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

Key Points

• Carvana has an average analyst rating of “Moderate Buy” from 24 covering analysts, with 17 buy ratings and an average 1-year target price of about $93.14.
• The company recently posted a strong quarterly earnings beat, reporting EPS of $1.69 versus expectations of $0.32 and revenue of $6.43 billion versus $6.12 billion expected.
• Despite the positive results, the stock was down 4% and insider selling has been notable, with executives and directors selling shares and 281,205 shares sold over the last 90 days.

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-four analysts that are presently covering the stock, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $93.1391.

Several equities analysts have commented on CVNA shares. Needham & Company LLC raised their target price on shares of Carvana from $100.00 to $120.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Gordon Haskett raised their target price on shares of Carvana from $67.00 to $85.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Weiss Ratings cut shares of Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 24th. Robert W. Baird set a $88.00 target price on shares of Carvana in a research note on Friday. Finally, DA Davidson raised their target price on shares of Carvana from $64.00 to $67.00 and gave the company a "neutral" rating in a research note on Friday, May 1st.

Carvana Stock Down 4.0%

CVNA stock opened at $63.38 on Wednesday. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The firm's 50-day simple moving average is $75.26 and its 200 day simple moving average is $76.96. The stock has a market cap of $69.52 billion, a PE ratio of 38.55, a price-to-earnings-growth ratio of 11.21 and a beta of 3.55.

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 analysts' consensus estimates of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The business had revenue of $6.43 billion for the quarter, compared to analysts' expectations of $6.12 billion. As a group, sell-side analysts predict that Carvana will post 1.57 EPS for the current year.

Insider Activity

In other Carvana news, Director J Danforth Quayle sold 14,500 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $61.99, for a total transaction of $898,913.00. Following the transaction, the director owned 209,565 shares of the company's stock, valued at approximately $12,991,772.61. This trade represents a 6.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $61.97, for a total transaction of $3,098,600.00. Following the transaction, the chief operating officer directly owned 464,620 shares in the company, valued at approximately $28,793,430.64. The trade was a 9.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 281,205 shares of company stock worth $19,495,895 in the last 90 days. 15.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Carvana

Several hedge funds have recently made changes to their positions in the business. First Horizon Corp grew its stake in shares of Carvana by 6.4% in the 4th quarter. First Horizon Corp now owns 418 shares of the company's stock worth $176,000 after purchasing an additional 25 shares during the last quarter. Finivi Inc. grew its stake in shares of Carvana by 4.6% in the 4th quarter. Finivi Inc. now owns 698 shares of the company's stock worth $295,000 after purchasing an additional 31 shares during the last quarter. HB Wealth Management LLC grew its stake in shares of Carvana by 1.0% in the 4th quarter. HB Wealth Management LLC now owns 3,190 shares of the company's stock worth $1,346,000 after purchasing an additional 31 shares during the last quarter. Gilder Gagnon Howe & Co. LLC grew its stake in shares of Carvana by 1.7% in the 2nd quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company's stock worth $622,000 after purchasing an additional 31 shares during the last quarter. Finally, Insigneo Advisory Services LLC grew its stake in shares of Carvana by 4.8% in the 4th quarter. Insigneo Advisory Services LLC now owns 696 shares of the company's stock worth $294,000 after purchasing an additional 32 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Carvana Company Profile

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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