Carvana (NYSE:CVNA) Price Target Raised to $510.00 at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on Carvana to $510 (an implied ~27.95% upside) and several other brokers also lifted targets—Needham to $600—leaving a consensus rating of "Moderate Buy" with an average target of $460.73.
• Q1 earnings beat: Carvana reported EPS $1.69 vs. $1.52 consensus and revenue $6.43B vs. $6.01B, with record retail unit sales (~187,393) and an estimated profit of about $405M.
• The stock traded around $398.605-for-1 stock split to be distributed after the close on May 6 (effective May 7).

Carvana (NYSE:CVNA - Get Free Report) had its target price increased by research analysts at Morgan Stanley from $450.00 to $510.00 in a report issued on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 27.95% from the stock's previous close.

Several other brokerages also recently commented on CVNA. Jefferies Financial Group dropped their target price on shares of Carvana from $485.00 to $475.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. BTIG Research raised their target price on shares of Carvana from $455.00 to $485.00 and gave the stock a "buy" rating in a report on Thursday. Wedbush dropped their target price on shares of Carvana from $500.00 to $425.00 and set an "outperform" rating on the stock in a report on Thursday, February 19th. Needham & Company LLC raised their target price on shares of Carvana from $500.00 to $600.00 and gave the stock a "buy" rating in a report on Thursday. Finally, William Blair reissued an "outperform" rating on shares of Carvana in a research note on Friday, March 13th. One investment 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's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $460.73.

Carvana Trading Up 0.5%

Carvana stock traded up $2.01 during mid-day trading on Thursday, hitting $398.60. 4,097,503 shares of the company's stock were exchanged, compared to its average volume of 3,594,970. The firm has a market capitalization of $87.23 billion, a P/E ratio of 49.75 and a beta of 3.61. Carvana has a fifty-two week low of $245.00 and a fifty-two week high of $486.89. 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 company's 50 day simple moving average is $335.67 and its 200-day simple moving average is $371.79.

Carvana's stock is scheduled to split on Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly issued shares will be distributed to shareholders after the closing bell on Wednesday, May 6th.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, topping the consensus estimate of $1.52 by $0.17. The business had revenue of $6.43 billion for the quarter, compared to the consensus estimate of $6.01 billion. Carvana had a return on equity of 50.96% and a net margin of 6.92%. On average, equities analysts anticipate that Carvana will post 6.97 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Benjamin E. Huston sold 10,000 shares of Carvana stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $309.86, for a total value of $3,098,600.00. Following the sale, the chief operating officer directly owned 92,924 shares in the company, valued at $28,793,430.64. This trade represents a 9.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Stephen R. Palmer sold 1,000 shares of Carvana stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $317.50, for a total transaction of $317,500.00. Following the completion of the sale, the vice president owned 33,891 shares in the company, valued at $10,760,392.50. This trade represents a 2.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 56,170 shares of company stock valued at $20,020,204 over the last ninety days. Insiders own 15.19% of the company's stock.

Institutional Trading of Carvana

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Resona Asset Management Co. Ltd. increased its position in shares of Carvana by 4.1% in the first quarter. Resona Asset Management Co. Ltd. now owns 40,772 shares of the company's stock valued at $12,634,000 after acquiring an additional 1,603 shares during the last quarter. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in shares of Carvana in the first quarter valued at about $326,000. Taylor Frigon Capital Management LLC increased its position in shares of Carvana by 11.8% in the first quarter. Taylor Frigon Capital Management LLC now owns 8,761 shares of the company's stock valued at $2,754,000 after acquiring an additional 923 shares during the last quarter. Cvfg LLC acquired a new stake in shares of Carvana in the first quarter valued at about $2,769,000. Finally, Ascentis Independent Advisors acquired a new stake in shares of Carvana in the first quarter valued at about $26,000. Institutional investors and hedge funds own 56.71% of the company's stock.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q1 beat on revenue and EPS — Carvana reported EPS $1.69 vs. consensus ~$1.52 and revenue ~$6.43B vs. ~$6.01B; the quarter included record retail unit sales (~187,393, +40% YoY) and a reported profit of ~$405M, showing strong demand and operating leverage. Carvana Q1 Earnings Beat on Record Retail Unit Growth
• Positive Sentiment: Broad analyst upgrades — at least seven firms raised price targets after the print, clustering between ~$465 and $600, reflecting renewed bullishness on the used‑car cycle and Carvana’s growth runway. Wall Street Showers Carvana With Price Target Hikes
• Positive Sentiment: Notable single‑house upgrades — Needham raised its target to $600 (buy) and Wells Fargo lifted its target to $475 (overweight); BTIG also bumped its target, signaling conviction from multiple sell‑side desks. Analyst Target Raises
• Neutral Sentiment: Management disclosure & transcript available — investors can review the earnings slide deck and call transcript for forward guidance, capex and unit‑capacity details to validate the growth story. Press Release & Slide Deck
• Neutral Sentiment: Scale and expansion thesis — analysts note Carvana’s reconditioning and capex plans could support much higher annual throughput (1.5M–3M units long term), which underpins bullish mid‑ to long‑term models but is execution‑dependent. Carvana: In A Class Of Its Own
• Negative Sentiment: Per‑unit margin pressure — while top‑line and unit growth were strong, management flagged a dip in per‑unit gross margins and higher operating costs, which could cap near‑term profitability improvements and weigh on the stock if trends persist. Earnings Call Highlights
• Negative Sentiment: Premium valuation — some coverage points to a rich multiple (high P/E and elevated EV/EBITDA relative to peers), so upside now depends on continued margin expansion and sustained unit growth. Valuation Discussion

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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