Carvana (NYSE:CVNA) Shares Gap Down - Here's What Happened

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $199.56, but opened at $188.20. Carvana shares last traded at $190.01, with a volume of 1,823,458 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Evercore ISI raised their price objective on shares of Carvana from $240.00 to $245.00 and gave the stock an "in-line" rating in a research report on Tuesday, December 3rd. Wells Fargo & Company increased their price objective on Carvana from $175.00 to $250.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 23rd. Piper Sandler boosted their target price on Carvana from $151.00 to $225.00 and gave the company a "neutral" rating in a report on Thursday, October 31st. Robert W. Baird increased their price target on Carvana from $160.00 to $240.00 and gave the stock a "neutral" rating in a report on Thursday, October 31st. Finally, Stephens reissued an "overweight" rating and issued a $300.00 price objective on shares of Carvana in a research note on Thursday. Eleven equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $229.18.

Carvana Price Performance

The company has a market cap of $36.78 billion, a price-to-earnings ratio of 17,733.73 and a beta of 3.32. The company has a fifty day simple moving average of $236.67 and a two-hundred day simple moving average of $180.45. The company has a quick ratio of 2.12, a current ratio of 3.25 and a debt-to-equity ratio of 18.99.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.41. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.47 billion. Carvana's revenue was up 31.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 earnings per share. On average, equities research analysts anticipate that Carvana Co. will post 0.76 earnings per share for the current fiscal year.

Insider Transactions at Carvana

In related news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $190.70, for a total transaction of $19,070,000.00. Following the sale, the insider now owns 38,458,131 shares in the company, valued at approximately $7,333,965,581.70. This trade represents a 0.26 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Mark W. Jenkins sold 208,495 shares of the business's stock in a transaction on Monday, November 4th. The shares were sold at an average price of $224.43, for a total value of $46,792,532.85. Following the completion of the transaction, the chief financial officer now owns 90,732 shares of the company's stock, valued at $20,362,982.76. This trade represents a 69.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,251,908 shares of company stock valued at $255,943,285 in the last ninety days. Corporate insiders own 17.18% of the company's stock.

Institutional Investors Weigh In On Carvana

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Sugarloaf Wealth Management LLC acquired a new position in Carvana during the third quarter worth approximately $32,000. Versant Capital Management Inc acquired a new stake in shares of Carvana during the 4th quarter worth $42,000. Capital Performance Advisors LLP purchased a new position in shares of Carvana in the 3rd quarter worth $40,000. First Horizon Advisors Inc. boosted its holdings in Carvana by 363.0% in the third quarter. First Horizon Advisors Inc. now owns 250 shares of the company's stock valued at $44,000 after acquiring an additional 196 shares during the last quarter. Finally, Benjamin F. Edwards & Company Inc. purchased a new stake in Carvana during the second quarter valued at about $51,000. 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.