What happens to stocks if AI loses momentum?
Steinert Langley, Executive Chair at CarGurus Inc. (NASDAQ:CARG), has sold a significant portion of the company’s Class A common stock. According to a recent SEC filing, Langley sold shares totaling approximately $1.46 million. The sales occurred over several transactions between March 28 and April 1, 2025, with prices ranging from $28.6453 to $29.667 per share. The company, currently valued at $3.05 billion, has seen its stock decline 20% year-to-date, according to InvestingPro data.
The transactions were conducted under a Rule 10b5-1 trading plan, a pre-arranged trading strategy that allows insiders to sell stocks at predetermined times to avoid accusations of insider trading. Following these sales, Langley still retains a substantial number of shares in both direct and indirect ownership capacities. Notably, InvestingPro analysis shows management has been actively buying back shares, while the company maintains strong financial health with a current ratio of 4.2.
This series of sales highlights ongoing activity by executives in the tech and automotive sectors, where CarGurus operates as a leading online automotive marketplace. Investors may view such transactions as part of regular portfolio management or as indicative of executives’ perspectives on the company’s future performance. With analyst targets ranging from $34 to $45 per share and the company showing impressive gross profit margins of 84%, detailed analysis is available in the comprehensive Pro Research Report on InvestingPro, along with 13 additional key insights about the company’s performance and outlook.
In other recent news, CarGurus Inc. reported its fourth-quarter 2024 earnings with a mixed outcome. The company’s EBITDA met guidance expectations, though it slightly missed the U.S. Quarterly Average Revenue per Selling Dealer estimates. Marketplace revenue was reported at $210 million, just below the analyst’s estimate but within the company’s guidance range. Analysts from BTIG and Citi adjusted their price targets for CarGurus to $40, while JMP lowered it to $43, all citing the mixed earnings results and ongoing challenges in the Digital Wholesale segment. Additionally, JPMorgan downgraded CarGurus’ stock rating from Overweight to Neutral, reflecting concerns about a potentially challenging cyclical environment. In executive news, CarGurus announced that CFO Elisa Palazzo will step down in March 2025, with CEO Jason Trevisan assuming her responsibilities until a new CFO is appointed. Despite these developments, CarGurus’ core Marketplace business showed signs of growth, driven by increased penetration of premium tier packages and newer product adoption. The company is also planning to invest in product development and international expansion throughout 2025.
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