10 analysts have expressed a variety of opinions on CarGurus CARG over the past quarter, offering a diverse set of opinions from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 6 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 3 | 2 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for CarGurus, presenting an average target of $30.2, a high estimate of $32.00, and a low estimate of $27.00. Observing a 6.71% increase, the current average has risen from the previous average price target of $28.30.
Analyzing Analyst Ratings: A Detailed Breakdown
A comprehensive examination of how financial experts perceive CarGurus is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $32.00 | $32.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $32.00 | $30.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $32.00 | $29.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $30.00 | $27.00 |
| Marvin Fong | BTIG | Raises | Buy | $30.00 | $28.00 |
| Naved Khan | B. Riley Securities | Raises | Buy | $30.00 | $28.00 |
| Jed Kelly | Oppenheimer | Raises | Outperform | $32.00 | $30.00 |
| Chris Pierce | Needham | Raises | Buy | $27.00 | $25.00 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $30.00 | $30.00 |
| Ronald Josey | Citigroup | Raises | Neutral | $27.00 | $24.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to CarGurus. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarGurus compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of CarGurus's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into CarGurus's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on CarGurus analyst ratings.
Delving into CarGurus's Background
CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listing through which it offers real-time and historical data analyzing the connections and pricing analysis. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two segments namely U.S. Marketplace and Digital Wholesale. It generates majority of revenue from the U.S. Marketplace.
Unraveling the Financial Story of CarGurus
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Negative Revenue Trend: Examining CarGurus's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -8.78% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: CarGurus's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -31.42%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -13.47%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): CarGurus's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -8.46%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.43, CarGurus adopts a prudent financial strategy, indicating a balanced approach to debt management.
What Are Analyst Ratings?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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