Zales Samuel, the Chief Operating Officer and President of CarGurus , Inc. (NASDAQ:CARG), recently sold shares of the company valued at approximately $666,538. According to a filing with the Securities and Exchange Commission, Samuel sold 17,666 shares of Class A Common Stock on December 2, 2024, at a weighted average price of $37.73 per share. This transaction was conducted under a pre-established Rule 10b5-1 trading plan. The sale comes as CarGurus' stock trades near its 52-week high of $38.15, having delivered an impressive 75% return over the past year.
In addition to the sale, Samuel exercised stock options to acquire 17,666 shares of Class A Common Stock at a conversion price of $0.16 per share. Following these transactions, Samuel holds 442,321 shares of CarGurus directly. According to InvestingPro, the company maintains strong financial health with a GOOD overall rating, though technical indicators suggest the stock may be in overbought territory.
These transactions reflect Samuel's ongoing management of his equity holdings in CarGurus, a company specializing in computer processing and data preparation services. With a market capitalization of $3.95 billion and current trading multiples suggesting premium valuations, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US stocks including CarGurus.
In other recent news, CarGurus has reported strong third-quarter performance, surpassing expectations in its core marketplace operations. The company's consolidated revenue increased by 5% year-on-year to $231 million, with marketplace revenue growing by 15% to $204 million. The non-GAAP consolidated adjusted EBITDA saw a substantial rise of 33% year-over-year. Analysts from B.Riley and RBC Capital Markets have adjusted their price targets for CarGurus to $40 and $42 respectively, maintaining a positive outlook on the stock.
CarGurus' growth momentum is driven by factors such as significant growth in digital-lead adoption by dealers and an increase in up-sells and add-ons during renewals. The company's international business, particularly in Canada, contributed to the overall growth with a 23% revenue increase. Furthermore, CarGurus announced a $200 million share repurchase program, set to commence in January 2025.
Despite anticipating challenging results in 2025, CarGurus remains optimistic about its growth drivers and product offerings. The company projects 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, reflecting CarGurus' commitment to growth and strategic expansion.
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