Needham & Company LLC Has Lowered Expectations for Carvana (NYSE:CVNA) Stock Price

Key Points

• Needham cut Carvana’s price target from $120 to $100 but maintained a “Buy” rating, implying about 70% upside from the prior close. Analysts overall hold a “Moderate Buy” consensus with an average target of $81.74.
• Carvana reported $8.04 billion in quarterly revenue, up 42.4% year over year and above estimates, but EPS of $0.39 missed the $0.44 consensus and declined from $1.03 a year earlier.
• Shares opened at $58.75, while insiders sold roughly 358,161 shares worth $24.2 million over the past 90 days; institutional investors own 56.71% of the stock.

Carvana (NYSE:CVNA - Get Free Report) had its target price cut by research analysts at Needham & Company LLC from $120.00 to $100.00 in a research report issued on Thursday, Marketbeat Ratings reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 70.20% from the company's previous close.

Several other brokerages have also issued reports on CVNA. Royal Bank Of Canada set a $82.00 price target on shares of Carvana and gave the company an "outperform" rating in a research note on Thursday, July 30th. BTIG Research set a $82.00 price objective on shares of Carvana in a research note on Thursday. DA Davidson set a $67.00 price target on Carvana in a research report on Thursday, July 30th. Citigroup reiterated a "market outperform" rating on shares of Carvana in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $80.00 price target on shares of Carvana in a research note on Friday, July 31st. 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's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $81.74.

Carvana Trading Down 0.8%

NYSE:CVNA opened at $58.75 on Thursday. Carvana has a twelve month low of $54.46 and a twelve month 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. The business has a 50 day moving average price of $65.89 and a two-hundred day moving average price of $69.64. The company has a market cap of $64.66 billion, a P/E ratio of 32.50, a price-to-earnings-growth ratio of 1.71 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.05). The business had revenue of $8.04 billion during the quarter, compared to analyst estimates of $7.71 billion. Carvana had a net margin of 6.26% and a return on equity of 37.06%. Carvana's revenue for the quarter was up 42.4% on a year-over-year basis. During the same quarter last year, the business earned $1.03 earnings per share. As a group, analysts expect that Carvana will post 1.63 EPS for the current fiscal year.

Insider Activity

In other news, CFO Mark Jenkins sold 63,750 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 value of $3,929,550.00. Following the transaction, the chief financial officer owned 1,142,502 shares in the company, valued at approximately $70,423,823.28. This trade represents a 5.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 shares were 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 owned 120,865 shares in the company, valued at approximately $7,450,118.60. The trade was 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 ninety days, insiders sold 358,161 shares of company stock valued at $24,164,285. Corporate insiders own 15.19% of the company's stock.

Institutional Trading of Carvana

Large investors have recently bought and sold shares of the business. Ascentis Independent Advisors acquired a new stake in Carvana during the 1st quarter valued at approximately $26,000. Annis Gardner Whiting Capital Advisors LLC raised its holdings in Carvana by 152.6% during 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 during the last quarter. Whipplewood Advisors LLC acquired a new position in shares of Carvana in the 1st quarter worth approximately $36,000. Leonteq Securities AG lifted its position in shares of Carvana by 106.8% in the 1st quarter. Leonteq Securities AG now owns 122 shares of the company's stock worth $38,000 after purchasing an additional 1,912 shares during the period. Finally, Root Financial Partners LLC boosted its stake in shares of Carvana by 114.1% in the 1st quarter. Root Financial Partners LLC now owns 289 shares of the company's stock valued at $91,000 after purchasing an additional 154 shares during the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported $8.04 billion in Q3 revenue, up 42.4% year over year and ahead of the roughly $7.71 billion consensus estimate. Retail vehicle units sold rose nearly 40%, underscoring strong demand and supporting the bullish reaction. Carvana Profit Soars as Vehicle Sales Climb Nearly 40%
• Positive Sentiment: The company generated 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
• Neutral Sentiment: Carvana posted approximately $289 million in net profit, with a 6.26% net margin and 37.06% return on equity. The earnings call indicated that management is placing greater emphasis on GAAP metrics and operational scale, which could improve investor confidence if sustained. Carvana Q3 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted earnings were weaker than expected: Q3 EPS was $0.39, below estimates ranging from $0.44 to $0.47 and down from $1.03 a year earlier. Lower gross profit per unit and weaker GPU performance indicate that Carvana is trading some profitability for rapid volume growth. 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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