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CarGurus (CARG): Analyst Ratings, Institutional Investment, and Insider Activity
4 months agoUS
CarGurus (NASDAQ:CARG) has been the subject of several recent analyst ratings and institutional investment adjustments. This article provides a summary of these activities, offering insights into the stock's current standing and potential future trajectory.
Key Insights
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Analyst Ratings:: CarGurus holds a consensus rating of "Hold" among analysts, with an average price target of $40.23. However, Wall Street Zen recently downgraded the stock from "Buy" to "Hold".
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Institutional Investment:: Institutional investors hold a significant 86.9% of CarGurus' stock. Public Sector Pension Investment Board increased its stake by 29% in Q3, while other firms like Wellington Management and Geode Capital Management also adjusted their positions.
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Insider Activity:: Insiders have been net sellers, with 49,003 shares sold in the last 90 days, valued at approximately $1.86 million. Jennifer Ladd Hanson and Ismail Elshareef were among the sellers. Despite this, insiders still hold roughly 17.2% of the company's stock.
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Financial Performance:: CarGurus recently beat quarterly estimates, reporting EPS of $0.57 versus an expected $0.55, and revenue of $238.7 million, a 3.2% increase year-over-year. The company boasts strong profitability metrics, including an ROE of 41.31% and a net margin of 16.41%.
In-Depth Analysis
CarGurus operates an online automotive marketplace connecting buyers and sellers of new and used vehicles. The platform offers tools for comparing listings, assessing fair market values, and locating local dealers. The recent analyst ratings reflect a mixed sentiment, with some firms maintaining a positive outlook while others turn neutral.
Institutional ownership remains high, indicating continued confidence from major investors, although recent insider selling might raise concerns for some investors. The company's financial performance shows solid growth and profitability, supporting a positive long-term outlook.
CarGurus' Instant Market Value (IMV) and dealer subscription services are key product offerings. Monitoring both analyst ratings and institutional investment trends can provide valuable insights into the potential direction of the stock.
FAQs
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Q: What is the consensus rating for CarGurus?
CarGurus has a consensus rating of "Hold" among analysts.
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Q: What percentage of CarGurus is owned by institutional investors?
Institutional investors own approximately 86.9% of CarGurus' stock.
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Q: Have insiders been buying or selling CarGurus stock recently?
Insiders have been net sellers in recent months.
Key Takeaways
CarGurus presents a mixed picture with solid financial performance offset by recent insider selling and a shift in analyst sentiment to a 'Hold' rating. Institutional ownership remains strong, indicating continued confidence from large investors. Investors should weigh these factors when considering CarGurus (CARG).
Discussion
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