Steinert Langley, Executive Chair of CarGurus , Inc. (NASDAQ:CARG), recently executed a series of stock sales amounting to approximately $3.78 million. These transactions, completed on January 16 and 17, 2025, involved the sale of Class A Common Stock at prices ranging from $37.3361 to $38.12 per share. The sales were conducted under a pre-arranged Rule 10b5-1 trading plan. According to InvestingPro data, the stock is trading near its 52-week high of $39.10, having delivered an impressive 61.91% return over the past year.
On January 16, Langley sold 45,407 shares at an average price of $37.647 and an additional 5,042 shares at the same price. The following day, Langley sold 44,606 shares at $37.3361, 801 shares at $38.12, and 4,953 shares at $37.3361, along with a smaller transaction of 89 shares at $38.12. Despite these insider sales, InvestingPro analysis reveals that management has been actively buying back shares, and the company maintains a strong financial health score.
Post-transaction, Langley holds 798,056 shares directly, with additional shares held indirectly through a family trust. These transactions are part of regular portfolio management and diversification strategies. The company's solid financial position is reflected in its current ratio of 2.95, indicating strong liquidity. For deeper insights into CarGurus' valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro.
In other recent news, CarGurus Inc. has been the subject of various analyst adjustments following a strong third quarter performance. Needham reiterated a Buy rating on the company's shares and increased its price target to $45, citing the company's successful dealer momentum. Similarly, B.Riley and RBC Capital Markets adjusted their price targets upwards to $40 and $42 respectively, due to robust Q3 results and promising growth indicators.
CarGurus reported a 5% year-on-year increase in consolidated revenue to $231 million, with marketplace revenue growing by 15% to reach $204 million. The company's non-GAAP consolidated adjusted EBITDA also rose significantly by 33%. Additionally, CarGurus' international business, particularly in Canada, contributed to the overall growth with a 23% revenue increase.
The company also announced a $200 million share repurchase program, set to commence in 2025. Despite anticipating challenging results in 2025, CarGurus remains optimistic about its growth drivers and product offerings, projecting a fourth-quarter revenue between $219 million and $239 million, with marketplace revenue growth expected to be between 14% and 17% year-over-year.
Analysts from Needham, B.Riley, and RBC Capital Markets highlighted CarGurus' strategic positioning, execution, and the growing momentum in the used auto sector as key factors behind their positive outlook. The recent developments reflect CarGurus' commitment to growth and strategic expansion in the market.
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