Carvana (NYSE:CVNA) Price Target Raised to $85.00

Key Points

• Citizens JMP raised Carvana’s price target to $85 from $83 and maintained a “market outperform” rating, implying approximately 24% upside from the reported price. Analysts overall rate the stock “Moderate Buy,” with an average target of $82.
• Carvana reported strong revenue growth, with quarterly revenue rising 42.4% year over year to $8.04 billion and exceeding estimates, but earnings per share of $0.39 missed the $0.44 consensus estimate.
• Analyst sentiment remains broadly positive, though valuation and profitability are concerns: some firms raised targets, while others maintained neutral ratings near $67, citing elevated valuation and pressure on margins.

Carvana (NYSE:CVNA - Get Free Report) had its price objective hoisted by equities researchers at Citizens Jmp from $83.00 to $85.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "market outperform" rating on the stock. Citizens Jmp's target price points to a potential upside of 24.16% from the company's current price.

A number of other equities analysts have also recently commented on CVNA. UBS Group reaffirmed a "buy" rating and issued a $84.00 target price (up from $83.00) on shares of Carvana in a report on Thursday. Wells Fargo & Company restated an "overweight" rating and set a $75.00 price target (down from $80.00) on shares of Carvana in a research report on Friday, October 23rd. Evercore set a $75.00 price objective on shares of Carvana in a research note on Thursday, July 30th. DA Davidson reiterated a "neutral" rating and set a $67.00 price target on shares of Carvana in a research note on Thursday. Finally, BTIG Research set a $82.00 price target on Carvana and gave the stock a "buy" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Carvana has an average rating of "Moderate Buy" and an average price target of $82.00.

Carvana Price Performance

Carvana stock opened at $68.46 on Friday. The stock has a market capitalization of $75.34 billion, a price-to-earnings ratio of 34.37, a PEG ratio of 1.75 and a beta of 3.55. The stock's 50 day moving average price is $65.85 and its two-hundred day moving average price is $69.54. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93.

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

Insider Transactions at Carvana

In related news, COO Benjamin E. Huston sold 50,000 shares of the company's stock in a transaction dated 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 sale, the chief operating officer owned 478,693 shares of the company's stock, valued at $34,250,484.15. The trade was a 9.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen Palmer sold 5,000 shares of Carvana stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $61.64, for a total transaction of $308,200.00. Following the sale, the vice president directly owned 120,865 shares of the company's stock, valued at $7,450,118.60. This represents a 3.97% decrease in their position. 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. Over the last three months, insiders have sold 358,161 shares of company stock worth $24,164,285. Insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Saudi Central Bank grew its stake in shares of Carvana by 806.1% in the 2nd quarter. Saudi Central Bank now owns 45,043 shares of the company's stock worth $2,965,000 after buying an additional 40,072 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Carvana during the 2nd quarter valued at $23,046,000. Parkwood LLC boosted its stake in Carvana by 3,147.7% in the 2nd quarter. Parkwood LLC now owns 139,000 shares of the company's stock worth $9,149,000 after purchasing an additional 134,720 shares during the period. Fund 1 Investments LLC purchased a new position in Carvana during the 2nd quarter valued at approximately $3,126,000. Finally, Hsbc Holdings PLC raised its position in shares of Carvana by 239.6% during the 4th quarter. Hsbc Holdings PLC now owns 221,727 shares of the company's stock valued at $93,748,000 after buying an additional 156,430 shares in the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Record sales and revenue: Carvana reported third-quarter revenue of $8.04 billion, up 42.4% year over year and ahead of the $7.71 billion consensus estimate. Retail units sold reached 217,385, an increase of nearly 40%, marking the eighth consecutive quarter of approximately 40% growth. Carvana Q3 2026 Earnings Call Highlights
• Positive Sentiment: Profitability and balance-sheet progress: Carvana generated $289 million in quarterly profit, positive free cash flow, and improved its net debt position to its best level in nearly five years. Management also reiterated an ambitious long-term opportunity, targeting 3 million annual retail units and a 12.5% operating margin by 2030–2035. Carvana Continues To Improve
• Positive Sentiment: Analyst support: Morgan Stanley reportedly called Carvana a top pick following the results, while Needham maintained a Buy rating despite reducing its price target from $120 to $100. The lower target still implies substantial upside based on the reference price. Morgan Stanley Names CVNA a Top Pick
• Neutral Sentiment: Valuation remains debated: The strong operating performance has reignited discussion over whether Carvana’s rapid growth justifies its elevated valuation, particularly as the broader auto industry remains challenging. Carvana Q3 Results Reignite the Valuation Debate
• Negative Sentiment: EPS and margins disappointed: Adjusted earnings of $0.39 per share missed estimates of roughly $0.44–$0.47, while earnings declined from $1.03 per share a year earlier. Lower gross profit per unit contributed to pressure on profitability. Carvana Misses Q3 Earnings Estimates
• Negative Sentiment: Cautious analyst targets: BNP Paribas Exane lowered its target from $69 to $67 and kept a Neutral rating; DA Davidson also maintained Neutral with a $67 target. These targets reflect limited near-term upside and ongoing concerns about valuation and execution.

Carvana Company Profile

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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