Carvana (NYSE:CVNA) Given New $400.00 Price Target at Evercore

Key Points

• Evercore raised Carvana's price target from $390 to $400; the stock's consensus remains a "Moderate Buy" with an average analyst target of $437.86 based on multiple Buy and Hold ratings.
• Carvana posted a strong quarter, delivering $4.22 EPS versus a $1.10 estimate and $5.60B in revenue (up 58% year-over-year), with a 6.92% net margin and 50.96% return on equity.
• Market and corporate moves: CVNA opened near $399.87 with a ~$87.5B market cap and a 5-for-1 stock split effective May 7, while insiders sold roughly 56,170 shares (~$20M) over the past three months.

Carvana (NYSE:CVNA - Get Free Report) had its price objective raised by analysts at Evercore from $390.00 to $400.00 in a research report issued on Tuesday,MarketScreener reports. Evercore's price objective suggests a potential upside of 0.03% from the stock's current price.

Other research analysts have also recently issued research reports about the company. Gordon Haskett lowered their price objective on Carvana from $350.00 to $335.00 and set a "hold" rating on the stock in a research report on Monday, April 6th. Needham & Company LLC reiterated a "buy" rating and issued a $500.00 price target on shares of Carvana in a research note on Monday, March 16th. Royal Bank Of Canada cut their target price on Carvana from $500.00 to $440.00 and set an "outperform" rating on the stock in a report on Thursday, February 19th. Morgan Stanley restated an "overweight" rating on shares of Carvana in a research report on Thursday, January 8th. Finally, Bank of America lifted their target price on Carvana from $360.00 to $410.00 and gave the stock a "neutral" rating in a report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Carvana presently has an average rating of "Moderate Buy" and a consensus target price of $437.86.

Carvana Trading Down 1.7%

NYSE:CVNA opened at $399.87 on Tuesday. The company has a market cap of $87.51 billion, a P/E ratio of 49.14 and a beta of 3.61. Carvana has a twelve month low of $229.40 and a twelve month high of $486.89. The business has a 50 day moving average price of $333.85 and a two-hundred day moving average price of $371.07. 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 set 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 announced its earnings results on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, topping the consensus estimate of $1.10 by $3.12. The business had revenue of $5.60 billion during the quarter, compared to analysts' expectations of $5.24 billion. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The firm's revenue was up 58.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.56 earnings per share. As a group, analysts expect that Carvana will post 6.97 EPS for the current fiscal year.

Insider Activity

In other Carvana news, COO Benjamin E. Huston sold 10,000 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $411.27, for a total transaction of $4,112,700.00. Following the transaction, the chief operating officer directly owned 98,652 shares in the company, valued at $40,572,608.04. This trade represents a 9.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Stephen R. Palmer sold 1,000 shares of the company's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $393.04, for a total transaction of $393,040.00. Following the sale, the vice president owned 37,192 shares of the company's stock, valued at approximately $14,617,943.68. The trade was a 2.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 56,170 shares of company stock worth $20,020,204. 15.19% of the stock is currently owned by insiders.

Institutional Trading of Carvana

Hedge funds have recently made changes to their positions in the stock. Thurston Springer Miller Herd & Titak Inc. bought a new position in Carvana during the 4th quarter valued at about $29,000. Farmers & Merchants Investments Inc. bought a new position in shares of Carvana during the fourth quarter worth $29,000. ORG Partners LLC grew its holdings in Carvana by 8,700.0% during the 3rd quarter. ORG Partners LLC now owns 88 shares of the company's stock valued at $33,000 after buying an additional 87 shares in the last quarter. Motiv8 Investments LLC purchased a new position in shares of Carvana in the fourth quarter valued at $33,000. Finally, Salomon & Ludwin LLC increased its position in Carvana by 112.5% during the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock valued at $37,000 after acquiring an additional 45 shares during the last quarter. 56.71% of the stock is owned by institutional investors.

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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