As of Thursday close, CarGurus Inc.’s (NASDAQ:CARG) stock was up $0.01, moving up 0.06 percent to $17.55. The average number of shares traded per day over the past five days has been 1,488,020 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.74 fall in that time frame. In the last twenty days, the average volume was 1,129,250, while in the previous 50 days, it was 1,232,364.
Since last month, CARG stock retreated -2.39%. Shares of the company fell to $17.22 on 09/21/23, the lowest level in the past month. A 52-week high of $24.22 was reached on 07/19/23 after having rallying from a 52-week low of $9.14. Since the beginning of this year, CARG’s stock price has risen by 25.27% or $3.54, and marked a new high 29 times. However, the stock has declined by -27.54% since its 52-week high.
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Valuation Metrics
Right now, CarGurus Inc. (CARG) has a P/E ratio of about 8.05. The stock’s beta is 1.62. Besides these, the trailing price-to-sales (P/S) ratio of 1.74, the price-to-book (PB) ratio of 2.84, and the price-to-cash flow ratio of 8.49 may also be considered.
Financial Health
In the three months ended June 29, CarGurus Inc.’s quick ratio stood at 4.80, while its current ratio was 4.80, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 51.20% percent. In the year ended June 29, EBITDA margin amounted to 9.96%, whereas operating margins totaled 7.60%. Based on annual data, CARG earned $657.55 million in gross profit and brought in $1.66 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 10.40%. Return on equity (ROE) for the past 12 months was 44.10%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CARG’s revenue fell -113.78% to $231.96 million during the quarter, while net income inched up to $239.14 million. While analysts expected CarGurus Inc. to report $0.23 quarterly earnings, the actual figure was $0.29 per share, beating the consensus estimate by 26.10%. During the quarter, the company generated $32.4 million in EBITDA. The liabilities of CarGurus Inc. were 339.47 million at the end of its most recent quarter ended June 29, and its total debt was $207.05 million. The value of shareholders’ equity is $113.5 million.
Technical Picture
This quick technical analysis looks at CarGurus Inc.’s (CARG) price momentum. With a historical volatility rate of 29.99%, the RSI 9-day stood at 37.04% on 21 September.
With respect to its five-day moving average, the current CarGurus Inc. price is down by -4.05% percent or -$0.74. At present, CARG shares trade -4.26% below its 20-day simple moving average and +6.75% percent above its 100-day simple moving average. However, the stock is currently trading approximately -25.82% below its SMA50 and +34.17% above its SMA200.
Stochastic coefficient K was 21.16% and Stochastic coefficient D was 24.46%, while ATR was 0.50. Given the Stochastic reading of 20.89% for the 14-day period, the RSI (14) reading has been calculated as 38.29%. As of today, the MACD Oscillator reading stands at -0.28, while the 14-day reading stands at -0.47.
Analyst Ratings
UBS launched its rating on CarGurus Inc. (NASDAQ: CARG) to a Neutral in a note to investors on September 15, 2023. CarGurus Inc. (CARG) has been rated Overweight by analysts. According to 1 brokerage firm, CARG is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate CarGurus Inc. stock as buy, with 9 recommending it as overweight.
With a median target price of $23.00, the current consensus forecast for the stock is $15.00 – $28.00. Based on these forecasts, analysts predict CarGurus Inc. (CARG) will achieve an average price target of $23.17.
