Carvana (NYSE:CVNA) Upgraded to Buy at Wall Street Zen

Key Points

• Carvana (NYSE:CVNA) has been upgraded from a "hold" to a "buy" rating by analysts at Wall Street Zen, reflecting improved market sentiment towards the company.
• Wells Fargo & Company significantly raised their price target for Carvana shares from $390 to $425, emphasizing a positive outlook on the stock.
• Carvana's recent quarterly earnings showed a profit of $1.28 EPS, exceeding analysts' expectations, and demonstrating a 41.9% increase in revenue year-over-year.

Wall Street Zen upgraded shares of Carvana (NYSE:CVNA - Free Report) from a hold rating to a buy rating in a research report report published on Saturday.

Several other equities analysts have also weighed in on the stock. Piper Sandler increased their price objective on shares of Carvana from $340.00 to $440.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Evercore ISI increased their target price on shares of Carvana from $365.00 to $370.00 and gave the stock an "in-line" rating in a report on Tuesday, August 12th. Gordon Haskett initiated coverage on shares of Carvana in a report on Monday, July 14th. They issued a "hold" rating and a $329.00 target price on the stock. Citigroup reiterated an "outperform" rating on shares of Carvana in a report on Thursday, July 31st. Finally, Oppenheimer upgraded shares of Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price on the stock in a report on Friday, July 25th. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $384.06.

Carvana Price Performance

Carvana stock traded up $0.02 during trading hours on Friday, hitting $391.91. 987,673 shares of the stock were exchanged, compared to its average volume of 3,942,001. 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 stock has a market capitalization of $84.34 billion, a P/E ratio of 98.09, a P/E/G ratio of 1.28 and a beta of 3.51. Carvana has a 12 month low of $148.25 and a 12 month high of $413.33. The business's 50-day moving average is $356.76 and its two-hundred day moving average is $296.49.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data 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 analysts' expectations of $4.54 billion. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The company's quarterly revenue was up 41.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.05) earnings per share. Equities research analysts expect that Carvana will post 2.85 EPS for the current fiscal year.

Insider Buying and Selling at Carvana

In other Carvana news, insider Paul W. Breaux sold 15,000 shares of the firm's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $375.00, for a total value of $5,625,000.00. Following the transaction, the insider directly owned 83,018 shares of the company's stock, valued at $31,131,750. This trade represents a 15.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ira J. Platt sold 14,000 shares of the business's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $379.14, for a total transaction of $5,307,960.00. Following the completion of the transaction, the director owned 7,231 shares of the company's stock, valued at $2,741,561.34. The trade was a 65.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,416,037 shares of company stock worth $857,141,304 over the last quarter. 17.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Carvana

Several hedge funds and other institutional investors have recently made changes to their positions in CVNA. J.Safra Asset Management Corp grew its holdings in Carvana by 140.8% during the 1st quarter. J.Safra Asset Management Corp now owns 3,390 shares of the company's stock worth $709,000 after acquiring an additional 1,982 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in Carvana by 333.1% during the 1st quarter. Farther Finance Advisors LLC now owns 3,482 shares of the company's stock worth $740,000 after acquiring an additional 2,678 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Carvana in the 4th quarter valued at $36,527,000. Brucke Financial Inc. acquired a new position in shares of Carvana during the 4th quarter valued at $415,000. Finally, Berkshire Capital Holdings Inc. lifted its position in shares of Carvana by 632,200.0% during the 1st quarter. Berkshire Capital Holdings Inc. now owns 63,230 shares of the company's stock valued at $13,220,000 after acquiring an additional 63,220 shares during the period. 56.71% of the stock is owned by institutional investors.

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.