Carvana's (CVNA) Buy Rating Reaffirmed at BTIG Research

Key Points

• BTIG Research reaffirmed its “Buy” rating on Carvana and set an $87 price target, implying 37.68% upside from the reported $63.19 share price. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $83.13.
• Carvana’s latest quarterly results exceeded expectations, with earnings of $0.42 per share versus a $0.39 consensus estimate and revenue of $7.38 billion versus $6.90 billion expected. Revenue increased 52.4% year over year.
• Company insiders sold 352,564 shares worth approximately $23.8 million during the last quarter under pre-arranged trading plans, while institutional investors and hedge funds own 56.71% of Carvana’s stock.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at BTIG Research in a report issued on Friday, Marketbeat Ratings reports. They presently have a $87.00 price objective on the stock. BTIG Research's price target indicates a potential upside of 37.68% from the company's current price.

A number of other equities research analysts have also recently weighed in on the company. Citigroup restated a "market outperform" rating on shares of Carvana in a research note on Monday, August 31st. Wells Fargo & Company set a $80.00 price objective on Carvana and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Citizens Jmp lowered their price objective on Carvana from $103.00 to $83.00 and set a "market outperform" rating for the company in a research report on Thursday, July 30th. Morgan Stanley set a $90.00 price objective on Carvana and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Finally, DA Davidson set a $67.00 price objective on Carvana in a research report on Thursday, July 30th. One 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's stock. Based on data from MarketBeat, Carvana currently has an average rating of "Moderate Buy" and a consensus target price of $83.13.

Carvana Stock Up 0.7%

Shares of NYSE CVNA opened at $63.19 on Friday. The company has a current ratio of 3.93, a quick ratio of 2.33 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $69.54 billion, a PE ratio of 34.95, a price-to-earnings-growth ratio of 1.81 and a beta of 3.55. The stock's fifty day simple moving average is $68.93 and its two-hundred day simple moving average is $68.57. Carvana has a 12-month low of $54.46 and a 12-month high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. The firm had revenue of $7.38 billion during the quarter, compared to analysts' expectations of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The firm's quarterly revenue was up 52.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.51 EPS. As a group, analysts expect that Carvana will post 1.67 EPS for the current fiscal year.

Insider Activity at Carvana

In other Carvana news, COO Benjamin Huston sold 50,000 shares of Carvana stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $71.55, for a total transaction of $3,577,500.00. Following the completion of the sale, the chief operating officer owned 478,693 shares of the company's stock, valued at approximately $34,250,484.15. The trade was a 9.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 16,789 shares of the business's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $70.58, for a total value of $1,184,967.62. Following the completion of the transaction, the insider directly owned 366,987 shares of the company's stock, valued at approximately $25,901,942.46. This trade represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 352,564 shares of company stock worth $23,800,480 in the last quarter. 15.19% of the stock is owned by insiders.

Hedge Funds Weigh In On Carvana

Institutional investors and hedge funds have recently modified their holdings of the stock. Sands Capital Management LLC boosted its position in Carvana by 44.4% during the fourth quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company's stock worth $1,030,798,000 after acquiring an additional 751,019 shares during the last quarter. Capricorn Fund Managers Ltd purchased a new position in Carvana in the 1st quarter worth approximately $29,866,000. Saudi Central Bank boosted its holdings in shares of Carvana by 806.1% during the 2nd quarter. Saudi Central Bank now owns 45,043 shares of the company's stock worth $2,965,000 after purchasing an additional 40,072 shares during the last quarter. Gavilan Investment Partners LLC grew its position in shares of Carvana by 24.6% in the fourth quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company's stock valued at $36,294,000 after purchasing an additional 17,000 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in shares of Carvana in the second quarter valued at approximately $23,046,000. Institutional investors and hedge funds own 56.71% of the company's stock.

Carvana Company Profile

Carvana Co is an online used-car retailer that enables customers to research, purchase, finance, trade in and sell vehicles through its digital platform. The company's services are designed to allow customers to complete much of the vehicle-buying process online, including selecting a vehicle, arranging financing, completing documentation and scheduling delivery or pickup.

Carvana offers a broad selection of used cars, trucks and sport utility vehicles. Its platform includes vehicle listings with photographs and inspection information, while its operations support vehicle reconditioning, logistics and customer delivery.