Steinert Langley, Executive Chair of CarGurus , Inc. (NASDAQ:CARG), recently sold a significant portion of the company's Class A Common Stock. The sale comes as the company's stock has shown remarkable strength, posting a 55% gain over the past year and trading near its 52-week high of $39.10. According to InvestingPro analysis, the stock is currently fairly valued. According to an SEC filing, Langley sold shares worth approximately $3.52 million over two days, December 16 and 17. The sales occurred at prices ranging from $37.2359 to $38.6253 per share.
This transaction involved multiple sales: On December 16, Langley sold a total of 42,875 shares, while on December 17, 50,449 shares were sold. Following these transactions, Langley retains direct ownership of 1,043,275 shares and indirect ownership of 67,722 shares through a family trust. These sales were executed under a pre-arranged trading plan, as noted in the filing.
In other recent news, CarGurus exhibited a strong third-quarter performance, with a 5% year-over-year increase in consolidated revenue to $231 million. The company's marketplace revenue also saw a significant growth of 15%, reaching $204 million. These results were further bolstered by a 33% increase in non-GAAP consolidated adjusted EBITDA. Analysts from B.Riley and RBC (TSX:RY) Capital Markets have both raised their price targets for CarGurus, citing the company's robust Q3 performance and promising growth indicators.
The analysts noted the company's growth momentum, driven by factors such as a rise in digital-lead adoption by dealers and an increase in up-sells and add-ons during renewals. CarGurus' international business, especially in Canada, also contributed to the overall growth with a 23% revenue increase. Furthermore, CarGurus announced a $200 million share repurchase program, set to commence in January 2025.
Despite anticipating challenging results in 2025, CarGurus remains optimistic about its growth drivers and product offerings. The company projects a fourth-quarter revenue between $219 million and $239 million, with marketplace revenue growth expected to be between 14% and 17% year-over-year. These recent developments reflect CarGurus' commitment to growth and strategic expansion.
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