Carvana (NYSE:CVNA) Stock Keeps Neutral Rating at DA Davidson

Key Points

• DA Davidson maintained its “neutral” rating on Carvana and set a $67 price target, implying 2.28% downside from the prior close.
• Carvana shares rose 16.1% to $68.56, despite quarterly EPS of $0.39 missing the $0.44 consensus estimate; revenue reached $8.04 billion, up 42.4% year over year and above expectations.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an $82 average price target, although insiders sold more than $24 million of stock over the past 90 days.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "neutral" rating reissued by DA Davidson in a note issued to investors on Thursday, Benzinga reports. They presently have a $67.00 price target on the stock. DA Davidson's target price would suggest a potential downside of 2.28% from the stock's previous close.

A number of other research firms have also recently commented on CVNA. BTIG Research set a $82.00 price target on Carvana and gave the company a "buy" rating in a research note on Thursday. Citizens Jmp cut their price objective on shares of Carvana from $103.00 to $83.00 and set a "market outperform" rating on the stock in a report on Thursday, July 30th. Oppenheimer set a $90.00 price objective on Carvana and gave the company an "outperform" rating in a report on Wednesday, September 30th. Royal Bank Of Canada set a $82.00 target price on Carvana and gave the stock an "outperform" rating in a report on Thursday, July 30th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $85.00 price target on shares of Carvana in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, Carvana has a consensus rating of "Moderate Buy" and a consensus target price of $82.00.

Carvana Stock Up 16.1%

NYSE:CVNA traded up $9.51 during midday trading on Thursday, reaching $68.56. 12,173,638 shares of the stock traded hands, compared to its average volume of 12,986,790. Carvana has a 12-month low of $54.46 and a 12-month high of $97.38. The business has a 50-day moving average of $65.89 and a two-hundred day moving average of $69.64. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93. The stock has a market capitalization of $75.45 billion, a PE ratio of 37.84, a price-to-earnings-growth ratio of 1.71 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings results 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 37.06% and a net margin of 6.26%. The firm had revenue of $8.04 billion during the quarter, compared to analysts' expectations of $7.71 billion. During the same period in the prior year, the firm posted $1.03 earnings per share. Carvana's revenue for the quarter was up 42.4% compared to the same quarter last year. On average, equities analysts forecast that Carvana will post 1.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, VP Stephen Palmer sold 5,000 shares of Carvana stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $61.64, for a total value of $308,200.00. Following the sale, the vice president directly owned 120,865 shares in the company, valued at $7,450,118.60. The trade was a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Quayle sold 14,525 shares of Carvana stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $75.00, for a total transaction of $1,089,375.00. Following the sale, the director owned 214,960 shares of the company's stock, valued at approximately $16,122,000. The trade was a 6.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 358,161 shares of company stock worth $24,164,285. Corporate insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Ascentis Independent Advisors bought a new position in shares of Carvana in the first quarter valued at $26,000. Annis Gardner Whiting Capital Advisors LLC increased its stake in Carvana by 152.6% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock worth $30,000 after purchasing an additional 58 shares in the last quarter. Transamerica Financial Advisors LLC raised its holdings in shares of Carvana by 558.0% during the second quarter. Transamerica Financial Advisors LLC now owns 454 shares of the company's stock valued at $30,000 after acquiring an additional 385 shares during the period. GoalVest Advisory LLC boosted its position in shares of Carvana by 400.0% in the second quarter. GoalVest Advisory LLC now owns 500 shares of the company's stock worth $33,000 after buying an additional 400 shares during the period. Finally, Cypress Capital Management LLC WY increased its holdings in shares of Carvana by 400.0% in the 2nd quarter. Cypress Capital Management LLC WY now owns 500 shares of the company's stock valued at $33,000 after purchasing an additional 400 shares during the period. Institutional investors and hedge funds own 56.71% of the company's stock.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Record revenue and vehicle sales: Third-quarter revenue reached $8.04 billion, up 42.4% year over year and above the $7.71 billion analyst estimate. Retail units sold rose nearly 40% to approximately 217,385, signaling strong demand for used vehicles. Carvana Surges as Record Sales Overshadow Earnings Miss
• Positive Sentiment: Improving financial position: Management highlighted positive free cash flow and net debt at its best level in nearly five years. The company also reported quarterly net income of about $289 million, supporting the view that its turnaround and scale strategy are progressing. Carvana Continues to Improve
• Positive Sentiment: Long-term growth ambitions: Carvana reiterated targets of 3 million annual retail units and a 12.5% operating margin by 2030–2035, while emphasizing greater focus on GAAP profitability and cash generation. Carvana Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst remains bullish despite target cut: Needham lowered its price target from $120 to $100 but maintained a “buy” rating, leaving substantial implied upside based on the cited price. The reduction suggests expectations have become more conservative even as the analyst remains positive. Needham Analyst Ratings
• Negative Sentiment: EPS and margin pressure: Adjusted earnings were $0.39 per share, below consensus estimates ranging from $0.44 to $0.47 and down from $1.03 a year earlier. Lower gross profit per unit and reduced GPU profits remain risks to the company’s profitability narrative. Carvana Misses Q3 Earnings Estimates

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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