Royal Bank Of Canada Cuts CarGurus (NASDAQ:CARG) Price Target to $34.00

CarGurus (NASDAQ:CARG) had its price objective reduced by Royal Bank Of Canada from $40.00 to $34.00 in a research report released on Friday morning, Marketbeat Ratings reports. They currently have an outperform rating on the stock.

A number of other analysts also recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of CarGurus in a research report on Monday, December 29th. Citigroup boosted their price objective on shares of CarGurus from $37.00 to $41.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Needham & Company LLC decreased their target price on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research note on Thursday, February 5th. DA Davidson lowered their target price on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating for the company in a report on Friday. Finally, Wall Street Zen downgraded CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. Five investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, CarGurus has an average rating of “Hold” and a consensus target price of $38.50.

CarGurus Stock Performance

Shares of NASDAQ:CARG opened at $30.17 on Friday. The firm has a market capitalization 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 stock has a 50 day moving average price of $34.28 and a 200-day moving average price of $34.85. CarGurus has a 52-week low of $24.65 and a 52-week high of $39.42.

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

Insider Buying and Selling

In other news, insider Ismail Elshareef sold 1,645 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $32.21, for a total value of $52,985.45. Following the completion of the transaction, the insider owned 91,822 shares in the company, valued at $2,957,586.62. The trade was a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Jason Trevisan sold 20,000 shares of the stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $37.00, for a total value of $740,000.00. Following the sale, the chief executive officer directly owned 655,483 shares in the company, valued at $24,252,871. This trade represents a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 49,003 shares of company stock worth $1,858,494 in the last three months. Insiders own 17.20% of the company’s stock.

Institutional Trading of CarGurus

Institutional investors have recently made changes to their positions in the stock. Congress Asset Management Co. bought a new position in shares of CarGurus during the 3rd quarter valued at $70,856,000. Federated Hermes Inc. grew its holdings in shares of CarGurus by 11.5% in the third quarter. Federated Hermes Inc. now owns 465,978 shares of the company’s stock worth $17,348,000 after acquiring an additional 48,177 shares during the period. Dynamic Technology Lab Private Ltd purchased a new stake in CarGurus during the second quarter valued at $379,000. Voya Investment Management LLC lifted its holdings in CarGurus by 82.7% in the third quarter. Voya Investment Management LLC now owns 141,559 shares of the company’s stock valued at $5,270,000 after acquiring an additional 64,094 shares during the period. Finally, Y Intercept Hong Kong Ltd bought a new position in CarGurus in the third quarter valued at about $1,833,000. Hedge funds and other institutional investors own 86.90% of the company’s stock.

Trending Headlines about CarGurus

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.