CarGurus, Inc. (NASDAQ:CARG) has garnered a consensus “Hold” recommendation from thirteen analysts monitoring the company, with eight categorizing the stock as a hold and five suggesting a buy. The average one-year price target set by brokers is $40.23.
Several research analysts have weighed in on CarGurus’ stock performance. Notably, Wall Street Zen elevated its rating from “hold” to “buy” in a recent note. Similarly, BTIG Research increased its target price from $39 to $44 while also assigning a “buy” rating. Conversely, Zacks Research downgraded CarGurus from “strong buy” to “hold” in mid-October, while Weiss Ratings reaffirmed a “hold” rating at the end of December. Citigroup also adjusted its target price upwards from $37 to $41 but maintained a “neutral” stance on the stock.
CarGurus opened at $28.61 on Monday and has traded between a twelve-month low of $24.65 and a high of $40.37. The company boasts a market capitalization of approximately $2.73 billion and has a price-to-earnings (PE) ratio of 19.46, with a PEG ratio of 1.08 and a beta of 1.35. The stock’s performance over the last 50 days shows a simple moving average of $35.94, while the 200-day average stands at $35.16.
In its latest earnings report, released on November 6, CarGurus reported earnings of $0.57 per share, surpassing analysts’ expectations of $0.55. The company achieved a return on equity of 41.31% and a net margin of 16.41%, with revenue totaling $238.7 million, beating the consensus prediction of $234.57 million and marking a year-over-year increase of 3.2%. Analysts anticipate the firm will earn approximately $1.41 per share for the current fiscal year.
Recent insider trading activity saw CEO Jason Trevisan selling 20,000 shares for around $740,000. Following this sale, he retains approximately 655,483 shares valued at about $24.25 million. Additionally, insider Ismail Elshareef sold 1,645 shares for nearly $53,000, represented a slight decrease in his ownership. Notably, insiders have sold about 49,003 shares in total over the last three months.
Institutional investors have also made adjustments to their holdings in CarGurus. Horizon Investments raised its stake by 2%, while Nisa Investment Advisors increased their ownership by 20.8%. Other firms, including QRG Capital Management and GAMMA Investing, have also boosted their positions in the company, leading to approximately 86.90% of shares being held by institutional investors.
CarGurus operates as an online automotive marketplace that connects buyers and sellers of new and used vehicles through a data-driven platform. The company provides tools that help consumers assess vehicle prices and offers services to dealers to enhance their marketing capabilities.
The outlook for CarGurus appears cautiously optimistic, with analysts acknowledging the company’s robust market presence and consistent performance metrics. As the automotive market evolves, CarGurus’ strategic positioning may well offer opportunities for growth, reflecting the potential for stock appreciation in line with broader market trends.