Carvana's (CVNA) Overweight Rating Reaffirmed at Stephens

Key Points

• Stephens reaffirmed an "overweight" rating for Carvana (CVNA) and set a price target of $440.00, indicating a potential upside of 12.66% from its previous close.
• Other analysts, including Needham & Company and JPMorgan Chase, have raised their price targets for Carvana, showing a positive sentiment with a consensus rating of "Moderate Buy."
• Carvana's recent earnings report disclosed a 41.9% year-over-year revenue increase, with an EPS of $1.28, exceeding analyst estimates significantly.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "overweight" rating reissued by stock analysts at Stephens in a research note issued on Tuesday,Benzinga reports. They currently have a $440.00 target price on the stock. Stephens' price objective would indicate a potential upside of 12.66% from the company's previous close.

A number of other equities analysts have also commented on the company. Needham & Company LLC lifted their price objective on Carvana from $340.00 to $500.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. William Blair reiterated an "outperform" rating on shares of Carvana in a report on Wednesday, July 23rd. Gordon Haskett assumed coverage on Carvana in a research note on Monday, July 14th. They issued a "hold" rating and a $329.00 price objective on the stock. JPMorgan Chase & Co. raised their target price on Carvana from $415.00 to $425.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 17th. Finally, Wells Fargo & Company lifted their target price on Carvana from $390.00 to $425.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $387.88.

Carvana Trading Down 0.1%

NYSE CVNA opened at $390.56 on Tuesday. Carvana has a twelve month low of $148.25 and a twelve month high of $413.33. The business's fifty day moving average is $357.62 and its 200 day moving average is $297.91. 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 company has a market cap of $84.05 billion, a price-to-earnings ratio of 97.79, a price-to-earnings-growth ratio of 1.28 and a beta of 3.51.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%.The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.54 billion. During the same period last year, the firm posted ($0.05) earnings per share. The business'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 EPS for the current fiscal year.

Insider Activity at Carvana

In other news, insider Paul W. Breaux sold 15,000 shares of the business's stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $375.00, for a total transaction of $5,625,000.00. Following the completion of the transaction, the insider owned 83,018 shares of the company's stock, valued at approximately $31,131,750. The trade was a 15.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ernest C. Garcia III sold 700 shares of the company's stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $394.36, for a total transaction of $276,052.00. Following the completion of the transaction, the chief executive officer owned 421,440 shares in the company, valued at approximately $166,199,078.40. This trade represents a 0.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,366,037 shares of company stock valued at $840,850,804. Company insiders own 16.36% of the company's stock.

Hedge Funds Weigh In On Carvana

A number of institutional investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD grew its position in Carvana by 13.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company's stock worth $3,125,749,000 after acquiring an additional 1,823,218 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Carvana by 9.7% during the 1st quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock valued at $2,620,785,000 after purchasing an additional 1,109,476 shares during the last quarter. Sands Capital Management LLC raised its holdings in shares of Carvana by 1,374.3% during the 2nd quarter. Sands Capital Management LLC now owns 901,227 shares of the company's stock valued at $303,677,000 after buying an additional 840,096 shares in the last quarter. Norges Bank purchased a new position in shares of Carvana during the 2nd quarter valued at about $259,468,000. Finally, Massachusetts Financial Services Co. MA bought a new stake in Carvana in the 2nd quarter worth approximately $193,091,000. Institutional investors own 56.71% of the company's stock.

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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