There Is Clear Momentum For CarGurus Inc. (NASDAQ: CARG)

Wellington Management Co. LLP has recently announced that it has increased stake in CarGurus Inc. (NASDAQ:CARG) by 0.98%. After grabbing 15.28 million shares, the institutional investor is now in possession of 0.15 million shares of the Communication Services Company. The new investment brought the stake of investor firm to 14.88% having worth around $222.54 million. Moreover, PAR Capital Management, Inc. increased its share by 2.2 million to have a control over 6.29 million shares. And BlackRock Fund Advisors raised its holdings to 4495.0 shares by acquiring 5.67 million shares or 5.52% of the stake.

CarGurus Inc. (CARG) concluded trading on 12/08/22 at a closing price of $13.33, with 2.13 million shares of worth about $28.44 million changed hands on the day. Half year performance of the stock remained negative as price took a plunge of -45.03% during that period and on Thursday the price saw a gain of about 11.74%. Currently the company’s common shares owned by public are about 118.68M shares, out of which, 101.41M shares are available for trading.

Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $22.00 and could fall to a lowest price of $11.50. The stock’s current price level is 34.59% above of average price target set by the analysts, while a rise to estimated low would result in loss of -15.91% for the stock. However, touching the estimated high of $22.00 would mean a gain of 39.41% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 116 times over the past 12 months. They bought 474,569 shares in 26 of the transactions. In 90 selling transactions, insiders dumped 492,398 shares.

Vanguard Total Stock Market Index, Hartford Mid Cap Fund, and Vanguard Small Cap Index Fund are the top 3 mutual funds which are holding stakes in CarGurus Inc. Vanguard Total Stock Market Index is currently holding 2.96 million shares of worth totaling $43.03 million. The company recently came buying 11271.0 shares which brought its stake up to 2.88% of the company’s outstanding shares. Hartford Mid Cap Fund sold 63918.0 shares, after which its hold over company’s outstanding shares shrunk to 2.57%, leaving 2.63 million shares with the mutual fund that have a worth of about $38.34 million. Vanguard Small Cap Index Fund, after buying 2.51 million shares, have now control over 2.45% of the stake in the company. It holds 38686.0 shares of worth $36.59 million.

CarGurus Inc. (NASDAQ: CARG) started trading at $12.54, above $0.61 from concluding price of the previous day. However, the stock later moved at a day high price of 13.66, or with a gain of 11.74%. Stock saw a price change of 1.91% in past 5 days and over the past one month there was a price change of -3.12%. Year-to-date (YTD), CARG shares are showing a performance of -60.37% which decreased to -65.20% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $9.14 but also hit the highest price of $50.03 during that period. The average intraday trading volume for CarGurus Inc. shares is 1.86 million. The stock is currently trading 0.90% above its 20-day simple moving average (SMA20), while that difference is down -3.34% for SMA50 and it goes to -45.68% lower than SMA200.

Wellington Management Co. LLP acquired 15.28 million shares of CarGurus Inc. having value of about $222.54 million. Data submitted at the U.S SEC by Wellington Management Co. LLP revealed that the firm now holds 0.15 million shares in the company valued at close to $1983490.67, or have control over 0.98% stake in the company. Holding of mutual funds in the company is about 42.74% while other institutional holders and individual stake holders have control over 49.29% and 19.52% of the stake respectively.

The stock has a current market capitalization of $1.59B and its 3Y-monthly beta is at 1.59. It has posted earnings per share of -$0.48 in the same period. It has Quick Ratio of 3.90 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for CARG, volatility over the week remained 5.66% while standing at 7.33% over the month.

Analysts are in expectations that CarGurus Inc. (CARG) stock would likely to be making an EPS of $0.26 in the current quarter, while forecast for next quarter EPS is $0.29 and it is $1.35 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.22 which is $0.31 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.38 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -100.20% while it is estimated to decrease by -26.45% in next year. EPS is likely to shrink at an annualized rate of 13.00% for next 5-years, compared to annual growth of 64.80% made by the stock over the past 5-years.

Analysts at 12 brokerage firms have issued recommendations for the CarGurus Inc. (CARG)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.90. Out of those 12 Wall Street analysts, 8 recommended a “Buy” rating, while 3 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Coverage by BTIG Research stated CarGurus Inc. (CARG) stock as a Buy in their note to investors on June 21, 2022, suggesting a price target of $33 for the stock. On February 02, 2022, Northcoast Initiated their recommendations, while on January 07, 2022, Jefferies Upgrade their ratings for the stock with a price target of $45. Stock get an Outperform rating from RBC Capital Mkts on August 26, 2021.