Carvana Co. (NYSE:CVNA) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Carvana has a consensus analyst rating of "Moderate Buy" from 24 firms, with 17 buy ratings and an average 1-year price target of about $93.14.
• The company recently reported strong quarterly results, posting $1.69 EPS versus the expected $0.32 and $6.43 billion in revenue, both ahead of estimates.
• Recent insider activity has leaned toward selling, including transactions by the CFO and a director, with insiders selling 400,812 shares worth about $28.0 million over the last 90 days.

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twenty-four ratings firms that are presently covering the stock, Marketbeat.com reports. Five research analysts have rated the stock with a hold recommendation, seventeen have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $93.1391.

Several research analysts have weighed in on CVNA shares. Wedbush lowered their price objective on shares of Carvana from $100.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, February 19th. Bank of America upped their target price on shares of Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 21st. BTIG Research reiterated a "buy" rating and issued a $97.00 target price on shares of Carvana in a research note on Friday, June 5th. Jefferies Financial Group reduced their target price on shares of Carvana from $97.00 to $95.00 and set a "buy" rating for the company in a research note on Tuesday, April 14th. Finally, Citizens Jmp upped their target price on shares of Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research note on Friday, May 1st.

Carvana Stock Performance

CVNA opened at $64.09 on Friday. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The company's fifty day moving average price is $71.20 and its two-hundred day moving average price is $75.23. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a market cap of $70.30 billion, a price-to-earnings ratio of 38.98, a PEG ratio of 10.82 and a beta of 3.45.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The firm had revenue of $6.43 billion for the quarter, compared to the consensus estimate of $6.12 billion. On average, analysts expect that Carvana will post 1.58 EPS for the current fiscal year.

Insider Transactions at Carvana

In other news, CFO Mark W. Jenkins sold 63,750 shares of the company's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $70.40, for a total value of $4,488,000.00. Following the completion of the sale, the chief financial officer owned 1,036,594 shares in the company, valued at $72,976,217.60. This represents a 5.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Danforth Quayle sold 14,525 shares of the company's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the sale, the director owned 214,960 shares of the company's stock, valued at approximately $15,047,200. The trade was a 6.33% 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. Over the last 90 days, insiders have sold 400,812 shares of company stock worth $28,039,446. 15.19% of the stock is owned by insiders.

Institutional Trading of Carvana

Institutional investors have recently made changes to their positions in the company. Gavilan Investment Partners LLC bought a new position in Carvana during the third quarter worth about $26,030,000. Intech Investment Management LLC boosted its position in Carvana by 301.4% during the third quarter. Intech Investment Management LLC now owns 7,230 shares of the company's stock worth $2,727,000 after purchasing an additional 5,429 shares during the period. TD Asset Management Inc boosted its position in Carvana by 5.2% during the third quarter. TD Asset Management Inc now owns 133,811 shares of the company's stock worth $50,479,000 after purchasing an additional 6,643 shares during the period. Picton Mahoney Asset Management boosted its position in Carvana by 581.4% during the third quarter. Picton Mahoney Asset Management now owns 16,491 shares of the company's stock worth $6,220,000 after purchasing an additional 14,071 shares during the period. Finally, Sands Capital Management LLC boosted its position in Carvana by 87.7% during the third quarter. Sands Capital Management LLC now owns 1,691,515 shares of the company's stock worth $638,107,000 after purchasing an additional 790,288 shares during the period. Institutional investors own 56.71% of the company's stock.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.

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