Carvana (NYSE:CVNA) Price Target Cut to $90.00 by Analysts at Jefferies Financial Group

Key Points

• Jefferies Financial Group cut its price target on Carvana from $95 to $90, while keeping a buy rating on the stock. The new target still implies about 38% upside from the previous close.
• Analyst sentiment remains broadly positive, with Carvana holding an average Moderate Buy rating and a consensus price target of $92.92. Several other firms recently adjusted targets, including upgrades and cuts.
• Carvana recently posted strong quarterly results, beating EPS and revenue estimates, while insider sales and heavy institutional ownership were also highlighted. The stock opened at $65.07 and has traded between $54.46 and $97.38 over the past year.

Carvana (NYSE:CVNA - Get Free Report) had its price target dropped by research analysts at Jefferies Financial Group from $95.00 to $90.00 in a report released on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Jefferies Financial Group's target price indicates a potential upside of 38.32% from the stock's previous close.

A number of other equities research analysts have also issued reports on the company. Evercore upped their price target on Carvana from $78.00 to $80.00 in a research report on Tuesday, April 28th. Argus dropped their price objective on shares of Carvana from $500.00 to $100.00 in a report on Monday, May 11th. JPMorgan Chase & Co. upped their price objective on shares of Carvana from $91.00 to $93.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Morgan Stanley raised their price objective on shares of Carvana from $90.00 to $102.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $92.00 target price on shares of Carvana in a report on Friday, June 12th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Carvana has an average rating of "Moderate Buy" and an average price target of $92.92.

Carvana Price Performance

Shares of NYSE CVNA opened at $65.07 on Tuesday. The firm has a market cap of $71.37 billion, a PE ratio of 39.58, a PEG ratio of 11.11 and a beta of 3.46. The firm has a fifty day moving average of $68.49 and a 200 day moving average of $72.80. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. Carvana has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) 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%. As a group, research analysts predict that Carvana will post 1.58 EPS for the current fiscal year.

Insider Activity at Carvana

In other Carvana news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $68.53, for a total value of $342,650.00. Following the sale, the vice president owned 144,934 shares of the company's stock, valued at $9,932,327.02. This trade represents a 3.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the transaction, the director directly owned 186,470 shares of the company's stock, valued at $12,648,260.10. This trade represents a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 396,962 shares of company stock worth $28,525,088 over the last quarter. 15.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Annex Advisory Services LLC raised its stake in Carvana by 405.8% during the 2nd quarter. Annex Advisory Services LLC now owns 10,643 shares of the company's stock worth $701,000 after acquiring an additional 8,539 shares in the last quarter. Tema ETFs LLC boosted its stake in Carvana by 451.0% in the second quarter. Tema ETFs LLC now owns 13,919 shares of the company's stock valued at $916,000 after acquiring an additional 11,393 shares in the last quarter. E. Ohman J or Asset Management AB boosted its stake in Carvana by 400.0% in the second quarter. E. Ohman J or Asset Management AB now owns 21,000 shares of the company's stock valued at $1,382,000 after acquiring an additional 16,800 shares in the last quarter. Handelsbanken Fonder AB grew its holdings in shares of Carvana by 277.0% during the second quarter. Handelsbanken Fonder AB now owns 345,837 shares of the company's stock worth $22,763,000 after purchasing an additional 254,114 shares during the last quarter. Finally, Fulton Bank N.A. grew its holdings in shares of Carvana by 420.4% during the second quarter. Fulton Bank N.A. now owns 4,397 shares of the company's stock worth $289,000 after purchasing an additional 3,552 shares during the last quarter. 56.71% of the stock is owned by hedge funds and other 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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