Cargurus CEO sells shares worth $140,057

Published 03/04/2025, 21:20
Cargurus CEO sells shares worth $140,057

In a recent transaction disclosed in an SEC filing, Zachary Emerson (NYSE:EMR) Hallowell, the CEO of CarOffer, a subsidiary of CarGurus , Inc. (NASDAQ:CARG), sold 4,892 shares of Class A Common Stock. The company, currently valued at $2.84 billion, has shown strong fundamentals with an impressive 83.73% gross profit margin. According to InvestingPro analysis, the stock appears slightly undervalued despite its volatile price movements. This sale, executed on April 2, 2025, was carried out under a pre-established Rule 10b5-1 trading plan, fetching approximately $140,057 at a price of $28.63 per share.

Additionally, on April 1, 2025, Hallowell had 2,551 shares withheld to cover tax liabilities upon the vesting of restricted stock units, valued at $74,591 at a price of $29.24 per share. Following these transactions, Hallowell retains direct ownership of 134,238 shares of CarGurus.

In other recent news, CarGurus Inc. reported mixed fourth-quarter 2024 earnings results, with total revenue slightly missing analyst estimates, although adjusted EBITDA exceeded expectations. Marketplace revenue was reported at $210 million, just shy of the $211 million estimate. Analyst firms, including BTIG and Citi, have adjusted their price targets for CarGurus, citing various performance metrics. BTIG lowered its target to $40 while maintaining a Buy rating, and Citi reduced its target to $40, maintaining a Neutral stance. JMP analysts also revised their price target to $43, attributing the change to mixed earnings results, yet they maintained a Market Outperform rating.

In addition to financial performance, CarGurus announced executive changes, with CFO Elisa Palazzo set to step down in March 2025, and CEO Jason Trevisan assuming her responsibilities temporarily. The company is actively searching for a new CFO while ensuring continuity in financial leadership. Analysts have noted challenges in CarGurus’ Digital Wholesale segment, but the core Marketplace business shows promising revenue growth and margin expansion. Looking ahead, CarGurus anticipates first-quarter 2025 revenue to be between $216 and $236 million, below consensus estimates, with potential headwinds from seasonal advertising and foreign exchange effects.

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