 16.60% and a return on equity of 46.62%. The business had revenue of $209.09 million during the quarter, compared to the consensus estimate of $239.07 million. During the same quarter last year, the firm earned $0.55 earnings per share. The firm’s quarterly revenue was up 14.7% compared to the same quarter last year. CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. Sell-side analysts forecast that CarGurus will post 1.41 EPS for the current year.

Insider Buying and Selling

In other CarGurus news, CEO Jason Trevisan sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $37.00, for a total transaction of $740,000.00. Following the transaction, the chief executive officer owned 655,483 shares in the company, valued at approximately $24,252,871. The trade was a 2.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Ismail Elshareef sold 1,645 shares of the company’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $32.21, for a total transaction of $52,985.45. Following the transaction, the insider directly owned 91,822 shares in the company, valued at approximately $2,957,586.62. This trade represents a 1.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 49,003 shares of company stock valued at $1,858,494 over the last ninety days. Corporate insiders own 16.99% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its holdings in shares of CarGurus by 22.6% in the first quarter. Royal Bank of Canada now owns 75,072 shares of the company’s stock valued at $2,186,000 after purchasing an additional 13,834 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of CarGurus by 25.4% during the first quarter. AQR Capital Management LLC now owns 25,946 shares of the company’s stock valued at $756,000 after buying an additional 5,259 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in CarGurus by 3.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,845 shares of the company’s stock worth $1,889,000 after acquiring an additional 1,890 shares during the last quarter. Jane Street Group LLC grew its stake in CarGurus by 113.0% in the 1st quarter. Jane Street Group LLC now owns 123,305 shares of the company’s stock worth $3,592,000 after acquiring an additional 65,420 shares during the period. Finally, CWM LLC increased its stake in CarGurus by 37.6% in the second quarter. CWM LLC now owns 3,692 shares of the company’s stock valued at $124,000 after purchasing an additional 1,008 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.

Key CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q4 EPS beat and strong profitability: CarGurus reported $0.63 EPS vs. $0.61 consensus and showed healthy margins and return on equity, giving confidence in earnings quality. MarketBeat: Q4 results
• Positive Sentiment: Raised revenue guidance for FY2026 and Q1: Management set FY revenue around $997.7M–$1.0B (above consensus ~$970.9M) and Q1 revenue guidance $240.5M–$245.5M (slightly above the $238.8M consensus), which supports top-line momentum. GlobeNewswire: Earnings release
• Positive Sentiment: Share buyback support: CarGurus repurchased ~ $350M in 2025 and announced a new $250M repurchase program for 2026 — a clear capital-return signal that can lift EPS and shareholder value. GlobeNewswire: Buyback details
• Positive Sentiment: AI and international growth narrative: Management is accelerating AI-driven product launches and emphasizing international expansion, which analysts highlight as multi-year growth drivers. Seeking Alpha: AI & guidance
• Neutral Sentiment: Mixed guidance nuance — EPS vs. revenue: Q1 EPS guide (0.520–0.580) centers near/barely under consensus (0.560), while revenue guidance is modestly above consensus — investors should watch upcoming quarters to see if EPS catches up to revenue strength. Company slide deck
• Negative Sentiment: Revenue miss in quarter: Reported Q4 revenue ($209.1M) came in well below the consensus (~$239M), which tempers the EPS beat and may worry revenue-focused investors. MarketBeat: Revenue details
• Negative Sentiment: Analyst price-target cuts: RBC and DA Davidson trimmed targets (RBC $40→$34; DA Davidson $37.50→$33.50), which can cap near-term upside despite some analysts retaining positive ratings. The Fly: RBC note
• Negative Sentiment: Data-security headline: An alleged breach (1.7M records) reported by ShinyHunters creates reputational and potential regulatory risk; investors may view this as a short-term headwind. MSN: Data-breach report

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.