The stock of CarGurus, Inc. (NASDAQ:CARG) is now priced at $24.99 and the shares are 0.61 points up or 2.5% higher compared to its previous closing price of $24.38. The stock had 1.776 million contracts set over the past session. CARG shares’ daily volume is compared to its average trading volume at 1.372 million shares. However, it has a float of 78.41 million and although its performance was -3.1% over the week, it’s one to watch. Analysts have given the CARG stock a yearly average price target of $34.9 per share. It means the stock’s upside potential is 39.66% with the CARG share price recently placing at $24.44 to $25.43. However, some brokerage firms have priced the stock below the average, including one that has called $31.
The shorts are climbing into the CarGurus, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the CARG shares have risen. Short interest in the stock represents just 11.56% of its float, but the volume has raised by 591095. The volume of shorted shares rised to 9.065 million from 8.474 million shares over the last two weeks. The average intraday trading volume has been 1.658 million shares, which means that days to cover moved to roughly 5.467113.
In the last trading session, CarGurus, Inc. (NASDAQ:CARG) dropped by -$0.8 over the week and lost -$5.43 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $40.91. The stock recorded its established 52-week high on 11/20/19.
Since 03/18/20, the stock has traded to a low of $14.25 at 75.37%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, CarGurus, Inc.’s two-week RSI is 39.51. This suggests that the stock is neutral at the moment and that CARG shares’ price movement remains stable. The stochastic readings are equally revealing at 15.52% meaning the CARG share price is currently in overbought territory.
The technical chart shows that the CARG stock will likely settle at between $25.47 and $25.94 per share. However, if the stock dips below $24.48, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $23.96.
Currently, the stock is trading in the red of MACD, with a reading of -0.86. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at BTIG Research cut their recommendation for CARG from Buy to Neutral in August 07 review. Piper Sandler analysts see the stock as a Neutral with a target price of $27 in a flash note released to investors on July 28 initiating covering the stock. Citigroup seeing the stock struggling downgraded it from Buy to Neutral on May 11 placing it at $28.
The average rating for the CARG equity is 2.08 and is currently gathering a bullish momentum. Of 14 analysts tracking CarGurus, Inc. polled by Reuters, 6 rated CARG as a hold. The remaining 8 analysts were split evenly. However, the split wasn’t equal as a majority (8) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the CARG stock price is 30.07X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 65.8 above the group’s average of 44.7. CarGurus, Inc. has its P/E ratio at 9.5, which means that the stock is currently trading at a premium relative to the 6.1 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for CarGurus, Inc. (NASDAQ:CARG) will decrease by about -99.86%, which will see them reach $135 million. The company’s full-year revenues are, however, expected to diminish by about -10.66%, down from $589 million to $526 million. CARG’s expected adjusted earnings should surge almost 57.14% to end up at $0.22 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 32.69% to record $0.69/share.