Alta Fox Capital Establishes Significant $41 Million Stake in CarGurus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy CARG?
Source: NASDAQ.COM
Alta Fox Capital's Investment: Alta Fox Capital has acquired 1,098,700 shares of CarGurus, valued at approximately $40.90 million, making it the fund's 4th-largest holding and representing 9.1% of its reportable assets.
CarGurus Overview: CarGurus operates a leading digital platform in the automotive market, focusing on connecting buyers and sellers while leveraging data-driven insights to enhance vehicle transactions.
Market Performance: As of December 8, 2025, CarGurus shares were priced at $35.84, reflecting a 1-year return of -7%, underperforming the S&P 500 by 20 percentage points.
Investment Strategy: Alta Fox's investment aligns with its strategy of targeting undervalued small-cap stocks, and despite some challenges, CarGurus maintains a strong market position and has shown resilience with a free cash flow margin of 17%.
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Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 33.850
Low
40.00
Averages
42.38
High
45.00
Current: 33.850
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. (CarGurus) offers a multinational, online automotive platform for buying and selling vehicles that offer both digital retail solutions and the CarOffer digital wholesale platform. The CarGurus platform enables consumers to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, instantly acquire, effectively market, and quickly sell vehicles, all with a nationwide reach. It operates through two segments: U.S. Marketplace and Digital Wholesale. The U.S. Marketplace segment provides marketplace services for customers within the United States. Digital Wholesale segment provides Dealer-to-Dealer and Instant Max Cash Offer (IMCO) services and products which are sold on the CarOffer platform. The Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. It also operates independent brands, the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CarGurus and Tennant Executives Increase Stock Holdings
- Executive Purchase: CarGurus Director Stephen Kaufer bought 30,766 shares at $32.50 each on Tuesday, totaling a $1 million investment, indicating strong confidence in the company's future prospects.
- Market Reaction: Kaufer's purchase saw a 7.5% increase at the peak of Thursday's trading, with CARG reaching a high of $34.93, reflecting positive market sentiment towards the stock.
- Tennant Investment: On the same day, James T. Glerum Jr. purchased 8,163 shares of Tennant at $61.25 each, totaling approximately $499,980, marking his first buy in the past year and signaling optimism about the company's outlook.
- Stock Fluctuation: While Glerum Jr.'s investment is currently up about 4.4%, Tennant's stock dipped 0.1% on Thursday, indicating a cautious market stance towards its shares.
See More
CARG Stock 52-Week Highs and Lows Analysis
- Price Fluctuation Analysis: CARG's stock has a 52-week low of $24.65 and a high of $39.42, with the last trade at $34.13, indicating significant price movement within this range and reflecting market interest and investor sentiment changes.
- Market Trend Observation: The current price of $34.13 is approximately 86.7% of the 52-week high, suggesting strong performance in the market, which may attract more investor attention, especially influenced by technical indicators like the 200-day moving average.
- Investor Sentiment Assessment: The price fluctuations of CARG stock could impact investor decisions, particularly as the current price approaches the high point, leading investors to consider profit-taking or holding for potential further gains.
- Technical Analysis Signals: CARG's performance is closely tied to its 200-day moving average, and investors should monitor changes in this indicator to assess future price trends and market sentiment.
See More
CARG Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $27.00 put option is 35 cents, and if an investor sells this contract, their effective purchase price for the stock drops to $26.65, representing an approximately 11% discount from the current price of $30.40, making it attractive for those interested in CARG shares.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 1.30% return on cash commitment, equating to an annualized yield of 10.30%, indicating that this strategy can achieve substantial returns while managing risk effectively.
- Call Option Returns: By purchasing CARG shares at the current price of $30.40 and selling the $32.00 call option, investors could realize a total return of 7.07% if the stock is called away at expiration, highlighting the potential profitability of this strategy.
- Risk Assessment: Current data suggests a 57% chance that the $32.00 call option will expire worthless, allowing investors to retain both their shares and the premium collected, which would represent an additional 1.81% return, annualized at 14.37%.
See More
CarGurus Reports Strong Q4 Earnings and Positive Guidance
- Significant Sales Growth: CarGurus achieved sales of $241.1 million in Q4, representing a 15% year-over-year increase, exceeding market expectations by $2 million, primarily driven by a 7% increase in paying dealers and an 8% rise in average revenue per subscribing dealer, indicating the company's sustained competitive strength in the market.
- Improved Profitability: The company reported an adjusted profit of $61 million, or $0.63 per share, a 17% increase from the previous year and in line with expectations, while operating income rose by 13% to $88.5 million, demonstrating effective strategies in cost control and revenue growth.
- Optimistic Outlook: CarGurus expects adjusted earnings per share to range between $0.52 and $0.58 in Q1, with sales projected between $240.5 million and $245.5 million, both above Wall Street estimates, reflecting the company's confidence in market trends and positive business outlook.
- Long-Term Growth Potential: Revenue for FY26 is anticipated to grow by 10% to 13%, reaching between $997.7 million and $1.02 billion, surpassing the $993.98 million market estimate, indicating that the company's strategic focus on international expansion and AI-driven product launches will provide sustained growth momentum.
See More
CARGURUS INC: JP Morgan Lowers Price Target from $43 to $36
- Company Update: JP Morgan has reduced its target price for Cargurus Inc.
- New Target Price: The new target price is set at $36, down from the previous $43.
See More
CarGurus Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: CarGurus reported Q4 2025 revenue of $241 million, a 15% year-over-year increase, with full-year revenue reaching $907 million, up 14%, indicating strong market performance and profitability.
- Accelerated International Expansion: The international segment saw Q4 revenue grow by 32% year-over-year and 27% for the full year, driven by accelerated dealer acquisitions and increased wallet share, further solidifying CarGurus' position in the global market.
- Innovative Product Launches: The company launched more new products in 2025 than in any prior year, with expectations for these monetized dealer products to grow approximately 15x in 2026, achieving eight-figure revenue levels, reflecting strong confidence in product innovation and market demand.
- Share Repurchase Program: CarGurus repurchased about $350 million in shares in 2025 and announced a new $250 million share repurchase program, demonstrating confidence in its value and commitment to shareholders.
See More
CarGurus and Tennant Executives Increase Stock Holdings
- Executive Purchase: CarGurus Director Stephen Kaufer bought 30,766 shares at $32.50 each on Tuesday, totaling a $1 million investment, indicating strong confidence in the company's future prospects.
- Market Reaction: Kaufer's purchase saw a 7.5% increase at the peak of Thursday's trading, with CARG reaching a high of $34.93, reflecting positive market sentiment towards the stock.
- Tennant Investment: On the same day, James T. Glerum Jr. purchased 8,163 shares of Tennant at $61.25 each, totaling approximately $499,980, marking his first buy in the past year and signaling optimism about the company's outlook.
- Stock Fluctuation: While Glerum Jr.'s investment is currently up about 4.4%, Tennant's stock dipped 0.1% on Thursday, indicating a cautious market stance towards its shares.
See More
CARG Stock 52-Week Highs and Lows Analysis
- Price Fluctuation Analysis: CARG's stock has a 52-week low of $24.65 and a high of $39.42, with the last trade at $34.13, indicating significant price movement within this range and reflecting market interest and investor sentiment changes.
- Market Trend Observation: The current price of $34.13 is approximately 86.7% of the 52-week high, suggesting strong performance in the market, which may attract more investor attention, especially influenced by technical indicators like the 200-day moving average.
- Investor Sentiment Assessment: The price fluctuations of CARG stock could impact investor decisions, particularly as the current price approaches the high point, leading investors to consider profit-taking or holding for potential further gains.
- Technical Analysis Signals: CARG's performance is closely tied to its 200-day moving average, and investors should monitor changes in this indicator to assess future price trends and market sentiment.
See More
CARG Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $27.00 put option is 35 cents, and if an investor sells this contract, their effective purchase price for the stock drops to $26.65, representing an approximately 11% discount from the current price of $30.40, making it attractive for those interested in CARG shares.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 1.30% return on cash commitment, equating to an annualized yield of 10.30%, indicating that this strategy can achieve substantial returns while managing risk effectively.
- Call Option Returns: By purchasing CARG shares at the current price of $30.40 and selling the $32.00 call option, investors could realize a total return of 7.07% if the stock is called away at expiration, highlighting the potential profitability of this strategy.
- Risk Assessment: Current data suggests a 57% chance that the $32.00 call option will expire worthless, allowing investors to retain both their shares and the premium collected, which would represent an additional 1.81% return, annualized at 14.37%.
See More
CarGurus Reports Strong Q4 Earnings and Positive Guidance
- Significant Sales Growth: CarGurus achieved sales of $241.1 million in Q4, representing a 15% year-over-year increase, exceeding market expectations by $2 million, primarily driven by a 7% increase in paying dealers and an 8% rise in average revenue per subscribing dealer, indicating the company's sustained competitive strength in the market.
- Improved Profitability: The company reported an adjusted profit of $61 million, or $0.63 per share, a 17% increase from the previous year and in line with expectations, while operating income rose by 13% to $88.5 million, demonstrating effective strategies in cost control and revenue growth.
- Optimistic Outlook: CarGurus expects adjusted earnings per share to range between $0.52 and $0.58 in Q1, with sales projected between $240.5 million and $245.5 million, both above Wall Street estimates, reflecting the company's confidence in market trends and positive business outlook.
- Long-Term Growth Potential: Revenue for FY26 is anticipated to grow by 10% to 13%, reaching between $997.7 million and $1.02 billion, surpassing the $993.98 million market estimate, indicating that the company's strategic focus on international expansion and AI-driven product launches will provide sustained growth momentum.
See More
CARGURUS INC: JP Morgan Lowers Price Target from $43 to $36
- Company Update: JP Morgan has reduced its target price for Cargurus Inc.
- New Target Price: The new target price is set at $36, down from the previous $43.
See More
CarGurus Q4 2025 Earnings Call Highlights
- Significant Revenue Growth: CarGurus reported Q4 2025 revenue of $241 million, a 15% year-over-year increase, with full-year revenue reaching $907 million, up 14%, indicating strong market performance and profitability.
- Accelerated International Expansion: The international segment saw Q4 revenue grow by 32% year-over-year and 27% for the full year, driven by accelerated dealer acquisitions and increased wallet share, further solidifying CarGurus' position in the global market.
- Innovative Product Launches: The company launched more new products in 2025 than in any prior year, with expectations for these monetized dealer products to grow approximately 15x in 2026, achieving eight-figure revenue levels, reflecting strong confidence in product innovation and market demand.
- Share Repurchase Program: CarGurus repurchased about $350 million in shares in 2025 and announced a new $250 million share repurchase program, demonstrating confidence in its value and commitment to shareholders.
See More
