Carvana (NYSE:CVNA) Price Target Raised to $82.00

Key Points

• Barclays raised Carvana’s price target from $80 to $82 and maintained an “overweight” rating, implying approximately 23% upside from the stock’s $66.52 price.
• Analyst sentiment is broadly positive but mixed: Carvana has a “Moderate Buy” consensus rating and an average target of $82.09, while DA Davidson and BNP Paribas Exane maintained neutral ratings with $67 targets.
• Carvana’s quarterly revenue rose 42.4% year over year to $8.04 billion, exceeding expectations, but EPS of $0.39 missed consensus estimates. Shares fell 2.6% in Friday trading, and insiders have sold roughly $24.2 million of stock over the past quarter.

Carvana (NYSE:CVNA - Get Free Report) had its price target boosted by investment analysts at Barclays from $80.00 to $82.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Barclays's price objective indicates a potential upside of 23.27% from the stock's current price.

A number of other research firms also recently commented on CVNA. DA Davidson reiterated a "neutral" rating and set a $67.00 target price on shares of Carvana in a research report on Thursday. BNP Paribas Exane cut their target price on Carvana from $69.00 to $67.00 and set a "neutral" rating on the stock in a research report on Thursday. Weiss Ratings cut shares of Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, September 22nd. BTIG Research set a $82.00 price objective on shares of Carvana and gave the company a "buy" rating in a research note on Thursday. Finally, Hovde Group lifted their price objective on Carvana from $39.50 to $48.00 and gave the stock a "market perform" rating in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $82.09.

Carvana Stock Down 2.6%

Carvana stock traded down $1.79 during trading on Friday, reaching $66.52. The stock had a trading volume of 1,301,710 shares, compared to its average volume of 12,982,173. The business has a 50 day moving average price of $65.85 and a 200 day moving average price of $69.54. The stock has a market cap of $73.21 billion, a PE ratio of 33.49, a P/E/G ratio of 1.75 and a beta of 3.55. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.05). Carvana had a return on equity of 36.63% and a net margin of 6.21%. The firm had revenue of $8.04 billion for the quarter, compared to analysts' expectations of $7.71 billion. During the same period in the previous year, the business posted $1.03 EPS. The business's revenue for the quarter was up 42.4% compared to the same quarter last year. On average, analysts predict that Carvana will post 1.63 EPS for the current year.

Insiders Place Their Bets

In other Carvana news, COO Benjamin E. Huston sold 50,000 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $71.55, for a total value of $3,577,500.00. Following the transaction, the chief operating officer owned 478,693 shares in the company, valued at approximately $34,250,484.15. This represents a 9.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen Palmer sold 5,000 shares of the company's stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $61.64, for a total value of $308,200.00. Following the completion of the transaction, the vice president directly owned 120,865 shares in the company, valued at approximately $7,450,118.60. The trade was a 3.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 358,161 shares of company stock valued at $24,164,285 over the last quarter. 15.19% of the stock is owned by insiders.

Hedge Funds Weigh In On Carvana

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp increased its position in Carvana by 417.1% during the second quarter. State Street Corp now owns 29,435,364 shares of the company's stock worth $1,937,436,000 after acquiring an additional 23,742,422 shares during the period. Spruce House Investment Management LLC boosted its holdings in shares of Carvana by 2.6% during the 1st quarter. Spruce House Investment Management LLC now owns 2,335,000 shares of the company's stock valued at $734,077,000 after acquiring an additional 60,000 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in Carvana by 2.4% in the 1st quarter. Bank of New York Mellon Corp now owns 710,264 shares of the company's stock valued at $223,293,000 after buying an additional 16,692 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Carvana by 345.8% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,325,237 shares of the company's stock valued at $218,867,000 after buying an additional 2,579,295 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Carvana by 10.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 604,729 shares of the company's stock worth $190,009,000 after purchasing an additional 57,040 shares during the last quarter. Institutional investors own 56.71% of the company's stock.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record third-quarter revenue of $8.04 billion, exceeding the $7.71 billion analyst consensus, while retail units sold rose nearly 40% year over year to 217,385. The results suggest the company continues to gain share in a sluggish used-car market. Carvana Profit Soars as Vehicle Sales Climb Nearly 40%
• Positive Sentiment: Management highlighted positive free cash flow and a net-debt position at its strongest level in nearly five years. Longer-term plans call for 3 million annual retail units and a 12.5% operating margin, supporting the bullish growth narrative. Carvana Continues To Improve
• Positive Sentiment: Morgan Stanley reportedly named Carvana a top pick after the quarterly report, while Citizens JMP raised its price target to $85 and maintained a “market outperform” rating. Needham also retained a “buy” rating despite lowering its target to $100. Morgan Stanley Names Carvana a Top Pick
• Neutral Sentiment: Analyst opinion remains mixed: DA Davidson reaffirmed “neutral” with a $67 target, while BNP Paribas Exane cut its target to $67 and kept a neutral rating. These targets indicate limited upside based on current valuation assumptions.
• Negative Sentiment: Third-quarter EPS was $0.39, below consensus estimates ranging from $0.44 to $0.47. Lower gross profit per unit and margin pressure are fueling concerns that rapid sales growth may not translate proportionally into earnings. Carvana Misses Q3 Earnings Estimates

About Carvana

Carvana Co NYSE: CVNA is an online automotive retailer that sells used vehicles through its digital platform. Customers can browse vehicles, review detailed descriptions and vehicle history information, arrange financing, complete transactions online and choose home delivery or pickup at a Carvana location.

The company also provides vehicle trade-in services and offers related products, including vehicle protection plans and other automotive services. Carvana is known for its automated, glass-enclosed vehicle vending machines, which provide an alternative pickup experience in select markets.

Founded in 2012 and headquartered in Tempe, Arizona, Carvana began operations as an online used-car retailer in 2013 and went public in 2017.

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