DA Davidson Cuts CarGurus (NASDAQ:CARG) Price Target to $33.50

CarGurus (NASDAQ:CARG) had its price target reduced by DA Davidson from $37.50 to $33.50 in a research note published on Friday,Benzinga reports. DA Davidson currently has a neutral rating on the stock.

CARG has been the subject of a number of other reports. Needham & Company LLC reduced their target price on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a report on Thursday, February 5th. BTIG Research reduced 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. Wall Street Zen cut shares of CarGurus from a “buy” rating to a “hold” rating in a research report on Sunday, February 15th. Citigroup lifted their price target on shares of CarGurus from $37.00 to $41.00 and gave the stock a “neutral” rating in a report on Tuesday, October 28th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of CarGurus in a research report on Monday, December 29th. Five 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, CarGurus currently has an average rating of “Hold” and a consensus price target of $38.50.

CarGurus Stock Up 3.3%

CarGurus stock opened at $30.17 on Friday. The firm has a market cap of $2.88 billion, a P/E ratio of 19.46, a P/E/G ratio of 1.13 and a beta of 1.35. The business has a fifty day moving average of $34.28 and a two-hundred day moving average of $34.85. CarGurus has a twelve month low of $24.65 and a twelve month high of $39.42.

CarGurus (NASDAQ:CARG) last announced its quarterly earnings results on Thursday, February 19th. The company reported $0.63 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.02. The business had revenue of $209.09 million for the quarter, compared to the consensus estimate of $239.07 million. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The business’s revenue was up 14.7% compared to the same quarter last year. During the same period last year, the business posted $0.55 EPS. CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. Equities analysts expect that CarGurus will post 1.41 earnings per share for the current year.

Insider Buying and Selling at CarGurus

In other news, insider Jennifer Ladd Hanson sold 2,358 shares of the stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $38.10, for a total value of $89,839.80. Following the transaction, the insider directly owned 50,466 shares of the company’s stock, valued at approximately $1,922,754.60. This represents a 4.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jason Trevisan sold 16,548 shares of the company’s stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $39.02, for a total value of $645,702.96. Following the completion of the sale, the chief executive officer owned 630,483 shares in the company, valued at approximately $24,601,446.66. This represents a 2.56% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 49,003 shares of company stock worth $1,858,494. 17.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CarGurus

Institutional investors and hedge funds have recently modified their holdings of the business. Congress Asset Management Co. purchased a new position in CarGurus during the third quarter worth approximately $70,856,000. UBS Group AG raised its stake in shares of CarGurus by 158.2% during the 3rd quarter. UBS Group AG now owns 1,537,856 shares of the company’s stock worth $57,254,000 after buying an additional 942,199 shares during the period. Wellington Management Group LLP lifted its position in shares of CarGurus by 6.6% during the 3rd quarter. Wellington Management Group LLP now owns 9,636,671 shares of the company’s stock valued at $358,773,000 after buying an additional 594,670 shares in the last quarter. William Blair Investment Management LLC acquired a new stake in CarGurus in the 4th quarter valued at $21,756,000. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in CarGurus by 159,137.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 536,629 shares of the company’s stock worth $22,787,000 after acquiring an additional 536,292 shares in the last quarter. Hedge funds and other institutional investors own 86.90% of the company’s stock.

CarGurus News Roundup

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

About CarGurus

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.