Public Sector Pension Investment Board Increases Stake in CarGurus Amid Mixed Analyst Views
Public Sector Pension Investment Board raised its stake in CarGurus during the third quarter, bolstering the institutional presence in the used-car marketplace even as insiders trimmed holdings and analysts offered a range of price targets. The move highlights continued institutional interest in cargurus as the company navigates mixed market sentiment and recent volatility.
Institutional buyer expands position
Regulatory filings show Public Sector Pension Investment Board increased its holding in CarGurus by 29. 0% in the third quarter, buying an additional 83, 700 shares and bringing its total to 372, 214 shares. The position represents roughly 0. 37% of the company and was valued at about $13. 86 million at the time of the disclosure.
Smaller institutional maneuvers were also disclosed for the period. Several investment managers either established new, modest positions or upped existing stakes: one asset manager initiated a position valued at approximately $27, 000, while others increased holdings by large percentage points but from small bases — moves that translated to stakes worth tens of thousands of dollars. Collectively, institutional investors now control a dominant share of the company’s stock, with institutional ownership near 87%.
Buyers appearing in the filings pursued incremental exposure rather than blockbuster purchases, a pattern common for firms seeking to participate in a sector that has shown both resilience and sensitivity to macroeconomic trends. The larger purchase by a public pension investor underscores longer-term confidence in the business model, even as shorter-term indicators have fluctuated.
Insider selling, analyst mix and market backdrop
Insiders have been net sellers in recent months. Executives and other insiders sold a combined 49, 003 shares valued at roughly $1. 86 million over the last quarter. Notable insider transactions include a sale of 2, 358 shares by one executive on Wednesday, December 31 (ET) at an average price of $38. 10, and a sale of 1, 645 shares on Monday, February 2 (ET) at an average price of $32. 21. Those sales slightly reduced the insiders’ collective ownership, which still accounts for roughly 17% of outstanding stock.
On the market-performance front, CarGurus shares opened recent trading sessions in the mid-to-high $20s, with a market capitalization in the neighborhood of $2. 6 billion. Key valuation metrics show a price-to-earnings ratio under 20 and a PEG near 1. 0, while technicals place the stock’s 50-day and 200-day moving averages in the mid-$30 range. The 52-week trading range spans roughly $24. 65 on the low end to about $40. 37 at the high.
Analysts remain divided. The consensus recommendation across covering analysts is a Hold, driven by a split between buy and hold opinions. Price targets issued over recent months vary, with several research updates moving targets in a roughly $37 to $44 range. That dispersion reflects differing views on growth prospects, margins and the competitive landscape for online automotive marketplaces.
For investors, the combination of increased institutional exposure, continued insider selling and a mixed analyst picture creates a nuanced backdrop. Institutional accumulation suggests confidence in long-term fundamentals, while insider sales and analyst caution point to near-term uncertainty. Market participants will likely track upcoming quarterly results and any guidance updates closely for clearer directional signals.
