Cargurus CEO Zachary Emerson has $83,978 worth of stock at Investing.com.

BOSTON—Zachary Emerson (NYSE: ), CEO of CarOffer, the CarGurus Inc. (NASDAQ: ), recently sold a portion of its stake in the company. According to its Form 4 filing with the Securities and Exchange Commission, Emerson sold 2,203 shares of CarGurus’ Class A Common Stock on Jan. 17 at an average price of $38.12 per share, for a total of $83,978. The sale comes as CarGurus trades near a 52-week high of $39.10, with the stock having returned an impressive 62% over the past year. InvestingPro data shows the company has a good financial health score, with 15+ additional insights available to subscribers.

In a separate transaction on Jan. 16, Emerson was divested of 1,865 shares to cover a tax liability on the delivery of restricted stock units, at a price of 37.65 per share. Following these transactions, Emerson will own 115,983 shares of CarGurus’ Class A common stock.

The sale was made under the previously established Rule 10b5-1 business plan, which allows the company’s owners to set a predetermined schedule for selling shares, providing a level of separation from trading time and insider information.

In other recent news, CarGurus posted impressive financial performance, increasing consolidated revenue by 5% year-over-year to $231 million and posting 15% growth in market revenue to $204 million. The company’s non-GAAP consolidated adjusted EBITDA grew 33 percent year-over-year. Analysts at Needham, B.Riley and RBC Capital Markets all raised their price targets for the company, citing confidence in CarGurus’ business model and growth potential.

These recent developments indicate that CarGurus has been successful in capturing the attention and spending of trade customers while maintaining a gross profit margin of 80.76% compared to its competitors. The company’s international business, particularly in Canada, contributed to the overall growth with a 23 percent increase in revenue. CarGurus has announced a $200 million buyback program starting in January 2025.

In the year While expecting challenging results in 2025, CarGurus remains optimistic about its growth drivers and product offerings, estimating fourth-quarter revenue between $219 million and $239 million, with marketplace revenue growth expected to be between 14% and 17% year over year. Needham’s analysis indicates that CarGurus is not being fully leveraged on its competitive advantages and that dealers will benefit as they rely on data to drive their businesses. The new price target is based on a multiple of 15x projected adjusted EBITDA, an increase from the previously used multiple of 12.5x.

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