CarGurus (NASDAQ:CARG) Sets New 12-Month High After Better-Than-Expected Earnings
by Danessa Lincoln · The Markets DailyCarGurus, Inc. (NASDAQ:CARG – Get Free Report)’s share price hit a new 52-week high on Friday following a stronger than expected earnings report. The company traded as high as $40.00 and last traded at $39.1040, with a volume of 100449 shares. The stock had previously closed at $36.38.
The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.05. The business had revenue of $250.97 million during the quarter, compared to the consensus estimate of $249.85 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.The company’s quarterly revenue was up 7.2% on a year-over-year basis. During the same quarter last year, the company earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS.
Key CarGurus News
Here are the key news stories impacting CarGurus this week:
- Positive Sentiment: CarGurus earned $0.66 per share, up from $0.57 a year ago and ahead of the roughly $0.61–$0.62 analyst consensus. Revenue was approximately $251.0 million, slightly above estimates and up 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: Profitability and cash flow were strong: GAAP net income from continuing operations was $49.2 million, adjusted EBITDA was $84.7 million, operating cash flow reached $94.6 million, and free cash flow totaled $87.7 million. Adjusted EBITDA came in toward the high end of management’s guidance. CarGurus Announces Second Quarter 2026 Results
- Positive Sentiment: The company repurchased $29.2 million of stock during the quarter. CarGurus said cumulative repurchases since December 2022 have exceeded 30% of shares outstanding, supporting per-share value and signaling management’s confidence in the business. CarGurus Announces Second Quarter 2026 Results
- Positive Sentiment: Third-quarter EPS guidance of $0.63–$0.69 is above the $0.61 consensus estimate, reinforcing expectations for continued earnings growth. CarGurus Q2 Key Metrics
- Neutral Sentiment: Third-quarter revenue guidance of $253.5 million–$258.5 million brackets the $256.9 million consensus estimate, suggesting performance broadly in line with expectations rather than a major sales acceleration. CarGurus Q2 Earnings Results
Analyst Upgrades and Downgrades
A number of equities research analysts have recently weighed in on CARG shares. Needham & Company LLC boosted their price objective on shares of CarGurus from $43.00 to $44.00 and gave the company a “buy” rating in a report on Friday. BTIG Research boosted their price target on CarGurus from $40.00 to $41.00 and gave the company a “buy” rating in a research note on Friday. Royal Bank Of Canada restated an “outperform” rating on shares of CarGurus in a research note on Friday. Weiss Ratings downgraded CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 13th. Finally, Freedom Capital upgraded CarGurus to a “strong-buy” rating in a research report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, CarGurus presently has an average rating of “Moderate Buy” and a consensus price target of $39.05.
Read Our Latest Research Report on CarGurus
Insider Buying and Selling
In other CarGurus news, General Counsel Javier Zamora sold 6,205 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $37.08, for a total value of $230,081.40. Following the sale, the general counsel directly owned 80,260 shares of the company’s stock, valued at approximately $2,976,040.80. This trade represents a 7.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of CarGurus stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $34.56, for a total transaction of $86,365.44. Following the sale, the insider directly owned 92,894 shares in the company, valued at approximately $3,210,416.64. This trade represents a 2.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,764 shares of company stock valued at $1,071,649 over the last ninety days. Company insiders own 18.19% of the company’s stock.
Institutional Trading of CarGurus
Hedge funds have recently modified their holdings of the stock. Brown Brothers Harriman & Co. purchased a new position in shares of CarGurus in the 3rd quarter valued at about $46,000. Torren Management LLC purchased a new position in CarGurus in the fourth quarter worth approximately $49,000. EverSource Wealth Advisors LLC grew its holdings in CarGurus by 491.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock worth $55,000 after acquiring an additional 1,362 shares in the last quarter. Clearstead Advisors LLC increased its position in shares of CarGurus by 321.2% in the 4th quarter. Clearstead Advisors LLC now owns 2,127 shares of the company’s stock valued at $82,000 after purchasing an additional 1,622 shares during the last quarter. Finally, Rockefeller Capital Management L.P. raised its holdings in shares of CarGurus by 356.5% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,173 shares of the company’s stock valued at $83,000 after purchasing an additional 1,697 shares in the last quarter. 86.90% of the stock is currently owned by institutional investors and hedge funds.
CarGurus Stock Performance
The company’s 50-day moving average price is $32.66 and its 200-day moving average price is $32.61. The firm has a market capitalization of $3.58 billion, a PE ratio of 26.10, a PEG ratio of 1.33 and a beta of 1.17.
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.