Carvana (NYSE:CVNA) Price Target Cut to $87.00 by Analysts at BTIG Research

Key Points

• BTIG Research lowered Carvana’s price target from $97 to $87 while maintaining a “buy” rating, implying 31.26% upside from the previous close. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $91.65.
• Carvana reported quarterly results above expectations, with revenue of $7.38 billion—up 52.4% year over year—and EPS of $0.42 versus the $0.38 consensus estimate.
• Despite strong results, investors remain concerned about cautious forward guidance and the company’s elevated valuation. Carvana insiders also sold approximately $28.5 million of shares during the latest quarter.

Carvana (NYSE:CVNA - Get Free Report) had its target price reduced by stock analysts at BTIG Research from $97.00 to $87.00 in a report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's price target points to a potential upside of 31.26% from the company's previous close.

A number of other equities research analysts have also recently weighed in on the stock. Evercore lifted their price target on shares of Carvana from $78.00 to $80.00 in a research report on Tuesday, April 28th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $92.00 price objective on shares of Carvana in a report on Friday, June 12th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Carvana in a research report on Thursday, June 18th. Citizens Jmp lifted their price objective on shares of Carvana from $92.00 to $103.00 and gave the company a "market outperform" rating in a report on Friday, May 1st. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $85.00 price target (down from $95.00) on shares of Carvana in a research note on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Carvana currently has a consensus rating of "Moderate Buy" and an average target price of $91.65.

Carvana Stock Performance

NYSE:CVNA opened at $66.28 on Thursday. The company's 50-day moving average is $67.03 and its two-hundred day moving average is $71.05. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The firm has a market capitalization of $72.70 billion, a price-to-earnings ratio of 40.32, a PEG ratio of 14.83 and a beta of 3.46.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating analysts' consensus estimates of $0.38 by $0.04. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The firm had revenue of $7.38 billion for the quarter, compared to analysts' expectations of $6.90 billion. During the same period in the prior year, the firm posted $1.51 earnings per share. The firm's quarterly revenue was up 52.4% on a year-over-year basis. Analysts forecast that Carvana will post 1.63 EPS for the current year.

Insider Activity at Carvana

In other news, COO Benjamin E. Huston sold 50,000 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $68.55, for a total transaction of $3,427,500.00. Following the completion of the sale, the chief operating officer owned 458,755 shares in the company, valued at approximately $31,447,655.25. The trade was a 9.83% decrease in their position. The sale was disclosed in a filing 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 company's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $68.34, for a total transaction of $4,356,675.00. Following the completion of the transaction, the chief financial officer owned 1,029,580 shares of the company's stock, valued at approximately $70,361,497.20. The trade was a 5.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,962 shares of company stock valued at $28,525,088 in the last quarter. Company insiders own 15.19% of the company's stock.

Institutional Trading of Carvana

A number of hedge funds and other institutional investors have recently made changes to their positions in CVNA. Ascentis Independent Advisors purchased a new position in Carvana during the 1st quarter worth approximately $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Carvana in the fourth quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. purchased a new position in shares of Carvana during the fourth quarter worth approximately $29,000. Annis Gardner Whiting Capital Advisors LLC grew its position in shares of Carvana by 152.6% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock worth $30,000 after acquiring an additional 58 shares during the last quarter. Finally, Motiv8 Investments LLC acquired a new position in shares of Carvana in the 4th quarter valued at $33,000. Institutional investors and hedge funds own 56.71% of the company's stock.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record Q2 revenue of approximately $7.38 billion, up 52.4% year over year, while retail vehicle sales increased about 40%. Net income reached $513 million and adjusted EBITDA rose to a record $769 million, marking the company’s 10th consecutive quarter of growth and profitability. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Reported adjusted earnings of $0.42 per share exceeded the $0.38 consensus estimate, and revenue surpassed analysts’ expectations of roughly $6.90 billion. Management also forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in the second half. Carvana posts record quarterly profits
• Neutral Sentiment: Carvana expanded same-day delivery service to the Fort Myers area, potentially improving customer convenience and supporting local sales, although the initiative is unlikely to materially affect near-term valuation. Carvana Expands Same-Day Delivery to Fort Myers
• Negative Sentiment: The earnings beat was overshadowed by guidance that missed investor expectations. Analysts viewed the forecast as signaling slower momentum or more cautious profitability assumptions, prompting concern that Carvana’s elevated valuation already prices in much of its recent growth. Carvana's record quarter overshadowed by soft FY26 outlook

Carvana Company Profile

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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