Key Points
- Insider sale: Ismail Elshareef sold 2,673 CarGurus shares for approximately $79,174 at $29.62 per share, reducing his position by 2.05%. The transaction was made under a pre-arranged Rule 10b5-1 plan.
- Quarterly performance: CarGurus reported adjusted EPS of $0.66, beating estimates by $0.05, while revenue rose 7.2% year over year to $250.97 million. The company guided for third-quarter 2026 EPS of $0.63–$0.69.
- Analyst outlook: Wall Street maintains a “Moderate Buy” consensus rating with an average price target of $40.75, well above the stock’s recent price near $29.35. Institutional investors own approximately 86.9% of the company.
CarGurus, Inc. (NASDAQ:CARG - Get Free Report) insider Ismail Elshareef sold 2,673 shares of the company's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $29.62, for a total transaction of $79,174.26. Following the transaction, the insider owned 127,933 shares of the company's stock, valued at approximately $3,789,375.46. The trade was a 2.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
CarGurus Stock Down 2.2%
Shares of NASDAQ:CARG opened at $29.35 on Tuesday. CarGurus, Inc. has a fifty-two week low of $26.39 and a fifty-two week high of $41.22. The firm's 50-day simple moving average is $34.69 and its 200-day simple moving average is $33.58. The company has a market cap of $2.61 billion, a price-to-earnings ratio of 15.95, a PEG ratio of 1.07 and a beta of 1.22.
CarGurus (NASDAQ:CARG - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.05. The firm had revenue of $250.97 million during the quarter, compared to analysts' expectations of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 62.88%. The firm's revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, research analysts forecast that CarGurus, Inc. will post 2.17 EPS for the current year.
Institutional Investors Weigh In On CarGurus
Institutional investors and hedge funds have recently modified their holdings of the company. Prevatt Capital Ltd increased its stake in CarGurus by 12.5% in the 1st quarter. Prevatt Capital Ltd now owns 2,475,000 shares of the company's stock valued at $84,274,000 after purchasing an additional 275,000 shares in the last quarter. Geode Capital Management LLC grew its holdings in CarGurus by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 2,101,437 shares of the company's stock valued at $80,602,000 after purchasing an additional 24,910 shares during the last quarter. Alta Fox Capital Management LLC increased its position in shares of CarGurus by 15.9% in the fourth quarter. Alta Fox Capital Management LLC now owns 1,273,544 shares of the company's stock valued at $48,840,000 after buying an additional 174,844 shares in the last quarter. Fort Washington Investment Advisors Inc. OH raised its stake in shares of CarGurus by 8.5% during the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 1,110,231 shares of the company's stock worth $37,803,000 after buying an additional 86,600 shares during the last quarter. Finally, Bessemer Group Inc. raised its stake in shares of CarGurus by 18.2% during the 1st quarter. Bessemer Group Inc. now owns 1,085,061 shares of the company's stock worth $36,945,000 after buying an additional 166,954 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company's stock.
Key Stories Impacting CarGurus
Here are the key news stories impacting CarGurus this week:
- Positive Sentiment: CarGurus launched VINMax, a vehicle-identification-number-based offering intended to expand the company’s automotive marketplace and dealer products. Analysts cited in the report have a price target of approximately $40.75, implying meaningful upside from recent trading levels. CarGurus launches VINMax as analysts target CarGurus stock at USD 40.75
- Neutral Sentiment: A review comparing CarGurus and Reddit provides general investment analysis but does not identify a major new catalyst likely to materially change CARG’s outlook. Reviewing CarGurus and Reddit
- Neutral Sentiment: CarGurus Chief People Officer filings reported share withholding to cover taxes on restricted stock units. This is generally an administrative transaction rather than a discretionary bearish investment decision. CarGurus Chief People Officer Reports Share Withholding for RSU Tax Payments
- Negative Sentiment: Three executives sold a combined 13,731 shares for roughly $406,700 at an average price of $29.62. The transactions involved the CTO, CMO and another insider, which may weigh on sentiment; however, all were executed under pre-arranged Rule 10b5-1 plans, reducing their significance as a signal of deteriorating business conditions. CarGurus insider transaction filing
- Negative Sentiment: CMO Dafna Sarnoff separately filed to sell 7,234 Class A shares, reinforcing the near-term insider-selling narrative, although the filing itself does not necessarily indicate a change in the company’s fundamentals. CarGurus Officer Dafna Sarnoff Files Form 144 to Sell Shares
Wall Street Analysts Forecast Growth
A number of research firms recently weighed in on CARG. Citigroup lifted their price target on CarGurus from $32.00 to $39.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Royal Bank Of Canada increased their price objective on CarGurus from $35.00 to $42.00 and gave the stock an "outperform" rating in a research report on Friday, August 7th. B. Riley Financial reissued a "buy" rating on shares of CarGurus in a report on Friday, August 7th. Needham & Company LLC boosted their target price on shares of CarGurus from $43.00 to $44.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Finally, UBS Group upped their price target on shares of CarGurus from $37.00 to $40.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $40.75.
View Our Latest Stock Report on CARG
About CarGurus
(
Get Free Report)
CarGurus, Inc is a digital automotive marketplace that connects consumers with dealerships and private sellers offering new and used vehicles. Its platform enables shoppers to search vehicle listings, compare prices and features, review dealership information, and evaluate vehicle deals using data-driven tools. CarGurus generates revenue primarily by providing automotive dealers with listing, advertising, and other digital marketing services.
The company also offers products designed to help dealers attract shoppers, manage vehicle listings, and support the online and in-person vehicle-buying process.
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