Traders Purchase Large Volume of Call Options on CarGurus (NASDAQ:CARG)

CarGurus Inc (NASDAQ:CARG) was the recipient of some unusual options trading activity on Tuesday. Investors bought 978 call options on the company. This represents an increase of approximately 1,503% compared to the average daily volume of 61 call options.

Several equities analysts have recently weighed in on CARG shares. ValuEngine raised shares of CarGurus from a “hold” rating to a “buy” rating in a research report on Tuesday. Consumer Edge assumed coverage on shares of CarGurus in a research report on Friday, August 2nd. They set an “overweight” rating on the stock. Cowen assumed coverage on shares of CarGurus in a research report on Monday, May 20th. They set a “market perform” rating and a $42.00 price target on the stock. Benchmark reaffirmed a “buy” rating and set a $51.00 price target on shares of CarGurus in a research report on Friday, May 10th. Finally, BTIG Research lowered their price target on shares of CarGurus to $48.00 and set a “buy” rating on the stock in a research report on Wednesday, April 17th. Two research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $48.92.

In other news, Director Anastasios Parafestas sold 60,000 shares of the stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $38.89, for a total value of $2,333,400.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Samuel Zales sold 18,000 shares of the stock in a transaction dated Monday, May 13th. The shares were sold at an average price of $38.59, for a total transaction of $694,620.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,749,813 shares of company stock valued at $100,077,566. Corporate insiders own 34.51% of the company’s stock.

Large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp raised its holdings in shares of CarGurus by 12.4% during the fourth quarter. Bank of New York Mellon Corp now owns 171,330 shares of the company’s stock worth $5,779,000 after acquiring an additional 18,891 shares in the last quarter. Dimensional Fund Advisors LP bought a new position in CarGurus during the fourth quarter worth $686,000. Squarepoint Ops LLC raised its stake in CarGurus by 26.8% during the fourth quarter. Squarepoint Ops LLC now owns 19,229 shares of the company’s stock worth $649,000 after buying an additional 4,060 shares during the last quarter. Legal & General Group Plc raised its stake in CarGurus by 17.4% during the fourth quarter. Legal & General Group Plc now owns 20,035 shares of the company’s stock worth $676,000 after buying an additional 2,968 shares during the last quarter. Finally, Amalgamated Bank bought a new position in CarGurus during the fourth quarter worth $246,000. Institutional investors and hedge funds own 74.81% of the company’s stock.

CARG opened at $32.88 on Wednesday. The firm has a 50 day moving average of $36.63. CarGurus has a 1-year low of $30.29 and a 1-year high of $57.25. The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 0.25. The firm has a market cap of $4.01 billion, a P/E ratio of 57.68, a P/E/G ratio of 4.00 and a beta of 1.83.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, May 9th. The company reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.09. CarGurus had a net margin of 13.94% and a return on equity of 18.43%. The company had revenue of $135.30 million for the quarter, compared to the consensus estimate of $129.54 million. During the same period last year, the company posted $0.06 EPS. The firm’s quarterly revenue was up 37.2% compared to the same quarter last year. On average, equities analysts predict that CarGurus will post 0.23 earnings per share for the current fiscal year.

CarGurus Company Profile

CarGurus, Inc operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace.

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