Citigroup Increases Carvana (NYSE:CVNA) Price Target to $490.00

Key Points

• Citigroup has raised its target price for Carvana (NYSE:CVNA) from $415.00 to $490.00, reflecting a potential upside of 25.53% from its previous close, while maintaining a "buy" rating on the stock.
• Several analysts, including Morgan Stanley and Robert W. Baird, have also increased their price targets for Carvana, demonstrating a consensus of market optimism towards the company's financial performance.
• Carvana reported a net revenue of $4.84 billion for the last quarter, surpassing analysts' expectations and marking a year-over-year increase of 41.9% in revenue.

Carvana (NYSE:CVNA - Get Free Report) had its target price lifted by equities researchers at Citigroup from $415.00 to $490.00 in a report issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's target price indicates a potential upside of 25.53% from the stock's previous close.

CVNA has been the topic of several other research reports. Morgan Stanley raised their price target on shares of Carvana from $280.00 to $290.00 and gave the stock an "overweight" rating in a research note on Thursday, May 15th. Robert W. Baird lifted their price target on shares of Carvana from $200.00 to $275.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. JPMorgan Chase & Co. upped their price target on shares of Carvana from $350.00 to $415.00 and gave the stock an "overweight" rating in a research report on Thursday. Wall Street Zen raised shares of Carvana from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. Finally, Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price for the company in a report on Friday, July 25th. Seven analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $357.37.

Carvana Price Performance

NYSE:CVNA traded up $56.75 during trading hours on Thursday, hitting $390.34. 10,873,990 shares of the stock traded hands, compared to its average volume of 4,268,759. The stock has a 50 day moving average price of $330.55 and a 200 day moving average price of $264.88. The company has a quick ratio of 2.70, a current ratio of 3.81 and a debt-to-equity ratio of 2.97. Carvana has a 1 year low of $118.50 and a 1 year high of $413.34. The company has a market cap of $83.59 billion, a price-to-earnings ratio of 136.96, a price-to-earnings-growth ratio of 1.27 and a beta of 3.59.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.19. Carvana had a net margin of 2.68% and a return on equity of 44.86%. The firm had revenue of $4.84 billion for the quarter, compared to analysts' expectations of $4.54 billion. The company's revenue for the quarter was up 41.9% compared to the same quarter last year. During the same quarter last year, the business posted ($0.05) earnings per share. Sell-side analysts forecast that Carvana will post 2.85 EPS for the current fiscal year.

Insider Activity at Carvana

In other news, major shareholder Ernest C. Garcia II sold 100,000 shares of Carvana stock in a transaction on Friday, June 6th. The stock was sold at an average price of $346.99, for a total transaction of $34,699,000.00. Following the transaction, the insider directly owned 37,092,317 shares in the company, valued at approximately $12,870,663,075.83. This trade represents a 0.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Daniel J. Gill sold 70,166 shares of Carvana stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $281.43, for a total value of $19,746,817.38. Following the completion of the transaction, the insider directly owned 201,087 shares in the company, valued at $56,591,914.41. This represents a 25.87% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,273,765 shares of company stock valued at $756,222,904. Insiders own 17.12% of the company's stock.

Institutional Trading of Carvana

A number of large investors have recently added to or reduced their stakes in the company. Hilltop National Bank acquired a new stake in shares of Carvana during the second quarter valued at about $25,000. SJS Investment Consulting Inc. boosted its position in Carvana by 960.0% during the second quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock valued at $36,000 after acquiring an additional 96 shares during the last quarter. LRI Investments LLC acquired a new stake in Carvana during the 2nd quarter worth about $42,000. Brooklyn Investment Group grew its holdings in Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock worth $29,000 after acquiring an additional 125 shares during the period. Finally, N.E.W. Advisory Services LLC bought a new stake in Carvana in the first quarter valued at $33,000. Institutional investors and hedge funds 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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