CarGurus Could Be Driven Lower By Lockup Expiration

The 180-day lockup period for CarGurus, Incorporated (CARG) ends on April 10, 2018. (Source: Nasdaq.com) When this six-month period concludes, the company’s pre-IPO shareholders will have the ability to sell their more than 67 million currently-restricted shares.

(Source: S-1/A)

The potential for an increase in the volume of shares traded on the secondary market could negatively impact the stock price of CARG when the lockup expires.

Currently CARG trades in the $33 to $35 range, more than double its IPO price of $16. Shares of CarGurus have fluctuated during this six-month period, reaching a high of $38.53 on March 12 after dipping to $29.40 on February 9.

Business Overview: Online Auto Marketplace

CarGurus operates an online auto marketplace that brings together buyers and sellers of both new and used cars around the world. The platform provides third-party validation on dealer reputations, pricing, and other key data related to car purchases. Through June 2017, CarGurus had a network of close to 40,000 dealers and 5.4 million automobile listings. The company is headquartered in Cambridge, Massachusetts, and was founded in 2005.