Traders Purchase Large Volume of Put Options on CarGurus (CARG)

CarGurus Inc (NASDAQ:CARG) was the target of unusually large options trading on Tuesday. Stock traders acquired 1,286 put options on the company. This represents an increase of approximately 2,043% compared to the typical daily volume of 60 put options.

Shares of NASDAQ CARG opened at $37.62 on Wednesday. The stock has a market capitalization of $4.54 billion, a price-to-earnings ratio of 66.00, a price-to-earnings-growth ratio of 37.27 and a beta of 1.93. CarGurus has a fifty-two week low of $29.18 and a fifty-two week high of $57.25.

CarGurus (NASDAQ:CARG) last released its earnings results on Thursday, February 28th. The company reported $0.11 EPS for the quarter, topping the Zacks’ consensus estimate of $0.04 by $0.07. CarGurus had a return on equity of 15.03% and a net margin of 13.10%. The firm had revenue of $126.09 million during the quarter, compared to the consensus estimate of $122.13 million. Sell-side analysts forecast that CarGurus will post 0.22 EPS for the current year.

Several brokerages have weighed in on CARG. Zacks Investment Research raised CarGurus from a “hold” rating to a “buy” rating and set a $43.00 price target for the company in a report on Friday, March 29th. BidaskClub raised CarGurus from a “sell” rating to a “hold” rating in a report on Friday, April 5th. Citigroup raised their price target on CarGurus from $45.00 to $52.00 and gave the stock a “buy” rating in a report on Friday, March 1st. Oppenheimer began coverage on CarGurus in a report on Tuesday, January 8th. They issued a “buy” rating and a $42.00 price target for the company. Finally, Benchmark reissued a “buy” rating and issued a $50.00 price target on shares of CarGurus in a report on Friday, March 1st. Two research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $49.27.

In related news, VP Sarah Amory Welch sold 2,500 shares of the firm’s stock in a transaction dated Tuesday, February 12th. The stock was sold at an average price of $39.49, for a total transaction of $98,725.00. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, COO Samuel Zales sold 18,000 shares of the firm’s stock in a transaction dated Thursday, April 11th. The stock was sold at an average price of $39.96, for a total value of $719,280.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,906,370 shares of company stock worth $116,430,621. Insiders own 34.51% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in CARG. Hound Partners LLC lifted its holdings in shares of CarGurus by 61.5% during the fourth quarter. Hound Partners LLC now owns 5,532,298 shares of the company’s stock worth $186,604,000 after purchasing an additional 2,106,372 shares during the period. Vanguard Group Inc lifted its holdings in shares of CarGurus by 20.2% during the third quarter. Vanguard Group Inc now owns 4,512,695 shares of the company’s stock worth $251,312,000 after purchasing an additional 759,094 shares during the period. Vanguard Group Inc. lifted its holdings in shares of CarGurus by 20.2% during the third quarter. Vanguard Group Inc. now owns 4,512,695 shares of the company’s stock worth $251,312,000 after purchasing an additional 759,094 shares during the period. BlackRock Inc. lifted its holdings in shares of CarGurus by 20.8% during the fourth quarter. BlackRock Inc. now owns 3,790,254 shares of the company’s stock worth $127,846,000 after purchasing an additional 651,931 shares during the period. Finally, Renaissance Technologies LLC acquired a new stake in shares of CarGurus during the third quarter worth about $33,520,000. 72.05% of the stock is owned by hedge funds and other institutional investors.

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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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