Carvana (NYSE:CVNA) Stock Price Down 3.2% - Should You Sell?

Key Points

• Carvana's stock price decreased by 3.2% to $353.37, with trading volume dropping to 441,289 shares, a significant decline of 89% from its average daily volume.
• Analysts have mixed views on Carvana, with 12 analysts rating it as a Buy while others give it Hold or Neutral ratings, leading to an average price target of $383.47.
• Major shareholder Ernest C. Garcia II significantly reduced his holdings, selling over 93,000 shares, marking a drastic decrease in his ownership stake.

Carvana Co. (NYSE:CVNA - Get Free Report)'s stock price dropped 3.2% on Thursday . The company traded as low as $357.25 and last traded at $353.37. Approximately 441,289 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 3,971,607 shares. The stock had previously closed at $365.12.

Wall Street Analyst Weigh In

Several analysts have weighed in on CVNA shares. Oppenheimer raised Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 price objective for the company in a report on Friday, July 25th. Needham & Company LLC lifted their price objective on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a report on Thursday, July 31st. DA Davidson lifted their price objective on Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. JMP Securities lifted their price objective on Carvana from $440.00 to $460.00 and gave the company a "market outperform" rating in a report on Thursday, July 31st. Finally, Stephens boosted their target price on Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a research note on Monday, July 7th. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $383.47.

Carvana Price Performance

The stock has a market cap of $76.63 billion, a price-to-earnings ratio of 89.22, a price-to-earnings-growth ratio of 1.24 and a beta of 3.51. The company has a 50-day simple moving average of $353.67 and a two-hundred day simple moving average of $288.06. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.19. The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates 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 quarter in the previous year, the firm earned ($0.05) EPS. As a group, equities research analysts forecast that Carvana Co. will post 2.85 EPS for the current year.

Insider Buying and Selling

In related news, major shareholder Ernest C. Garcia II sold 93,376 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $394.16, for a total transaction of $36,805,084.16. Following the transaction, the insider directly owned 6,624 shares of the company's stock, valued at approximately $2,610,915.84. The trade was a 93.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the business's stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $353.76, for a total value of $35,376,000.00. Following the transaction, the insider directly owned 36,437,346 shares in the company, valued at $12,890,075,520.96. The trade was a 0.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,384,157 shares of company stock worth $841,999,107 over the last three months. 17.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. American Trust acquired a new position in Carvana in the 2nd quarter valued at $394,000. Orion Porfolio Solutions LLC lifted its position in shares of Carvana by 27.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 4,380 shares of the company's stock valued at $1,476,000 after acquiring an additional 940 shares during the period. B. Riley Wealth Advisors Inc. bought a new stake in shares of Carvana during the 2nd quarter valued at $228,000. Marex Group plc bought a new stake in shares of Carvana during the 2nd quarter valued at $4,824,000. Finally, State of Wyoming lifted its position in shares of Carvana by 27.0% during the 2nd quarter. State of Wyoming now owns 1,149 shares of the company's stock valued at $387,000 after acquiring an additional 244 shares during the period. 56.71% of the stock is owned by institutional investors and hedge funds.

About Carvana

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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