Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
Zales Samuel, the Chief Operating Officer and President of CarGurus , Inc. (NASDAQ:CARG), recently executed a series of stock transactions according to a filing with the Securities and Exchange Commission. The transactions come as CarGurus stock has shown remarkable strength, delivering a 59% return over the past year. On January 2, Samuel sold 9,857 shares of Class A Common Stock at a price of $36.62 per share, amounting to a total of $360,963. This transaction was carried out as part of a Rule 10b5-1 trading plan.
In addition to the stock sale, Samuel exercised stock options to acquire 9,857 shares at a price of $35.61 each, totaling $351,007. The options exercise was also executed under a Rule 10b5-1 trading plan. Furthermore, 14,796 shares were withheld for tax liabilities upon the vesting of restricted stock units, valued at $35.73 per share, totaling $528,661. Eight analysts have recently revised their earnings estimates upward for the upcoming period, according to InvestingPro data.
Following these transactions, Samuel holds 420,025 shares of CarGurus. The company, currently valued at $3.84 billion, appears fairly valued according to InvestingPro analysis, which offers 15+ additional investment insights and a comprehensive Pro Research Report for deeper analysis of CARG's financial health and growth prospects.
In other recent news, CarGurus has reported strong third-quarter results, surpassing expectations with a 5% year-on-year increase in consolidated revenue to $231 million and a 15% growth in marketplace revenue, hitting $204 million. The company's non-GAAP consolidated adjusted EBITDA saw a significant rise of 33% year-over-year. The international business, particularly in Canada, contributed to the overall growth with a 23% revenue increase. In addition, CarGurus announced a $200 million share repurchase program, set to commence in January 2025.
Analysts from RBC Capital and B.Riley have adjusted their price targets for CarGurus to $42 and $40 respectively, maintaining positive ratings on the stock. The upgrades follow the company's robust Q3 performance and the anticipation of continued growth momentum, driven by factors such as significant growth in digital-lead adoption by dealers and strong international performance.
CarGurus is also launching new products and enhancing its product offerings, a move highlighted by analysts during the earnings call. Despite expecting challenging results in 2025, 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 are recent developments that reflect CarGurus' commitment to growth and strategic expansion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.