Carvana (NYSE:CVNA) Stock Rating Upgraded by Zacks Research

Key Points

• Carvana's stock rating has been upgraded by Zacks Research from "hold" to "strong-buy," indicating increased analyst confidence in the company's future performance.
• Despite a high debt-to-equity ratio of 2.51, Carvana reported strong financial results with earnings per share of $1.28, exceeding analysts' expectations and showing significant year-over-year revenue growth of 41.9%.
• Recent insider transactions show a decrease in ownership as key executives sold thousands of shares, with total sales exceeding $787 million in the last ninety days.

Carvana (NYSE:CVNA - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

CVNA has been the subject of a number of other research reports. Gordon Haskett began coverage on shares of Carvana in a research report on Monday, July 14th. They set a "hold" rating and a $329.00 target price for the company. JPMorgan Chase & Co. increased their price objective on shares of Carvana from $415.00 to $425.00 and gave the company an "overweight" rating in a research report on Wednesday, September 17th. Royal Bank Of Canada increased their price objective on shares of Carvana from $400.00 to $460.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. Citigroup reiterated an "outperform" rating on shares of Carvana in a research report on Thursday, July 31st. Finally, Needham & Company LLC increased their price objective on shares of Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $404.94.

Carvana Price Performance

Shares of NYSE:CVNA opened at $370.73 on Monday. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. The firm has a fifty day moving average price of $365.99 and a 200 day moving average price of $312.47. Carvana has a fifty-two week low of $148.25 and a fifty-two week high of $413.33. The firm has a market cap of $79.78 billion, a price-to-earnings ratio of 92.92, a P/E/G ratio of 1.21 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.19. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The firm had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.54 billion. During the same quarter in the prior year, the business earned ($0.05) earnings per share. Carvana's revenue for the quarter was up 41.9% on a year-over-year basis. As a group, sell-side analysts expect that Carvana will post 2.85 earnings per share for the current fiscal year.

Insider Transactions at Carvana

In other news, COO Benjamin E. Huston sold 10,000 shares of the firm's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $389.27, for a total value of $3,892,700.00. Following the completion of the sale, the chief operating officer owned 103,197 shares in the company, valued at approximately $40,171,496.19. This trade represents a 8.83% 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, CFO Mark W. Jenkins sold 12,750 shares of Carvana stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $389.27, for a total transaction of $4,963,192.50. Following the sale, the chief financial officer owned 207,362 shares of the company's stock, valued at $80,719,805.74. The trade was a 5.79% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,189,966 shares of company stock worth $787,174,666. 16.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Carvana

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CVNA. Hilltop National Bank bought a new stake in Carvana during the 2nd quarter valued at about $25,000. Brooklyn Investment Group lifted its holdings in Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock valued at $29,000 after buying an additional 125 shares in the last quarter. N.E.W. Advisory Services LLC bought a new stake in Carvana during the 1st quarter valued at about $33,000. SJS Investment Consulting Inc. lifted its holdings in Carvana by 960.0% during the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock valued at $36,000 after buying an additional 96 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new stake in Carvana during the 2nd quarter valued at about $38,000. 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.

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