Carvana Co. (NYSE:CVNA) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus is “Moderate Buy”: Of 24 brokerages covering Carvana, 16 recommend buying, seven rate it a hold, and one gives a strong-buy rating. The average 12-month price target is $84.14, above the reported $67.19 opening price.
• Carvana exceeded quarterly expectations: The company reported adjusted earnings of $0.42 per share versus the $0.39 consensus estimate and revenue of $7.38 billion versus expectations of $6.90 billion. Revenue increased 52.4% year over year.
• Insiders have been selling shares: Executives sold a combined 402,564 shares worth approximately $27.7 million over the past 90 days, though the reported transactions were conducted under pre-arranged Rule 10b5-1 trading plans.

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-four research firms that are covering the company, Marketbeat Ratings reports. Seven equities research analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $84.1364.

Several brokerages have recently weighed in on CVNA. Evercore set a $75.00 price target on Carvana in a report on Thursday, July 30th. Jefferies Financial Group reduced their target price on Carvana from $95.00 to $90.00 and set a "buy" rating for the company in a report on Tuesday, July 14th. Royal Bank Of Canada set a $82.00 price target on Carvana and gave the stock an "outperform" rating in a research note on Thursday, July 30th. BTIG Research reaffirmed a "buy" rating and set a $87.00 price target on shares of Carvana in a report on Tuesday, August 18th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $120.00 price objective on shares of Carvana in a research report on Thursday, July 30th.

Carvana Stock Performance

Shares of CVNA opened at $67.19 on Tuesday. The company has a 50-day simple moving average of $69.41 and a two-hundred day simple moving average of $68.44. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.33. The firm has a market capitalization of $73.94 billion, a PE ratio of 37.16, a price-to-earnings-growth ratio of 1.88 and a beta of 3.49. Carvana has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The business's revenue was up 52.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.51 EPS. On average, analysts anticipate that Carvana will post 1.68 EPS for the current fiscal year.

Insider Buying and Selling

In other Carvana news, VP Stephen R. Palmer sold 5,000 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $71.55, for a total transaction of $357,750.00. Following the completion of the sale, the vice president directly owned 128,886 shares in the company, valued at $9,221,793.30. The trade was a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 dated Tuesday, September 1st. The shares were sold at an average price of $71.55, for a total transaction of $4,561,312.50. Following the sale, the chief financial officer directly owned 1,149,518 shares of the company's stock, valued at $82,248,012.90. The trade was a 5.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 402,564 shares of company stock valued at $27,689,555 over the last ninety days. 15.19% of the stock is owned by insiders.

Institutional Trading of Carvana

Several large investors have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Carvana by 345.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,325,237 shares of the company's stock worth $218,867,000 after acquiring an additional 2,579,295 shares during the period. Amundi grew its position in shares of Carvana by 379.7% during the 2nd quarter. Amundi now owns 2,421,045 shares of the company's stock valued at $159,353,000 after acquiring an additional 1,916,349 shares during the period. Capital Research Global Investors increased its stake in shares of Carvana by 42.9% in the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock worth $2,405,959,000 after purchasing an additional 1,711,144 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Carvana by 384.3% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,898,095 shares of the company's stock worth $124,933,000 after purchasing an additional 1,506,145 shares in the last quarter. Finally, Bank of America Corp DE raised its holdings in Carvana by 372.0% in the 2nd quarter. Bank of America Corp DE now owns 1,791,844 shares of the company's stock worth $117,939,000 after purchasing an additional 1,412,188 shares during the period. 56.71% of the stock is currently owned by institutional investors.

Carvana Company Profile

Carvana Co NYSE: CVNA is an online used-car retailer that enables consumers to research, purchase, finance and sell vehicles through its website and mobile platform. The company offers a selection of used cars, trucks and SUVs, with vehicle listings that generally include photographs, pricing and vehicle-history information.

Customers can complete much of the vehicle-buying process online, including applying for financing, arranging trade-ins and scheduling vehicle pickup or delivery.

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