Carvana (NYSE:CVNA) Given Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada restated its outperform rating on Carvana and maintained a $92 price target, implying about 36.9% upside from the prior close.
• Carvana shares were up 1.5% to $67.20, while the stock’s broader analyst outlook remains positive with a Moderate Buy consensus and an average target price of $93.14.
• The company recently posted a strong quarterly earnings beat, reporting $1.69 EPS versus the expected $0.32 and revenue of $6.43 billion, ahead of estimates.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "outperform" rating restated by equities researchers at Royal Bank Of Canada in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $92.00 price objective on the stock. Royal Bank Of Canada's price target indicates a potential upside of 36.91% from the company's previous close.

Other analysts have also recently issued research reports about the company. Needham & Company LLC restated a "buy" rating on shares of Carvana in a report on Friday. Wedbush cut their price objective on shares of Carvana from $100.00 to $85.00 and set an "outperform" rating on the stock in a report on Thursday, February 19th. BTIG Research reissued a "buy" rating and issued a $97.00 target price on shares of Carvana in a research report on Friday. Bank of America upped their price target on shares of Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 21st. Finally, Stephens increased their price target on shares of Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Carvana has an average rating of "Moderate Buy" and a consensus target price of $93.14.

Carvana Trading Up 1.5%

Shares of Carvana stock traded up $1.01 during trading hours on Friday, reaching $67.20. 1,409,643 shares of the company's stock were exchanged, compared to its average volume of 16,312,721. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The company has a fifty day moving average of $70.37 and a 200-day moving average of $75.07. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The firm has a market capitalization of $73.70 billion, a price-to-earnings ratio of 40.78, a price-to-earnings-growth ratio of 10.74 and a beta of 3.45.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $1.37. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The business had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.12 billion. Sell-side analysts forecast that Carvana will post 1.58 EPS for the current fiscal year.

Insider Activity

In other news, Director J Danforth Quayle sold 14,500 shares of the stock in a transaction on Monday, March 9th. The shares were sold at an average price of $61.99, for a total value of $898,913.00. Following the completion of the sale, the director owned 209,565 shares of the company's stock, valued at $12,991,772.61. This represents a 6.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of Carvana stock in a transaction on Monday, June 1st. The shares were sold at an average price of $70.39, for a total transaction of $3,519,500.00. Following the transaction, the chief operating officer owned 515,769 shares in the company, valued at $36,304,979.91. The trade was a 8.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 399,955 shares of company stock valued at $27,855,495 over the last quarter. 15.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its holdings in shares of Carvana by 8.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company's stock valued at $7,481,081,000 after buying an additional 1,407,762 shares during the period. Vanguard Group Inc. raised its stake in shares of Carvana by 24.7% during the fourth 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 period. State Street Corp raised its stake in shares of Carvana by 93.7% during the fourth 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 period. Capital Research Global Investors lifted its position in shares of Carvana by 42.9% during the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock worth $2,405,959,000 after purchasing an additional 1,711,144 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Carvana by 55.4% in the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock valued at $1,632,763,000 after purchasing an additional 1,382,852 shares during the period. Institutional investors and hedge funds own 56.71% of the company's stock.

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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