SunTrust Banks Comments on CarGurus Inc’s Q4 2018 Earnings (CARG)

CarGurus Inc (NASDAQ:CARG) – Research analysts at SunTrust Banks issued their Q4 2018 earnings per share (EPS) estimates for CarGurus in a research note issued on Monday, November 19th. SunTrust Banks analyst N. Khan expects that the company will post earnings of $0.03 per share for the quarter. SunTrust Banks has a “Buy” rating and a $49.00 price objective on the stock. SunTrust Banks also issued estimates for CarGurus’ FY2019 earnings at $0.20 EPS, FY2020 earnings at $0.39 EPS, FY2021 earnings at $0.66 EPS and FY2022 earnings at $1.09 EPS.

CarGurus (NASDAQ:CARG) last announced its earnings results on Wednesday, November 7th. The company reported $0.08 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.05 by $0.03. The firm had revenue of $119.04 million during the quarter, compared to analyst estimates of $112.70 million. CarGurus had a net margin of 11.78% and a return on equity of 9.82%. The company’s revenue for the quarter was up 43.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.02 EPS.

A number of other equities analysts have also weighed in on CARG. DA Davidson set a $53.00 target price on shares of CarGurus and gave the stock a “buy” rating in a research note on Wednesday, August 8th. Royal Bank of Canada upped their target price on shares of CarGurus from $55.00 to $59.00 and gave the stock an “outperform” rating in a research note on Thursday, November 8th. BidaskClub raised shares of CarGurus from a “buy” rating to a “strong-buy” rating in a research note on Thursday, July 26th. BTIG Research assumed coverage on shares of CarGurus in a research note on Tuesday, November 13th. They issued a “buy” rating and a $48.00 target price for the company. Finally, Benchmark upped their target price on shares of CarGurus from $44.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, August 8th. One equities research analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. CarGurus currently has a consensus rating of “Buy” and a consensus target price of $51.57.

Shares of NASDAQ CARG opened at $38.29 on Wednesday. The firm has a market capitalization of $4.23 billion and a P/E ratio of 319.08. CarGurus has a 1-year low of $28.00 and a 1-year high of $57.25.

Several large investors have recently made changes to their positions in the business. FMR LLC grew its position in shares of CarGurus by 10.4% during the 3rd quarter. FMR LLC now owns 11,022,430 shares of the company’s stock worth $613,838,000 after purchasing an additional 1,040,330 shares in the last quarter. Hound Partners LLC acquired a new position in shares of CarGurus during the 3rd quarter worth approximately $190,790,000. BlackRock Inc. grew its position in shares of CarGurus by 19.6% during the 3rd quarter. BlackRock Inc. now owns 3,138,323 shares of the company’s stock worth $174,772,000 after purchasing an additional 513,304 shares in the last quarter. Bank of America Corp DE grew its position in shares of CarGurus by 877.9% during the 2nd quarter. Bank of America Corp DE now owns 681,579 shares of the company’s stock worth $23,678,000 after purchasing an additional 611,878 shares in the last quarter. Finally, Renaissance Technologies LLC acquired a new position in shares of CarGurus during the 3rd quarter worth approximately $33,520,000. Hedge funds and other institutional investors own 64.76% of the company’s stock.

In other CarGurus news, CEO Langley Steinert sold 176,109 shares of the stock in a transaction that occurred on Thursday, September 6th. The shares were sold at an average price of $48.16, for a total transaction of $8,481,409.44. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Oliver Ian Chrzan sold 6,000 shares of the stock in a transaction that occurred on Friday, November 16th. The stock was sold at an average price of $38.29, for a total transaction of $229,740.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 5,420,291 shares of company stock worth $265,550,396. Insiders own 51.03% of the company’s stock.

CarGurus Company Profile

CarGurus, Inc operates an online automotive marketplace connecting buyers and sellers of new and used cars worldwide. The company's marketplace enables users with third-party validation on pricing, dealer reputation, and other information. As of June 30, 2017, it had an active dealer network of approximately 40,000 dealers; and approximately 5.4 million car listings.

Further Reading: What do investors mean by earnings per share?

Earnings History and Estimates for CarGurus (NASDAQ:CARG)

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