In the latest quarter, 10 analysts provided ratings for CarGurus CARG, showcasing a mix of bullish and bearish perspectives.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 5 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 3 | 4 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $30.95, with a high estimate of $38.00 and a low estimate of $26.50. Observing a 6.54% increase, the current average has risen from the previous average price target of $29.05.
Interpreting Analyst Ratings: A Closer Look
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 |
|---|---|---|---|---|---|
| John Colantuoni | Jefferies | Raises | Buy | $38.00 | $35.00 |
| Tom White | DA Davidson | Maintains | Neutral | $26.50 | $26.50 |
| 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 |
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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of CarGurus compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of CarGurus's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of CarGurus's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on CarGurus analyst ratings.
Unveiling the Story Behind CarGurus
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.
Financial Milestones: CarGurus's Journey
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.
Decline in Revenue: Over the 3 months period, CarGurus faced challenges, resulting in a decline of approximately -8.78% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.
Net Margin: CarGurus's net margin is impressive, surpassing industry averages. With a net margin of -31.42%, the company demonstrates 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 falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -8.46%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.43.
The Basics of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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