Carvana Co. (NYSE:CVNA) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Carvana has an average recommendation of Moderate Buy from 25 analysts (17 Buys, 7 Holds, 1 Strong Buy) with an average 1‑year price target of $437.41.
• The company reported a large quarterly beat — EPS $4.22 vs. $1.10 expected and revenue of $5.60 billion, up 58% year‑over‑year.
• Carvana announced a 5-for-1 stock split effective May 7; shares recently traded around $410 with a 52‑week range of $229.40–$486.89.

Carvana Co. (NYSE:CVNA - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-five analysts that are presently covering the firm, Marketbeat.com reports. Seven analysts have rated the stock with a hold recommendation, seventeen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $437.4091.

A number of equities analysts have commented on CVNA shares. JPMorgan Chase & Co. dropped their price objective on shares of Carvana from $490.00 to $455.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Royal Bank Of Canada lowered their target price on shares of Carvana from $500.00 to $440.00 and set an "outperform" rating for the company in a report on Thursday, February 19th. UBS Group set a $485.00 target price on shares of Carvana in a report on Friday, February 20th. BTIG Research lowered their target price on shares of Carvana from $535.00 to $455.00 and set a "buy" rating for the company in a report on Thursday, February 19th. Finally, DA Davidson lowered their target price on shares of Carvana from $470.00 to $320.00 and set a "neutral" rating for the company in a report on Thursday, February 19th.

Carvana Stock Performance

Shares of NYSE:CVNA opened at $410.06 on Friday. Carvana has a 52 week low of $229.40 and a 52 week high of $486.89. The stock has a market capitalization of $89.74 billion, a P/E ratio of 51.00 and a beta of 3.61. The firm has a fifty day simple moving average of $332.57 and a two-hundred day simple moving average of $370.67. The company has a quick ratio of 2.73, a current ratio of 4.31 and a debt-to-equity ratio of 1.15.

Carvana's stock is scheduled to split on Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly issued shares will be distributed to shareholders after the closing bell on Wednesday, May 6th.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, topping analysts' consensus estimates of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business had revenue of $5.60 billion during the quarter, compared to analysts' expectations of $5.24 billion. During the same period last year, the company posted $0.56 EPS. The business's revenue was up 58.0% on a year-over-year basis. On average, analysts expect that Carvana will post 6.97 earnings per share for the current fiscal year.

Insider Transactions at Carvana

In other news, COO Benjamin E. Huston sold 10,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $309.86, for a total value of $3,098,600.00. Following the completion of the sale, the chief operating officer owned 92,924 shares in the company, valued at approximately $28,793,430.64. This trade represents a 9.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mark W. Jenkins sold 12,750 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $310.35, for a total transaction of $3,956,962.50. Following the completion of the sale, the chief financial officer owned 197,089 shares of the company's stock, valued at $61,166,571.15. This trade represents a 6.08% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 56,170 shares of company stock worth $20,020,204. 15.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Carvana

Several institutional investors have recently made changes to their positions in CVNA. Royal Bank of Canada increased its position in Carvana by 40.8% during the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after purchasing an additional 8,654 shares during the period. Geneos Wealth Management Inc. increased its position in Carvana by 251.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock valued at $53,000 after purchasing an additional 181 shares during the period. Cerity Partners LLC increased its position in Carvana by 28.8% during the 2nd quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock valued at $1,847,000 after purchasing an additional 1,226 shares during the period. AXA S.A. increased its position in Carvana by 340.7% during the 2nd quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after purchasing an additional 3,288 shares during the period. Finally, NewEdge Advisors LLC increased its position in Carvana by 9.1% during the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after purchasing an additional 825 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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