Carvana (NYSE:CVNA) Shares Down 3.6% Following Insider Selling

Key Points

• Carvana's shares dropped 3.6% after insider selling activities, with CEO Ernest C. Garcia III selling a total of 20,000 shares across multiple transactions.
• Analysts have mixed views on Carvana, with six analysts rating the stock as hold while thirteen assigned a buy rating, highlighting an average target price of $379.65.
• The company reported a quarterly revenue of $4.84 billion, exceeding estimates, and posted an EPS of $1.28, marking a significant turnaround from a loss in the same quarter last year.

Carvana Co. (NYSE:CVNA - Get Free Report) was down 3.6% during trading on Monday following insider selling activity. The company traded as low as $359.85 and last traded at $354.39. Approximately 550,215 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 4,247,689 shares. The stock had previously closed at $367.78.

Specifically, CEO Ernest C. Garcia III sold 10,000 shares of the business's stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $335.27, for a total value of $3,352,700.00. Following the completion of the sale, the chief executive officer directly owned 596,440 shares in the company, valued at $199,968,438.80. The trade was a 1.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Ernest C. Garcia III sold 7,300 shares of the business's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $389.63, for a total value of $2,844,299.00. Following the completion of the sale, the chief executive officer owned 592,790 shares of the company's stock, valued at $230,968,767.70. This trade represents a 1.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, CEO Ernest C. Garcia III sold 2,700 shares of the business's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $403.83, for a total value of $1,090,341.00. Following the completion of the sale, the chief executive officer directly owned 591,440 shares in the company, valued at $238,841,215.20. The trade was a 0.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Wedbush upgraded Carvana to a "hold" rating in a research note on Thursday, May 8th. Morgan Stanley increased their target price on Carvana from $280.00 to $290.00 and gave the stock an "overweight" rating in a report on Thursday, May 15th. Royal Bank Of Canada increased their target price on Carvana from $400.00 to $460.00 and gave the stock an "outperform" rating in a report on Thursday. Robert W. Baird increased their target price on Carvana from $200.00 to $275.00 and gave the stock a "neutral" rating in a report on Thursday, May 8th. Finally, Stephens upped their price objective on Carvana from $300.00 to $375.00 and gave the stock an "overweight" rating in a research report on Monday, July 7th. Six analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. Based on data from MarketBeat, Carvana has an average rating of "Moderate Buy" and an average target price of $379.65.

Carvana Stock Down 3.8%

The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58. The stock has a market capitalization of $75.77 billion, a P/E ratio of 88.68, a P/E/G ratio of 1.25 and a beta of 3.57. The firm has a 50-day simple moving average of $333.58 and a 200 day simple moving average of $268.06.

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

Institutional Investors Weigh In On Carvana

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD increased its stake in shares of Carvana by 13.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company's stock valued at $3,125,749,000 after buying an additional 1,823,218 shares during the period. Vanguard Group Inc. increased its stake in shares of Carvana by 9.7% in the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock valued at $2,620,785,000 after buying an additional 1,109,476 shares during the period. Durable Capital Partners LP increased its stake in shares of Carvana by 6.3% in the fourth quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company's stock valued at $440,932,000 after buying an additional 129,246 shares during the period. Whale Rock Capital Management LLC increased its stake in shares of Carvana by 29.8% in the fourth quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company's stock valued at $247,017,000 after buying an additional 278,760 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in shares of Carvana by 89.8% in the fourth quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company's stock valued at $207,086,000 after buying an additional 481,912 shares during the period. Institutional investors and hedge funds 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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