Wellington Management Group LLP, a renowned investment firm, recently made a significant transaction involving CarGurus Inc. This article will delve into the details of this transaction, provide an overview of both entities, and analyze the potential implications of this move.
Details of the Transaction
On July 31, 2023, Wellington Management Group LLP reduced its stake in CarGurus Inc by 40.38%, selling off 5,466,656 shares. This transaction, executed at a price of $22.66 per share, had a minor impact of -0.02% on the firm's portfolio. Following this transaction, Wellington Management Group LLP now holds 8,070,127 shares of CarGurus Inc, representing 0.04% of their portfolio and 8.29% of CarGurus Inc's total shares.
Profile of Wellington Management Group LLP
Wellington Management Group LLP is a privately-owned investment manager, established in 1928 by Walter Morgan. The firm has grown significantly over the years, with over $900 billion total assets under management from over 2000 clients. Wellington Management Group LLP employs almost 600 investment professionals who provide over 200 investment approaches to clients. The firm's top holdings include Apple Inc(AAPL, Financial), Alphabet Inc(GOOGL, Financial), Microsoft Corp(MSFT, Financial), Pfizer Inc(PFE, Financial), and UnitedHealth Group Inc(UNH, Financial). The firm's preferred sectors are Healthcare and Technology. 
Overview of CarGurus Inc
CarGurus Inc, a US-based company, operates as an online automotive marketplace connecting buyers and sellers of new and used cars. The company went public on October 12, 2017, and has a market capitalization of $2.05 billion. As of the date of this article, CarGurus Inc's stock price stands at $18.07, with a PE percentage of 51.63. According to GuruFocus, the stock is significantly undervalued, with a GF Value of 48.17 and a Price to GF Value ratio of 0.38. The company's GF Score stands at 89/100, indicating good outperformance potential. 
Performance of CarGurus Inc
CarGurus Inc has a Financial Strength rank of 7/10, a Profitability Rank of 8/10, and a Growth Rank of 9/10. The company's Piotroski F-Score is 6, indicating a stable financial situation. The Altman Z Score is 6.74, suggesting low bankruptcy risk. The company's Cash to Debt ratio is 2.17, ranking 316th in the Vehicles & Parts industry. CarGurus Inc's ROE and ROA are 27.70 and 16.54, respectively, with the company ranking 82nd in terms of ROE and 38th in terms of ROA.
Industry Position of CarGurus Inc
CarGurus Inc operates in the Vehicles & Parts industry. Over the past three years, the company has seen a revenue growth of 35.50%. The company's RSI over 5, 9, and 14 days are 31.93, 32.10, and 35.36, respectively. The Momentum Index over 6 - 1 month and 12 - 1 month are 37.84 and 9.91, respectively.
Largest Guru Holding CarGurus Inc
The guru with the most shares in CarGurus Inc is Gotham Asset Management, LLC.
Conclusion
In conclusion, Wellington Management Group LLP's recent transaction involving CarGurus Inc is a significant move that could have implications for both entities. Despite the reduction in stake, Wellington Management Group LLP still holds a considerable number of shares in CarGurus Inc. The transaction's impact on the stock and the guru's portfolio will be interesting to monitor in the coming months.
