Carvana (NYSE:CVNA) Receives "Buy" Rating from Needham & Company LLC

Key Points

• Needham & Company reiterated its “Buy” rating on Carvana and maintained a $120 price target, implying roughly 81% upside from the $66.28 share price. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $91.65.
• Carvana reported strong quarterly results, with revenue rising 52.4% year over year to $7.38 billion and adjusted EPS of $0.42 topping the $0.38 consensus estimate. However, its forward outlook reportedly fell short of investor expectations, raising concerns that growth may be slowing while the stock remains highly valued.
• Insiders sold nearly 397,000 shares worth $28.5 million over the past three months, while institutional investors and hedge funds own 56.71% of the company.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a research note issued on Thursday,Benzinga reports. They presently have a $120.00 price target on the stock. Needham & Company LLC's price target indicates a potential upside of 81.05% from the company's current price.

CVNA has been the subject of a number of other reports. Stephens lifted their price objective on Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Evercore upped their target price on shares of Carvana from $78.00 to $80.00 in a research report on Tuesday, April 28th. Morgan Stanley set a $90.00 target price on shares of Carvana in a research note on Thursday. BNP Paribas Exane lifted their price target on shares of Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $107.40 price target on shares of Carvana in a research note on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $91.65.

Carvana Stock Up 0.3%

Shares of CVNA opened at $66.28 on Thursday. 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. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The business's fifty day moving average price is $67.03 and its two-hundred day moving average price is $71.05. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, topping 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 company had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the previous year, the company posted $1.51 earnings per share. The firm's quarterly revenue was up 52.4% on a year-over-year basis. On average, analysts predict that Carvana will post 1.63 earnings per share for the current year.

Insider Activity at Carvana

In other news, Director J Danforth Quayle sold 14,525 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director directly owned 214,960 shares of the company's stock, valued at $15,047,200. This represents a 6.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $67.15, for a total transaction of $375,838.55. Following the completion of the sale, the insider owned 315,075 shares in the company, valued at $21,157,286.25. This represents a 1.75% decrease in their ownership of the stock. 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. In the last three months, insiders sold 396,962 shares of company stock worth $28,525,088. 15.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On Carvana

Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada increased its position in shares of Carvana by 40.8% in the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after buying an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in Carvana by 251.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock worth $53,000 after buying an additional 181 shares during the period. Cerity Partners LLC lifted its holdings in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock worth $1,847,000 after acquiring an additional 1,226 shares in the last quarter. AXA S.A. lifted its holdings in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock worth $1,433,000 after acquiring an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in Carvana by 9.1% in the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after acquiring an additional 825 shares during the period. 56.71% of the stock is currently owned by institutional investors and hedge funds.

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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