Carvana (NYSE:CVNA) Shares Gap Down Following Analyst Downgrade

Key Points

• Carvana shares fell sharply, opening at $58.95 versus a prior close of $66.32, after BTIG Research cut its price target from $97 to $87 while maintaining a “buy” rating.
• Despite the downgrade, analyst sentiment remains broadly positive: Carvana has a consensus “Moderate Buy” rating and an average price target of $90.69, well above its recent trading level.
• Carvana reported record second-quarter revenue of approximately $7.38 billion, up 52.4% year over year, and EPS of $0.42 exceeded estimates; however, concerns about its full-year outlook and slowing earnings growth contributed to the selloff.

Carvana Co. (NYSE:CVNA - Get Free Report) gapped down prior to trading on Thursday after BTIG Research lowered their price target on the stock from $97.00 to $87.00. The stock had previously closed at $66.32, but opened at $58.95. BTIG Research currently has a buy rating on the stock. Carvana shares last traded at $59.7170, with a volume of 7,622,714 shares trading hands.

Several other equities research analysts have also weighed in on CVNA. Evercore upped their price objective on Carvana from $78.00 to $80.00 in a research note on Tuesday, April 28th. Stephens raised their target price on Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Needham & Company LLC reaffirmed a "buy" rating and issued a $120.00 price target on shares of Carvana in a research note on Friday, June 5th. BNP Paribas Exane upped their price target on Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. Finally, Argus dropped their price objective on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Carvana currently has a consensus rating of "Moderate Buy" and an average price target of $90.69.

Insider Buying and Selling at Carvana

In other Carvana news, Director Ira J. Platt sold 15,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the sale, the director owned 186,470 shares of the company's stock, valued at $12,648,260.10. This represents a 7.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director J Danforth Quayle sold 14,525 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the sale, the director owned 214,960 shares of the company's stock, valued at $15,047,200. The trade was a 6.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,962 shares of company stock worth $28,525,088 over the last quarter. Corporate insiders own 15.19% of the company's stock.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record Q2 2026 revenue of approximately $7.38 billion, up 52.4% year over year, while EPS of $0.42 exceeded the $0.38 consensus estimate. Net income reached $513 million and adjusted EBITDA rose to a record $769 million, extending the company’s growth and profitability streak to 10 consecutive quarters. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Management forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in earnings during the second half of the year. The guidance signals continued strong profitability and operating momentum. Carvana posts record quarterly profits
• Positive Sentiment: Needham reaffirmed its “buy” rating and assigned a $120 price target, while BTIG Research maintained a “buy” rating despite lowering its target from $97 to $87. Both targets remain well above the current trading level, supporting the bullish long-term view. Analyst rating and price target updates
• Neutral Sentiment: The earnings release showed strong sales and profit growth, but EPS was below the prior-year $1.51 figure, making the sustainability of Carvana’s sharply improved results an important issue for investors.
• Negative Sentiment: The stock selloff reflects Wall Street’s disappointment with the full-year outlook. Although Carvana delivered a quarterly beat on revenue and EPS, the guidance was viewed as insufficient or below expectations, leaving investors concerned that future earnings growth may slow. Carvana Stock Falls After Earnings

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Sands Capital Management LLC boosted its stake in shares of Carvana by 44.4% in the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company's stock valued at $1,030,798,000 after purchasing an additional 751,019 shares during the last quarter. Capricorn Fund Managers Ltd bought a new stake in shares of Carvana during the first quarter worth approximately $29,866,000. Gavilan Investment Partners LLC raised its stake in shares of Carvana by 24.6% during the fourth quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company's stock worth $36,294,000 after buying an additional 17,000 shares during the last quarter. Hsbc Holdings PLC lifted its holdings in Carvana by 239.6% in the fourth quarter. Hsbc Holdings PLC now owns 221,727 shares of the company's stock valued at $93,748,000 after buying an additional 156,430 shares during the period. Finally, Swiss National Bank lifted its holdings in Carvana by 9.9% in the first quarter. Swiss National Bank now owns 395,180 shares of the company's stock valued at $124,237,000 after buying an additional 35,720 shares during the period. Institutional investors and hedge funds own 56.71% of the company's stock.

Carvana Trading Down 10.0%

The stock has a market capitalization of $65.44 billion, a P/E ratio of 36.29, a PEG ratio of 14.83 and a beta of 3.46. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The business's 50 day simple moving average is $67.03 and its 200-day simple moving average is $71.05.

Carvana (NYSE:CVNA - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.38 by $0.04. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The business's quarterly revenue was up 52.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.51 EPS. As a group, analysts forecast that Carvana Co. will post 1.63 EPS for the current year.

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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