Carvana (NYSE:CVNA) Shares Down 10.6% - Time to Sell?

Key Points

• Carvana's shares fell 10.6% on Wednesday, dropping from a previous close of $355.87 to trade between $312.98 and $318.04.
• Analysts remain optimistic, with several firms raising target prices, including JPMorgan Chase increasing theirs from $425 to $490, reflecting a consensus rating of "Moderate Buy."
• Insider selling was significant, with a notable decrease in holdings; Daniel J. Gill sold 80,000 shares at an average price of $398.91, reducing his stake by 28.79%.

Carvana Co. (NYSE:CVNA - Get Free Report)'s share price fell 10.6% on Wednesday . The stock traded as low as $312.98 and last traded at $318.04. 2,539,475 shares traded hands during mid-day trading, a decline of 33% from the average session volume of 3,799,304 shares. The stock had previously closed at $355.87.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CVNA. Wells Fargo & Company boosted their target price on Carvana from $390.00 to $425.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. JMP Securities boosted their target price on Carvana from $440.00 to $460.00 and gave the company a "market outperform" rating in a report on Thursday, July 31st. Gordon Haskett began coverage on Carvana in a report on Monday, July 14th. They issued a "hold" rating and a $329.00 target price for the company. JPMorgan Chase & Co. boosted their target price on Carvana from $425.00 to $490.00 and gave the company an "overweight" rating in a report on Tuesday. Finally, Oppenheimer raised Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price for the company in a report on Friday, July 25th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $419.94.

Carvana Price Performance

The stock has a market cap of $70.39 billion, a price-to-earnings ratio of 81.83, a PEG ratio of 1.10 and a beta of 3.55. The company has a 50-day moving average of $364.16 and a 200-day moving average of $322.35. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00.

Carvana (NYSE:CVNA - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%.The company had revenue of $4.84 billion for the quarter, compared to analysts' expectations of $4.54 billion. During the same quarter in the previous year, the firm posted ($0.05) EPS. The firm's quarterly revenue was up 41.9% on a year-over-year basis. As a group, equities research analysts predict that Carvana Co. will post 2.85 earnings per share for the current year.

Insiders Place Their Bets

In other Carvana news, insider Daniel J. Gill sold 80,000 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $398.91, for a total transaction of $31,912,800.00. Following the transaction, the insider owned 197,832 shares in the company, valued at approximately $78,917,163.12. The trade was a 28.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Ernest C. Garcia II sold 93,376 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the transaction, the insider owned 6,624 shares in the company, valued at $2,610,915.84. The trade was a 93.38% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,558,292 shares of company stock worth $567,999,107. Company insiders own 16.36% of the company's stock.

Institutional Investors Weigh In On Carvana

A number of institutional investors and hedge funds have recently bought and sold shares of CVNA. GAMMA Investing LLC lifted its stake in Carvana by 31.4% in the 1st quarter. GAMMA Investing LLC now owns 1,030 shares of the company's stock valued at $215,000 after buying an additional 246 shares in the last quarter. Janney Montgomery Scott LLC purchased a new position in shares of Carvana during the 1st quarter worth $204,000. Asset Management One Co. Ltd. lifted its stake in shares of Carvana by 6.1% during the 1st quarter. Asset Management One Co. Ltd. now owns 41,860 shares of the company's stock worth $8,752,000 after purchasing an additional 2,421 shares during the period. Global Assets Advisory LLC purchased a new position in shares of Carvana during the 1st quarter worth $704,000. Finally, Robeco Institutional Asset Management B.V. lifted its stake in shares of Carvana by 142.4% during the 1st quarter. Robeco Institutional Asset Management B.V. now owns 11,405 shares of the company's stock worth $2,385,000 after purchasing an additional 6,699 shares during the period. Hedge funds and other institutional investors own 56.71% of the company's stock.

Carvana Company Profile

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.

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