why CarGurus Inc [CARG] is a Good Choice for Investors After New Price Target of $25.08

CarGurus Inc [NASDAQ: CARG] loss -1.55% on the last trading session, reaching $23.52 price per share at the time. The company report on February 26, 2024 at 4:01 PM that CarGurus Announces Fourth Quarter and Full-Year 2023 Results.

4Q’23 Marketplace Revenue further accelerated to 10% YoY, fastest pace in 10 quarters.

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4Q’23 Consolidated Net Loss of $(22.6) million, down 197% YoY; 4Q’23 Non-GAAP Consolidated Adjusted EBITDA of $61.2 million, up 120% YoY.

If compared to the average trading volume of 831.60K shares, CARG reached a trading volume of 4654037 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about CarGurus Inc [CARG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CARG shares is $25.08 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CARG stock is a recommendation set at 1.86. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Needham have made an estimate for CarGurus Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on Feb-28-24. While these analysts kept the previous recommendation, UBS raised their target price to Neutral. The new note on the price target was released on September 15, 2023, representing the official price target for CarGurus Inc stock. Previously, the target price had yet another raise to $28, while B. Riley Securities analysts kept a Buy rating on CARG stock.

The Average True Range (ATR) for CarGurus Inc is set at 0.71, with the Price to Sales ratio for CARG stock in the period of the last 12 months amounting to 2.89. The Price to Book ratio for the last quarter was 4.12, with the Price to Cash per share for the same quarter was set at 2.80. Price to Free Cash Flow for CARG in the course of the last twelve months was 31.69 with Quick ratio for the last quarter at 3.30.

Trading performance analysis for CARG stock

CarGurus Inc [CARG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.44. With this latest performance, CARG shares gained by 1.64% in over the last four-week period, additionally plugging by 31.32% over the last 6 months – not to mention a rise of 38.19% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CARG stock in for the last two-week period is set at 51.69, with the RSI for the last a single of trading hit 51.42, and the three-weeks RSI is set at 52.53 for CarGurus Inc [CARG]. The present Moving Average for the last 50 days of trading for this stock 23.47, while it was recorded at 23.54 for the last single week of trading, and 20.67 for the last 200 days.

CarGurus Inc [CARG]: A deeper dive into fundamental analysis

CarGurus Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.30 and a Current Ratio set at 3.30.

CarGurus Inc [CARG]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, CarGurus Inc posted 0.26/share EPS, while the average EPS was predicted by analysts to be reported at 0.17/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 52.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CARG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for CarGurus Inc go to 13.00%.

An analysis of Institutional ownership at CarGurus Inc [CARG]

The top three institutional holders of CARG stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in CARG stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in CARG stock with ownership which is approximately 5.8325%.