Carvana (NYSE:CVNA) Shares Gap Up - What's Next?

Carvana Co. (NYSE:CVNA - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $172.22, but opened at $183.25. Carvana shares last traded at $180.90, with a volume of 891,416 shares trading hands.

Analysts Set New Price Targets

A number of research firms have recently weighed in on CVNA. Citigroup boosted their price target on Carvana from $277.00 to $320.00 and gave the stock a "buy" rating in a report on Friday, February 21st. Robert W. Baird boosted their target price on shares of Carvana from $200.00 to $250.00 and gave the company a "neutral" rating in a research note on Thursday, February 20th. Stephens reaffirmed an "overweight" rating and set a $300.00 price target on shares of Carvana in a research note on Monday, March 3rd. Needham & Company LLC reissued a "buy" rating and issued a $340.00 price objective on shares of Carvana in a research report on Friday, March 7th. Finally, Royal Bank of Canada raised their target price on shares of Carvana from $280.00 to $320.00 and gave the stock an "outperform" rating in a research report on Thursday, February 20th. Eight research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $262.71.

Carvana Trading Up 8.8 %

The business's 50-day moving average is $228.94 and its two-hundred day moving average is $214.28. The company has a current ratio of 3.64, a quick ratio of 2.12 and a debt-to-equity ratio of 3.82. The stock has a market capitalization of $38.66 billion, a PE ratio of 115.52 and a beta of 3.56.

Carvana (NYSE:CVNA - Get Free Report) last posted its earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.27. The business had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.32 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. On average, analysts predict that Carvana Co. will post 2.85 earnings per share for the current year.

Insider Activity

In related news, CFO Mark W. Jenkins sold 10,000 shares of the business's stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $200.75, for a total value of $2,007,500.00. Following the transaction, the chief financial officer now owns 189,097 shares in the company, valued at approximately $37,961,222.75. The trade was a 5.02 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul W. Breaux sold 1,362 shares of the stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $270.08, for a total value of $367,848.96. Following the transaction, the insider now owns 153,240 shares of the company's stock, valued at approximately $41,387,059.20. This trade represents a 0.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 69,784 shares of company stock worth $18,599,844. 17.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CVNA. FMR LLC grew its stake in Carvana by 90.8% in the third quarter. FMR LLC now owns 12,361,790 shares of the company's stock worth $2,152,311,000 after purchasing an additional 5,882,656 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Carvana by 5.6% during the 4th quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company's stock worth $2,323,463,000 after buying an additional 610,234 shares during the last quarter. Lingotto Investment Management LLP grew its position in shares of Carvana by 1.5% in the 4th quarter. Lingotto Investment Management LLP now owns 3,987,150 shares of the company's stock worth $810,827,000 after acquiring an additional 57,215 shares in the last quarter. Durable Capital Partners LP increased its holdings in shares of Carvana by 6.3% in the 4th quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company's stock valued at $440,932,000 after acquiring an additional 129,246 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Carvana by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 1,878,796 shares of the company's stock valued at $381,592,000 after acquiring an additional 75,250 shares in the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

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.