How to buy CarGurus stock - 06 March

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How to buy CarGurus stock

Own CarGurus stock in just a few minutes.

Fact checked

CarGurus, Inc is an internet content & information business based in the US. CarGurus shares (CARG) are listed on the NASDAQ and all prices are listed in US Dollars. CarGurus employs 827 staff and has a trailing 12-month revenue of around USD$551.5 million.

How to buy shares in CarGurus

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for CarGurus. Find the stock by name or ticker symbol: CARG. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until CarGurus reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of CarGurus, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of CarGurus. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

CarGurus share price

Use our graph to track the performance of CARG stocks over time.

CarGurus shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$14.25 - USD$36.54
50-day moving average USD$31.0947
200-day moving average USD$26.5327
Wall St. target priceUSD$35.18
PE ratio 37.2279
Dividend yield N/A (0%)
Earnings per share (TTM) USD$0.68

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy CarGurus stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is CarGurus under- or over-valued?

Valuing CarGurus stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of CarGurus's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

CarGurus's P/E ratio

CarGurus's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 37x. In other words, CarGurus shares trade at around 37x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

CarGurus's PEG ratio

CarGurus's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.9451. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into CarGurus's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

CarGurus's EBITDA

CarGurus's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$114.6 million.

The EBITDA is a measure of a CarGurus's overall financial performance and is widely used to measure a its profitability.

CarGurus financials

Revenue TTM USD$551.5 million
Operating margin TTM 19.03%
Gross profit TTM USD$509.7 million
Return on assets TTM 14.64%
Return on equity TTM 24.6%
Profit margin 14.06%
Book value $3.295
Market capitalisation USD$3 billion

TTM: trailing 12 months

Shorting CarGurus shares

There are currently 9.8 million CarGurus shares held short by investors – that's known as CarGurus's "short interest". This figure is 3.9% down from 10.2 million last month.

There are a few different ways that this level of interest in shorting CarGurus shares can be evaluated.

CarGurus's "short interest ratio" (SIR)

CarGurus's "short interest ratio" (SIR) is the quantity of CarGurus shares currently shorted divided by the average quantity of CarGurus shares traded daily (recently around 1.1 million). CarGurus's SIR currently stands at 8.92. In other words for every 100,000 CarGurus shares traded daily on the market, roughly 8920 shares are currently held short.

However CarGurus's short interest can also be evaluated against the total number of CarGurus shares, or, against the total number of tradable CarGurus shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case CarGurus's short interest could be expressed as 0.08% of the outstanding shares (for every 100,000 CarGurus shares in existence, roughly 80 shares are currently held short) or 0.1082% of the tradable shares (for every 100,000 tradable CarGurus shares, roughly 108 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against CarGurus.

Find out more about how you can short CarGurus stock.

CarGurus share dividends

We're not expecting CarGurus to pay a dividend over the next 12 months.

CarGurus share price volatility

Over the last 12 months, CarGurus's shares have ranged in value from as little as $14.25 up to $36.54. A popular way to gauge a stock's volatility is its "beta".

CARG.US volatility(beta: 2)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while CarGurus's is 1.9989. This would suggest that CarGurus's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

CarGurus overview

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers. The company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom; and the Autolist and PistonHeads online marketplaces as independent brands in the United States and the United Kingdom. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

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