Steinert Langley, Executive Chair of CarGurus , Inc. (NASDAQ:CARG), recently sold a significant portion of the company's Class A common stock. The transactions, which took place over several days, involved the sale of shares worth approximately $5.54 million. The shares were sold at prices ranging from $36.25 to $38.09 per share. This insider activity comes as CarGurus stock has shown remarkable strength, delivering a 51% return over the past year according to InvestingPro data.
The sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which allows company insiders to set up a predetermined schedule for selling stocks. Langley, who holds multiple roles at CarGurus, including that of director and officer, continues to maintain a substantial shareholding in the company. Notably, analysts maintain a bullish outlook on CarGurus, with price targets reaching as high as $46 per share.
As of the latest filings, Langley retains direct ownership of 907,057 shares and indirect ownership of 52,593 shares through a family trust. The recent transactions reflect Langley's ongoing strategy to manage his investment in CarGurus while adhering to regulatory guidelines. InvestingPro analysis shows CarGurus maintains strong financial health, with liquid assets exceeding short-term obligations. For deeper insights into CarGurus' valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, CarGurus Inc. posted a robust third-quarter performance, with consolidated revenue increasing by 5% year-over-year to $231 million. The company's marketplace revenue also saw a significant 15% growth, reaching $204 million. Additionally, non-GAAP consolidated adjusted EBITDA rose by a substantial 33%, indicating strong financial health. A $200 million share repurchase program, set to commence in January 2025, was also announced.
Analysts from B.Riley and RBC (TSX:RY) Capital Markets have respectively adjusted their price targets for CarGurus to $40.00 and $42.00, maintaining a positive outlook on the company's shares following the strong Q3 results. The analysts highlighted CarGurus' successful launch of new products and its focus on enhancing product offerings as well as improving lead quality.
Despite expecting challenging results in 2025, CarGurus is optimistic about its growth drivers and product offerings. The company anticipates 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 strategic expansion and growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.