Carvana (NYSE:CVNA) Given New $475.00 Price Target at Jefferies Financial Group

Key Points

• Jefferies lowered its price target to $475 (from $485) while maintaining a buy rating, implying roughly a 24.4% upside from the prior close.
• Overall analyst sentiment is a Moderate Buy with a consensus price target of $435.14; several brokers have trimmed targets but the majority still rate the stock as Buy (17 Buy, 7 Hold, 1 Strong Buy).
• Carvana will implement a 5-for-1 split on May 7 and recently reported a strong quarter, beating estimates with EPS $4.22 versus $1.10 and revenue up 58% year-over-year.

Carvana (NYSE:CVNA - Get Free Report) had its price objective reduced by stock analysts at Jefferies Financial Group from $485.00 to $475.00 in a report released on Tuesday,MarketScreener reports. The brokerage currently has a "buy" rating on the stock. Jefferies Financial Group's price objective would indicate a potential upside of 24.43% from the stock's previous close.

A number of other brokerages have also issued reports on CVNA. Gordon Haskett decreased their target price on shares of Carvana from $350.00 to $335.00 and set a "hold" rating on the stock in a research report on Monday, April 6th. Bank of America reaffirmed a "neutral" rating and issued a $360.00 target price (down from $400.00) on shares of Carvana in a research report on Monday, April 6th. BTIG Research dropped their target price on shares of Carvana from $535.00 to $455.00 and set a "buy" rating for the company in a research report on Thursday, February 19th. Evercore reduced their price target on shares of Carvana from $430.00 to $390.00 in a research report on Thursday, February 19th. Finally, Argus raised shares of Carvana to a "strong-buy" rating in a research report on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $435.14.

Carvana Trading Up 2.0%

Shares of Carvana stock opened at $381.76 on Tuesday. The company has a quick ratio of 2.73, a current ratio of 4.31 and a debt-to-equity ratio of 1.15. The firm has a market cap of $83.55 billion, a price-to-earnings ratio of 46.63 and a beta of 3.61. Carvana has a 52-week low of $194.02 and a 52-week high of $486.89. The company's 50-day simple moving average is $330.26 and its 200-day simple moving average is $369.93.

Shares of Carvana are set to split on Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly issued shares will be payable to shareholders after the closing bell on Wednesday, May 6th.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $5.24 billion. During the same quarter last year, the firm posted $0.56 EPS. The business's revenue was up 58.0% compared to the same quarter last year. As a group, equities research analysts anticipate that Carvana will post 2.85 earnings per share for the current year.

Insider Transactions at Carvana

In other news, Director J Danforth Quayle sold 2,900 shares of Carvana stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $309.97, for a total value of $898,913.00. Following the completion of the transaction, the director directly owned 41,913 shares of the company's stock, valued at approximately $12,991,772.61. The trade was a 6.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO Benjamin E. Huston sold 10,000 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $309.86, for a total transaction of $3,098,600.00. Following the sale, the chief operating officer directly owned 92,924 shares of the company's stock, valued at approximately $28,793,430.64. This represents a 9.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 56,170 shares of company stock valued at $20,020,204 over the last 90 days. Corporate insiders own 15.19% of the company's stock.

Hedge Funds Weigh In On Carvana

Several institutional investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD increased its position in Carvana by 8.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company's stock worth $7,481,081,000 after buying an additional 1,407,762 shares during the period. Vanguard Group Inc. lifted its position in Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock valued at $7,082,804,000 after purchasing an additional 3,328,115 shares during the last quarter. State Street Corp lifted its position in Carvana by 93.7% in the 4th quarter. State Street Corp now owns 5,714,779 shares of the company's stock valued at $2,411,751,000 after purchasing an additional 2,764,759 shares during the last quarter. Capital Research Global Investors boosted its stake in Carvana by 42.9% during the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock valued at $2,405,959,000 after purchasing an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC grew its position in Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock worth $1,632,763,000 after purchasing an additional 1,382,852 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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