CarGurus Inc. (NASDAQ: CARG) stock jumped 0.32% on Wednesday to $18.74 against a previous-day closing price of $18.68. With 0.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.14 million shares. During the session, the Auto & Truck Dealerships company that operates in wider Consumer Cyclical sector, reached to the highest price of $18.84 whereas the lowest price it dropped to was $18.35. The 52-week range on CARG shows that it touched its highest point at $26.73 and its lowest point at $9.14 during that stretch. It currently has a 1-year price target of $20.64. Beta for the stock currently stands at 1.59.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CARG was down-trending over the past week, with a drop of -3.40%, but this was up by 14.97% over a month. Three-month performance surged to 9.21% while six-month performance rose 40.80%. The stock lost -15.32% in the past year, while it has gained 33.76% so far this year. A look at the trailing 12-month EPS for CARG yields 1.95 with Next year EPS estimates of 1.02. For the next quarter, that number is 0.23. This implies an EPS growth rate of -8.80% for this year and 9.98% for next year. EPS is expected to grow by 15.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 85.60%.
Float and Shares Shorts:
At present, 115.36 million CARG shares are outstanding with a float of 97.88 million shares on hand for trading. On Apr 27, 2023, short shares totaled 8.57 million, which was 7.51% higher than short shares on Mar 30, 2023. In addition to Mr. E. Langley Steinert as the firm’s Founder & Exec. Chairman, Mr. Jason M. Trevisan serves as its CEO, Treasurer & Director.
Through their ownership of 105.77% of CARG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.08% of CARG, in contrast to 44.27% held by mutual funds. Shares owned by individuals account for 21.07%. As the largest shareholder in CARG with 13.69% of the stake, Wellington Management Co. LLP holds 13,536,783 shares worth 13,536,783. A second-largest stockholder of CARG, ArrowMark Colorado Holdings LLC, holds 9,347,377 shares, controlling over 9.45% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in CARG, holding 9,224,018 shares or 9.33% stake. With a 3.08% stake in CARG, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 3,042,633 shares are owned by the mutual fund manager. The Vanguard Explorer Fund, which owns about 2.70% of CARG stock, is the second-largest Mutual Fund holder. It holds 2,672,115 shares valued at 43.93 million. Vanguard Small Cap Index Fund holds 2.59% of the stake in CARG, owning 2,559,092 shares worth 42.07 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, CARG reported revenue of $511.23M and operating income of $23.54M. The EBITDA in the recently reported quarter was $34.78M and diluted EPS was -$0.09.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CARG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With CARG analysts setting a high price target of $24.00 and a low target of $12.00, the average target price over the next 12 months is $20.50. Based on these targets, CARG could surge 28.07% to reach the target high and fall by -35.97% to reach the target low. Reaching the average price target will result in a growth of 9.39% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded CARG stock several times over the past three months with 0 Buys and 10 Sells. In these transactions, 0 shares were bought while 58,148 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 37 over the past year. The total number of shares bought during that period was 842,287 while 223,575 shares were sold.