Citigroup Has Lowered Expectations for Carvana (NYSE:CVNA) Stock Price

Key Points

• Citigroup lowered Carvana’s price target from $93 to $90 but maintained a “Buy” rating, implying 44.57% upside from the stock’s prior close. Analysts overall rate Carvana “Moderate Buy,” with an average target of $85.86.
• Carvana’s second-quarter results exceeded expectations, with revenue of $7.38 billion and EPS of $0.42 versus estimates of $6.90 billion and $0.39. Revenue increased 52.4% year over year, while retail unit sales and adjusted EBITDA also reached record levels.
• Despite strong operating results, Carvana shares traded near $62.25 and remain well below their 52-week high of $97.38. Insiders sold approximately 278,212 shares worth $19.3 million over the past 90 days, while institutional investors own 56.71% of the stock.

Carvana (NYSE:CVNA - Get Free Report) had its target price dropped by investment analysts at Citigroup from $93.00 to $90.00 in a report released on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price target would suggest a potential upside of 44.57% from the stock's previous close.

Several other research firms have also recently weighed in on CVNA. Wells Fargo & Company set a $80.00 price objective on shares of Carvana and gave the stock an "overweight" rating in a research report on Thursday. Robert W. Baird set a $72.00 price target on shares of Carvana in a research report on Thursday. Evercore set a $75.00 price target on Carvana in a report on Thursday. BTIG Research lowered their price objective on Carvana from $97.00 to $87.00 and set a "buy" rating for the company in a research report on Thursday. Finally, DA Davidson set a $67.00 price objective on Carvana in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, Carvana presently has a consensus rating of "Moderate Buy" and an average price target of $85.86.

Carvana Price Performance

Shares of CVNA traded up $0.81 during mid-day trading on Friday, reaching $62.25. The company had a trading volume of 11,869,577 shares, compared to its average volume of 15,047,780. The company has a market capitalization of $68.28 billion, a price-to-earnings ratio of 34.43, a P/E/G ratio of 14.89 and a beta of 3.46. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The company's 50 day simple moving average is $66.97 and its 200 day simple moving average is $70.85. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. The business had revenue of $7.38 billion during the quarter, compared to analysts' expectations of $6.90 billion. Carvana had a return on equity of 39.91% and a net margin of 6.26%.The business's revenue for the quarter was up 52.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.51 EPS. Analysts expect that Carvana will post 1.63 EPS for the current year.

Insider Activity

In other Carvana news, insider Thomas Taira sold 5,597 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $67.15, for a total value of $375,838.55. Following the completion of the transaction, the insider owned 315,075 shares in the company, valued at $21,157,286.25. This trade represents a 1.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total transaction of $4,356,675.00. Following the sale, the chief financial officer directly owned 1,029,580 shares in the company, valued at $70,361,497.20. This trade represents a 5.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 278,212 shares of company stock worth $19,343,496. Corporate insiders own 15.19% of the company's stock.

Hedge Funds Weigh In On Carvana

Hedge funds and other institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD grew its holdings in Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company's stock worth $7,481,081,000 after acquiring an additional 1,407,762 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of Carvana by 24.7% during the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp grew its stake in shares of Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company's stock worth $2,411,751,000 after purchasing an additional 2,764,759 shares during the last quarter. Capital Research Global Investors increased its holdings in Carvana by 42.9% during the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock valued at $2,405,959,000 after purchasing an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Carvana by 55.4% during the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock valued at $1,632,763,000 after purchasing an additional 1,382,852 shares during the period. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana delivered a record Q2 2026, with revenue of $7.38 billion, above the roughly $6.90 billion consensus estimate, and earnings of $0.42 per share versus expectations of $0.39. Net income reached $513 million and adjusted EBITDA rose to a record $769 million, while retail unit sales increased 38% year over year. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Commentators from LikeFolio and Needham argue that the post-earnings selloff is excessive, citing strong consumer demand, continued customer adoption of Carvana’s online model and potential for significant long-term upside. Needham maintained its buy view, while Barclays retained an overweight rating. Needham says Carvana stock could double as management lowers guidance
• Positive Sentiment: Management highlighted continued platform expansion, inventory growth and AI-driven customer-service efficiencies. Same-day delivery was also expanded to the Fort Myers area, supporting Carvana’s convenience-focused strategy. Carvana Slashes Customer Service Costs Through AI Agent

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.