Carvana (NYSE:CVNA) Price Target Cut to $100.00 by Analysts at Argus

Key Points

• Argus cut Carvana’s price target sharply from $500 to $100, though that still implies about 28.9% upside from the stock’s current price.
• Other analysts remain mostly positive on the stock, with the consensus rating at Moderate Buy and an average price target of $109.75.
• Carvana recently posted strong quarterly results, beating estimates on EPS and revenue, even as shares were down slightly and insiders have continued to sell stock.

Carvana (NYSE:CVNA - Get Free Report) had its target price lowered by analysts at Argus from $500.00 to $100.00 in a note issued to investors on Monday,MarketScreener reports. Argus' price target suggests a potential upside of 28.93% from the stock's current price.

A number of other research analysts also recently weighed in on the stock. Gordon Haskett raised their target price on shares of Carvana from $67.00 to $85.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. BTIG Research reiterated a "buy" rating and set a $97.00 target price (down from $485.00) on shares of Carvana in a report on Sunday. Wells Fargo & Company raised their price target on Carvana from $85.00 to $95.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. JPMorgan Chase & Co. upped their price objective on Carvana from $91.00 to $93.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Finally, William Blair reaffirmed an "outperform" rating on shares of Carvana in a research report on Friday, March 13th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $109.75.

Carvana Stock Down 0.5%

Carvana stock opened at $77.56 on Monday. 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 stock has a market cap of $85.07 billion, a price-to-earnings ratio of 47.18, a PEG ratio of 28.00 and a beta of 3.55. The company's 50-day moving average price is $74.51 and its two-hundred day moving average price is $76.92. Carvana has a 52 week low of $53.44 and a 52 week high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating the consensus estimate of $0.32 by $1.37. The company had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. On average, analysts expect that Carvana will post 1.52 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, VP Stephen R. Palmer sold 5,000 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $79.06, for a total value of $395,320.00. Following the transaction, the vice president owned 164,455 shares of the company's stock, valued at approximately $13,002,470.12. This represents a 2.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $77.44, for a total value of $4,936,672.50. Following the transaction, the chief financial officer owned 1,050,635 shares in the company, valued at approximately $81,359,073.13. This trade represents a 5.72% 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 have sold 275,615 shares of company stock worth $19,048,863 in the last 90 days. Corporate insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Carvana in the fourth quarter valued at about $29,000. Farmers & Merchants Investments Inc. bought a new position in Carvana during the fourth quarter worth about $29,000. Motiv8 Investments LLC acquired a new stake in Carvana in the 4th quarter worth about $33,000. Ascentis Independent Advisors bought a new stake in Carvana in the 1st quarter valued at about $26,000. Finally, Salomon & Ludwin LLC boosted its holdings in Carvana by 112.5% in the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock valued at $37,000 after purchasing an additional 45 shares during the period. 56.71% of the stock is owned by institutional investors and hedge funds.

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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