CarGurus $CARG Stock In Downtrend Channel, MACD Sell Signal, Dark Pool Trades

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CarGurus $CARG stock dropped -4.78% on November 28, 2022. The stock is trading in a downtrend channel and the MACD gave a new Sell signal on November 28, 2022.

CarGurus stock chart on November 28 2022 in downtrend channel with a MACD sell signal and positive money flow
CarGurus stock chart on November 28 2022 in downtrend channel with a MACD sell signal and positive money flow

Dark Pool Trading In CarGurus $CARG Stock

Unusually large dark pool trades occurred in CarGurus $CARG stock on November 22, 2022. The two dark pool trades were valued at $13 million and $10 million. We think the dark pool trades were sell orders because $CARG stock fell following the trades hitting the tape.

CarGurus stock chart on November 28 2022 with dark pool trades shown with orange bars
CarGurus stock chart on November 28 2022 with dark pool trades shown with orange bars

CarGurus price target lowered at DA Davidson

On November 10, 2022, DA Davidson analyst Tom White maintained a Neutral rating on the stock while lowering the price target for CarGurus from $30 to $11.50. Mr. White cited the company’s Q3 earnings miss, below-consensus guidance, and a drop in retail demand for used cars as reasons for lowering the price target. White stated that as the wholesale auto industry increasingly moves to digital, he still believes that the long-term prospects for CarOffer are positive.

CarGurus Announces Q3 2022 Results

On November 8, 2022, CarGurus announced financial results for the third quarter ended September 30, 2022. The company missed EPS and revenue estimates which caused the downtrend in the stock. CarGurus reported Q3 EPS of 21c versus the consensus estimate of 26c. The company reported Q3 revenue of $426.5M versus the consensus estimate of $461.91M.

Bottom Line: As the economy slows down, CarGurus is increasingly feeling the pain from revenue compression, which is causing institutional investors to reduce long positions in the stock.

Auto sales stalling: LMC forecasts demand erosion for industry

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