Carvana (NYSE:CVNA) Shares Scheduled to Split on Thursday, May 7th

Key Points

• 5-for-1 stock split set to take effect the morning of Thursday, May 7, with the new shares payable to holders after the market close on Wednesday, May 6 (announcement made March 13).
• Carvana posted strong quarterly results—$4.22 EPS vs. $1.10 expected and revenue of $5.60 billion, up 58% year-over-year—indicating robust recent performance.
• While several firms trimmed price targets, the consensus rating is a "Moderate Buy" with a $435.14 target, and insiders have sold roughly 56,170 shares (about $20 million) in the past 90 days.

Carvana Co. (NYSE:CVNA - Free Report) shares are set to split on the morning of Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly minted shares will be payable to shareholders after the market closes on Wednesday, May 6th.

Carvana Price Performance

CVNA stock opened at $401.49 on Tuesday. The company has a debt-to-equity ratio of 1.15, a current ratio of 4.31 and a quick ratio of 2.73. The firm has a market capitalization of $87.87 billion, a P/E ratio of 49.94 and a beta of 3.61. The business's 50-day moving average is $328.87 and its two-hundred day moving average is $369.66. Carvana has a 1 year low of $194.02 and a 1 year high of $486.89.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $3.12. The company had revenue of $5.60 billion for the quarter, compared to analyst estimates of $5.24 billion. Carvana had a return on equity of 50.96% and a net margin of 6.92%.Carvana's revenue for the quarter was up 58.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.56 EPS. Analysts anticipate that Carvana will post 6.93 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada reduced their price target on Carvana from $500.00 to $440.00 and set an "outperform" rating on the stock in a research report on Thursday, February 19th. Barclays reduced their price target on Carvana from $450.00 to $430.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. Wells Fargo & Company reduced their price target on Carvana from $525.00 to $425.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. BTIG Research reduced their price target on Carvana from $535.00 to $455.00 and set a "buy" rating on the stock in a research report on Thursday, February 19th. Finally, Jefferies Financial Group reduced their price target on Carvana from $485.00 to $475.00 and set a "buy" rating on the stock in a research report on Tuesday, April 14th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $435.14.

Insider Buying and Selling at Carvana

In other news, Director J Danforth Quayle sold 2,900 shares of the firm's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $309.97, for a total transaction of $898,913.00. Following the sale, the director owned 41,913 shares of the company's stock, valued at approximately $12,991,772.61. This trade represents a 6.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Benjamin E. Huston sold 10,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $309.86, for a total value of $3,098,600.00. Following the sale, the chief operating officer directly owned 92,924 shares in the company, valued at $28,793,430.64. This trade represents a 9.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 56,170 shares of company stock worth $20,020,204. 15.19% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Carvana

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Carvana during the fourth quarter worth approximately $29,000. Farmers & Merchants Investments Inc. acquired a new position in Carvana during the fourth quarter worth approximately $29,000. ORG Partners LLC increased its holdings in shares of Carvana by 8,700.0% in the 3rd quarter. ORG Partners LLC now owns 88 shares of the company's stock valued at $33,000 after acquiring an additional 87 shares during the period. Motiv8 Investments LLC acquired a new position in shares of Carvana in the 4th quarter valued at $33,000. Finally, Salomon & Ludwin LLC increased its holdings in shares of Carvana by 112.5% in the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock valued at $37,000 after acquiring an additional 45 shares during the period. Institutional investors and hedge funds own 56.71% of the company's stock.

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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