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BOSTON—Steinert Langley, the Executive Chair of CarGurus , Inc. (NASDAQ:CARG), a $3 billion market cap company with impressive 83.7% gross margins and strong financial health according to InvestingPro, recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission.
On March 26 and 27, Langley executed sales of CarGurus’ Class A common stock totaling $1,398,224. The shares were sold at prices ranging from $28.43 to $31.332 per share. The transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks. With analyst targets ranging from $34 to $45 per share, InvestingPro analysis suggests the stock may be currently undervalued.
The sales included 20,640 shares at an average price of $31.332 on March 26 and various transactions on March 27, involving smaller blocks of shares at different prices. Following these transactions, Langley retains direct ownership of 1,014,770 shares and indirect ownership of 56,433 shares through The Langley Steinert Irrevocable Family Trust, where his children are beneficiaries.
This move comes as CarGurus continues to navigate the competitive landscape of online automotive marketplaces, where it has established itself as a leading platform for buying and selling vehicles.
In other recent news, CarGurus Inc. reported its fourth-quarter 2024 earnings, revealing a mixed performance. The company’s EBITDA met guidance expectations, though it did not exceed them as it had in previous quarters. Marketplace revenue was reported at $210 million, slightly below analyst estimates but within the company’s guidance range. Despite these figures, CarGurus added 131 U.S. dealers, surpassing expectations. Looking ahead, the company anticipates first-quarter 2025 revenue to be between $216 and $236 million, which is below the consensus estimate of $239 million.
Changes in executive leadership were also announced, with CFO Elisa Palazzo stepping down in March 2025. CEO Jason Trevisan will assume the roles of principal financial officer and principal accounting officer until a new CFO is appointed. Analyst firms have adjusted their outlooks on CarGurus, with JPMorgan downgrading the stock to Neutral and setting a price target of $34. BTIG and Citi both reduced their price targets to $40, while JMP lowered theirs to $43, maintaining a Market Outperform rating. These adjustments follow the company’s recent financial performance and anticipated challenges in the Digital Wholesale segment.
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