Carvana's (CVNA) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Carvana's stock has been reaffirmed with a "buy" rating by Needham & Company LLC, with a price target set at $500.00, indicating a potential upside of 46.71%.
• Analysts' ratings show strong interest, with one Strong Buy, fourteen Buy ratings, and six Hold ratings, resulting in an average rating of "Moderate Buy".
• Carvana reported a quarterly earnings per share (EPS) of $1.28, exceeding analysts' estimates, and saw a 41.9% year-over-year revenue increase, totaling $4.84 billion.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Needham & Company LLC in a report issued on Friday,Benzinga reports. They presently have a $500.00 price objective on the stock. Needham & Company LLC's price objective indicates a potential upside of 46.71% from the company's previous close.

Other equities analysts have also recently issued reports about the stock. Gordon Haskett started coverage on shares of Carvana in a research note on Monday, July 14th. They issued a "hold" rating and a $329.00 price objective on the stock. William Blair reissued an "outperform" rating on shares of Carvana in a report on Wednesday, July 23rd. Piper Sandler raised their price objective on shares of Carvana from $340.00 to $440.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Jefferies Financial Group set a $475.00 target price on Carvana and gave the stock a "buy" rating in a research report on Wednesday, October 1st. Finally, Morgan Stanley set a $450.00 target price on Carvana in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Carvana has an average rating of "Moderate Buy" and a consensus target price of $419.94.

Carvana Stock Performance

Shares of CVNA stock opened at $340.80 on Friday. Carvana has a 52 week low of $148.25 and a 52 week high of $413.33. The firm has a 50 day moving average of $363.65 and a two-hundred day moving average of $323.58. The company has a quick ratio of 2.58, a current ratio of 4.00 and a debt-to-equity ratio of 2.51. The stock has a market capitalization of $73.34 billion, a PE ratio of 85.41, a P/E/G ratio of 1.05 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 EPS for the quarter, topping the consensus estimate of $1.09 by $0.19. The company had revenue of $4.84 billion during 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 firm's revenue was up 41.9% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.05) EPS. On average, research analysts predict that Carvana will post 2.85 EPS for the current fiscal year.

Insider Transactions at Carvana

In other Carvana news, major shareholder Ernest C. Garcia II sold 93,376 shares of the company's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $394.16, for a total value of $36,805,084.16. Following the sale, the insider owned 6,624 shares of the company's stock, valued at $2,610,915.84. This represents a 93.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the stock in a transaction on Friday, August 1st. The shares were sold at an average price of $371.30, for a total value of $37,130,000.00. Following the sale, the insider owned 35,142,792 shares in the company, valued at approximately $13,048,518,669.60. This trade represents a 0.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,498,292 shares of company stock valued at $547,914,707 in the last 90 days. 17.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Carvana

Several hedge funds have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its stake in shares of Carvana by 13.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company's stock valued at $3,125,749,000 after buying an additional 1,823,218 shares during the period. Vanguard Group Inc. grew its stake in Carvana by 1.8% in the 2nd quarter. Vanguard Group Inc. now owns 12,764,230 shares of the company's stock worth $4,301,035,000 after acquiring an additional 229,387 shares during the period. State Street Corp raised its holdings in Carvana by 15.0% in the 2nd quarter. State Street Corp now owns 2,765,046 shares of the company's stock valued at $931,710,000 after acquiring an additional 361,624 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Carvana by 11.0% during the 2nd quarter. Geode Capital Management LLC now owns 2,232,179 shares of the company's stock worth $750,301,000 after purchasing an additional 221,161 shares during the period. Finally, Sands Capital Management LLC boosted its holdings in shares of Carvana by 1,374.3% during the second quarter. Sands Capital Management LLC now owns 901,227 shares of the company's stock worth $303,677,000 after purchasing an additional 840,096 shares during the last quarter. 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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