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

Key Points

• Carvana Co. has received a consensus recommendation of "Moderate Buy" from 19 brokerages, with six rating it a hold and thirteen a buy.
• The average twelve-month target price among analysts is $404.94, reflecting significant confidence in the stock's potential growth.
• Insider sales include a recent transaction by CEO Ernest C. Garcia III, who sold 7,900 shares for approximately $3.01 million, indicating a slight decrease in their ownership stake.

Carvana Co. (NYSE:CVNA - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nineteen brokerages that are presently covering the firm, Marketbeat.com reports. Six investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $404.9412.

CVNA has been the subject of several research reports. Wall Street Zen lowered Carvana from a "buy" rating to a "hold" rating in a research report on Friday. Needham & Company LLC raised their price objective on Carvana from $340.00 to $500.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Piper Sandler lifted their price objective on shares of Carvana from $340.00 to $440.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Wells Fargo & Company increased their target price on shares of Carvana from $390.00 to $425.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Finally, Gordon Haskett began coverage on shares of Carvana in a research report on Monday, July 14th. They issued a "hold" rating and a $329.00 price target on the stock.

Insider Activity

In other news, CEO Ernest C. Garcia III sold 7,900 shares of the stock in a transaction that occurred on Friday, October 3rd. The stock was sold at an average price of $380.40, for a total transaction of $3,005,160.00. Following the sale, the chief executive officer directly owned 367,490 shares in the company, valued at approximately $139,793,196. This represents a 2.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul W. Breaux sold 15,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $398.00, for a total value of $5,970,000.00. Following the completion of the sale, the insider directly owned 81,716 shares in the company, valued at approximately $32,522,968. This trade represents a 15.51% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,200,214 shares of company stock valued at $790,750,679 over the last quarter. Corporate insiders own 16.36% of the company's stock.

Institutional Investors Weigh In On Carvana

A number of hedge funds have recently added to or reduced their stakes in CVNA. J.Safra Asset Management Corp boosted its holdings in shares of Carvana by 140.8% during the first quarter. J.Safra Asset Management Corp now owns 3,390 shares of the company's stock valued at $709,000 after acquiring an additional 1,982 shares during the period. Farther Finance Advisors LLC lifted its position in Carvana by 333.1% in the 1st quarter. Farther Finance Advisors LLC now owns 3,482 shares of the company's stock valued at $740,000 after purchasing an additional 2,678 shares during the last quarter. Berkshire Capital Holdings Inc. boosted its stake in Carvana by 632,200.0% during the 1st quarter. Berkshire Capital Holdings Inc. now owns 63,230 shares of the company's stock valued at $13,220,000 after purchasing an additional 63,220 shares during the period. Praxis Investment Management Inc. grew its position in Carvana by 56.0% in the 1st quarter. Praxis Investment Management Inc. now owns 4,400 shares of the company's stock worth $920,000 after purchasing an additional 1,580 shares during the last quarter. Finally, Hexagon Capital Partners LLC increased its stake in shares of Carvana by 1,791.2% in the first quarter. Hexagon Capital Partners LLC now owns 2,591 shares of the company's stock valued at $542,000 after purchasing an additional 2,454 shares during the period. 56.71% of the stock is currently owned by institutional investors.

Carvana Price Performance

CVNA opened at $369.90 on Tuesday. The company has a market capitalization of $79.60 billion, a P/E ratio of 92.71, a PEG ratio of 1.23 and a beta of 3.55. The company has a 50-day moving average of $365.31 and a 200-day moving average of $312.06. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. Carvana has a 1-year low of $148.25 and a 1-year high of $413.33.

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

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.

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