Carvana Co. (NYSE:CVNA) CEO Ernest C. Garcia III Sells 7,080 Shares

Key Points

• Carvana's CEO Ernest C. Garcia III sold 7,080 shares of stock for a total of $2,487,133.20, reducing his ownership by 1.21% while still retaining 577,900 shares valued at approximately $203 million.
• The company's stock price rose to $357.05, supported by a strong quarterly earnings report which showed earnings of $1.28 per share, exceeding estimates and reflecting a 41.9% revenue increase year-over-year.
• Analysts have generally upgraded their ratings for Carvana, with target prices ranging from $275.00 to $450.00, contributing to an average rating of "Moderate Buy" for the stock.

Carvana Co. (NYSE:CVNA - Get Free Report) CEO Ernest C. Garcia III sold 7,080 shares of the company's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $351.29, for a total transaction of $2,487,133.20. Following the transaction, the chief executive officer owned 577,900 shares in the company, valued at $203,010,491. The trade was a 1.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Carvana Stock Performance

Carvana stock traded up $2.16 during trading hours on Thursday, reaching $357.05. 2,180,172 shares of the company were exchanged, compared to its average volume of 4,235,505. The firm has a market cap of $76.46 billion, a price-to-earnings ratio of 89.49, a PEG ratio of 1.16 and a beta of 3.57. The company has a current ratio of 4.00, a quick ratio of 2.58 and a debt-to-equity ratio of 2.51. The stock has a 50-day moving average of $336.17 and a 200 day moving average of $270.13. Carvana Co. has a 12 month low of $124.39 and a 12 month high of $413.33.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%. The company had revenue of $4.84 billion during the quarter, compared to analysts' expectations of $4.54 billion. During the same period in the prior year, the business earned ($0.05) earnings per share. Carvana's revenue for the quarter was up 41.9% compared to the same quarter last year. As a group, research analysts anticipate that Carvana Co. will post 2.85 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Robert W. Baird upped their target price on shares of Carvana from $200.00 to $275.00 and gave the stock a "neutral" rating in a research note on Thursday, May 8th. Oppenheimer raised shares of Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 price target for the company in a report on Friday, July 25th. Wells Fargo & Company raised their target price on shares of Carvana from $390.00 to $425.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Stephens lifted their price objective on shares of Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a report on Monday, July 7th. Finally, William Blair reaffirmed an "outperform" rating on shares of Carvana in a report on Wednesday, July 23rd. Six analysts have rated the stock with a hold rating and thirteen have given a buy rating to the stock. According to MarketBeat, Carvana currently has an average rating of "Moderate Buy" and an average target price of $379.65.

Institutional Investors Weigh In On Carvana

Hedge funds have recently modified their holdings of the business. Hilltop National Bank acquired a new position in shares of Carvana in the second quarter valued at $25,000. Brooklyn Investment Group boosted its holdings in Carvana by 961.5% in the first quarter. Brooklyn Investment Group now owns 138 shares of the company's stock valued at $29,000 after acquiring an additional 125 shares during the last quarter. N.E.W. Advisory Services LLC bought a new position in Carvana in the first quarter valued at about $33,000. SJS Investment Consulting Inc. boosted its holdings in Carvana by 960.0% during the second quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock worth $36,000 after buying an additional 96 shares during the last quarter. Finally, LRI Investments LLC bought a new position in Carvana during the second quarter worth about $42,000. 56.71% of the stock is owned by institutional investors.

About Carvana

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.