Carvana Co. (NYSE:CVNA) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Carvana Co. has received a consensus rating of "Moderate Buy" from 18 brokerages, with 12 analysts issuing buy ratings and 6 holding the stock.
• The average twelve-month price objective for Carvana is approximately $383.47, with several firms recently raising their target prices significantly.
• Insider trading activity indicates that senior executives sold thousands of shares, resulting in noticeable decreases in their ownership stakes, amidst reports of Carvana's recent performance improvements.

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) have been given a consensus rating of "Moderate Buy" by the eighteen brokerages that are currently covering the stock, MarketBeat Ratings reports. Six investment analysts have rated the stock with a hold rating and twelve have issued a buy rating on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $383.4706.

Several brokerages have recently weighed in on CVNA. Piper Sandler increased their target price on shares of Carvana from $340.00 to $440.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Wells Fargo & Company increased their price objective on Carvana from $390.00 to $425.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Gordon Haskett began coverage on Carvana in a research note on Monday, July 14th. They issued a "hold" rating and a $329.00 target price on the stock. Bank of America upped their price target on Carvana from $375.00 to $425.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Finally, Royal Bank Of Canada increased their price target on Carvana from $400.00 to $460.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st.

Insider Buying and Selling

In other news, CFO Mark W. Jenkins sold 12,750 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $364.42, for a total transaction of $4,646,355.00. Following the transaction, the chief financial officer directly owned 208,581 shares in the company, valued at $76,011,088.02. The trade was a 5.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Benjamin E. Huston sold 10,000 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $364.66, for a total transaction of $3,646,600.00. Following the transaction, the chief operating officer directly owned 104,416 shares of the company's stock, valued at $38,076,338.56. This represents a 8.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,423,157 shares of company stock worth $856,602,667. 17.12% of the stock is currently owned by insiders.

Institutional Trading of Carvana

Several hedge funds have recently modified their holdings of CVNA. Hilltop National Bank acquired a new position in Carvana during the second quarter worth $25,000. Brooklyn Investment Group lifted 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 period. N.E.W. Advisory Services LLC acquired a new position in shares of Carvana during the 1st quarter worth $33,000. SJS Investment Consulting Inc. grew its stake in shares of Carvana by 960.0% during the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock worth $36,000 after purchasing an additional 96 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in shares of Carvana in the 2nd quarter valued at about $38,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Performance

Shares of CVNA opened at $354.89 on Friday. The company's 50 day simple moving average is $353.80 and its 200-day simple moving average is $289.02. The firm has a market cap of $76.37 billion, a PE ratio of 88.95, a price-to-earnings-growth ratio of 1.21 and a beta of 3.51. Carvana has a 12-month low of $133.57 and a 12-month high of $413.33. The company has a current ratio of 4.00, a quick ratio of 2.58 and a debt-to-equity ratio of 2.51.

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

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.

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