CarGurus (NASDAQ:CARG) Shares Gap Down - Here's Why

CarGurus, Inc. (NASDAQ:CARG - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $31.33, but opened at $29.90. CarGurus shares last traded at $29.78, with a volume of 433,535 shares.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. cut CarGurus from an "overweight" rating to a "neutral" rating and decreased their price target for the company from $42.00 to $34.00 in a research report on Thursday. JMP Securities reaffirmed a "market outperform" rating and set a $46.00 target price on shares of CarGurus in a report on Monday, December 16th. Needham & Company LLC reissued a "buy" rating and issued a $45.00 price target on shares of CarGurus in a report on Friday, February 21st. Finally, Oppenheimer lowered their target price on shares of CarGurus from $44.00 to $42.00 and set an "outperform" rating on the stock in a research note on Monday, February 24th. Two equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, CarGurus has a consensus rating of "Moderate Buy" and a consensus price target of $38.75.

CarGurus Trading Up 0.5 %

The business's 50 day simple moving average is $34.95 and its 200 day simple moving average is $34.32. The company has a market cap of $3.02 billion, a P/E ratio of 160.84, a PEG ratio of 1.72 and a beta of 1.52.

CarGurus (NASDAQ:CARG - Get Free Report) last posted its earnings results on Thursday, February 20th. The company reported $0.44 EPS for the quarter, missing analysts' consensus estimates of $0.50 by ($0.06). The firm had revenue of $228.54 million during the quarter, compared to analysts' expectations of $231.72 million. CarGurus had a return on equity of 27.14% and a net margin of 2.34%. Sell-side analysts anticipate that CarGurus, Inc. will post 1.41 EPS for the current year.

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Insider Activity at CarGurus

In related news, CMO Dafna Sarnoff sold 10,570 shares of the firm's stock in a transaction dated Friday, January 3rd. The stock was sold at an average price of $35.78, for a total transaction of $378,194.60. Following the sale, the chief marketing officer now owns 95,261 shares of the company's stock, valued at $3,408,438.58. This trade represents a 9.99 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Zachary Emerson Hallowell sold 4,580 shares of the company's stock in a transaction on Friday, January 3rd. The stock was sold at an average price of $35.78, for a total value of $163,872.40. Following the transaction, the chief executive officer now directly owns 120,051 shares in the company, valued at approximately $4,295,424.78. The trade was a 3.67 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 61,888 shares of company stock worth $2,229,388. Company insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On CarGurus

Several hedge funds have recently modified their holdings of CARG. Allspring Global Investments Holdings LLC boosted its holdings in CarGurus by 16.4% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 244,828 shares of the company's stock worth $8,748,000 after buying an additional 34,555 shares during the last quarter. Los Angeles Capital Management LLC boosted its stake in CarGurus by 36.4% during the 4th quarter. Los Angeles Capital Management LLC now owns 87,862 shares of the company's stock worth $3,210,000 after purchasing an additional 23,445 shares during the last quarter. State Street Corp boosted its stake in CarGurus by 4.8% during the 3rd quarter. State Street Corp now owns 3,298,894 shares of the company's stock worth $99,066,000 after purchasing an additional 151,862 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of CarGurus by 9.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,043,217 shares of the company's stock valued at $31,328,000 after buying an additional 89,815 shares during the last quarter. Finally, Summit Global Investments acquired a new position in CarGurus during the fourth quarter worth about $1,150,000. 86.90% of the stock is owned by hedge funds and other institutional investors.

CarGurus Company Profile

CarGurus, Inc operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers.