Insider Selling: Carvana Co. (NYSE:CVNA) CEO Sells 10,000 Shares of Stock

Key Points

• Carvana CEO Ernest C. Garcia III sold $3,484,700 worth of stock, reducing his ownership by 1.80% to 546,440 shares valued at approximately $190.42 million.
• Carvana's stock price increased by 1.5%, reaching $350.17, following the recent positive performance and strong quarterly earnings report, which showed a revenue increase of 41.9% year-over-year.
• Several brokerages have upgraded Carvana's stock rating, with Oppenheimer setting a new price target of $450 and indicating an "outperform" rating.

Carvana Co. (NYSE:CVNA - Get Free Report) CEO Ernest C. Garcia III sold 10,000 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $348.47, for a total value of $3,484,700.00. Following the completion of the transaction, the chief executive officer directly owned 546,440 shares in the company, valued at $190,417,946.80. This trade represents a 1.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Carvana Price Performance

Shares of NYSE CVNA traded up $11.98 during midday trading on Monday, reaching $361.97. 1,151,874 shares of the stock traded hands, compared to its average volume of 4,151,633. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58. Carvana Co. has a one year low of $124.39 and a one year high of $413.33. The company's 50 day moving average is $337.99 and its 200 day moving average is $275.89. The stock has a market capitalization of $77.90 billion, a PE ratio of 90.72, a P/E/G ratio of 1.16 and a beta of 3.57.

Carvana (NYSE:CVNA - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.09 by $0.19. The business had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.54 billion. Carvana had a return on equity of 40.57% and a net margin of 3.46%. Carvana's revenue was up 41.9% on a year-over-year basis. During the same period in the previous year, the company posted ($0.05) EPS. On average, equities research analysts anticipate that Carvana Co. will post 2.85 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CVNA. Caxton Associates LLP acquired a new stake in Carvana in the second quarter valued at approximately $7,610,000. FORA Capital LLC acquired a new position in Carvana during the second quarter worth $2,946,000. Evergreen Capital Management LLC purchased a new stake in shares of Carvana in the second quarter valued at about $244,000. Headlands Technologies LLC acquired a new stake in shares of Carvana during the 2nd quarter worth approximately $705,000. Finally, CANADA LIFE ASSURANCE Co increased its position in shares of Carvana by 8.9% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 122,356 shares of the company's stock worth $41,325,000 after purchasing an additional 10,005 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company's stock.

Wall Street Analyst Weigh In

CVNA has been the topic of several analyst reports. Piper Sandler raised their target price on Carvana from $340.00 to $440.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. William Blair reaffirmed an "outperform" rating on shares of Carvana in a research report on Wednesday, July 23rd. Bank of America boosted their price target on shares of Carvana from $375.00 to $425.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Needham & Company LLC lifted their price objective on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Gordon Haskett initiated coverage on shares of Carvana in a research report on Monday, July 14th. They set a "hold" rating and a $329.00 target price for the company. Seven analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $383.47.

Carvana Company Profile

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.