Carvana Co. (NYSE:CVNA) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street’s consensus rating on Carvana is “Moderate Buy”: Of 25 analysts, 16 rate the stock a buy, one a strong buy, and eight a hold; the average 12-month price target is $82.09.
• Quarterly results were mixed: Carvana’s earnings of $0.39 per share missed the $0.44 consensus, while revenue of $8.04 billion beat expectations and rose 42.4% year over year.
• Analyst targets vary, ranging from BNP Paribas Exane’s $67 neutral target to Argus’s $100 target. Company insiders sold about 636,000 shares worth roughly $45 million over the past 90 days.

Shares of Carvana Co. (NYSE:CVNA - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-five ratings firms that are currently covering the firm, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $82.09.

Several research analysts have commented on CVNA shares. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $85.00 price objective on shares of Carvana in a report on Thursday, October 29th. Evercore set a $75.00 target price on Carvana in a report on Thursday, July 30th. Stephens reissued an "overweight" rating and issued a $83.00 target price (down from $91.50) on shares of Carvana in a research note on Tuesday, October 6th. Argus set a $100.00 price target on Carvana in a report on Tuesday. Finally, BNP Paribas Exane reduced their price target on Carvana from $69.00 to $67.00 and set a "neutral" rating for the company in a report on Thursday, October 29th.

Carvana Trading Down 4.2%

Shares of CVNA stock opened at $73.02 on Wednesday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.43 and a current ratio of 4.05. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The company has a market capitalization of $80.56 billion, a PE ratio of 36.66, a price-to-earnings-growth ratio of 1.96 and a beta of 3.66. The business's fifty day moving average is $65.84 and its 200 day moving average is $68.81.

Carvana (NYSE:CVNA - Get Free Report) last announced its earnings results on Wednesday, October 28th. The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.05). Carvana had a return on equity of 34.77% and a net margin of 6.21%. The company had revenue of $8.04 billion during the quarter, compared to analysts' expectations of $7.71 billion. During the same quarter last year, the firm posted $1.03 earnings per share. The firm's revenue was up 42.4% on a year-over-year basis. On average, equities research analysts anticipate that Carvana will post 1.59 EPS for the current fiscal year.

Insider Activity

In related news, CFO Mark Jenkins sold 63,750 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $61.64, for a total transaction of $3,929,550.00. Following the sale, the chief financial officer directly owned 1,142,502 shares of the company's stock, valued at $70,423,823.28. This trade represents a 5.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 16,789 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $70.58, for a total transaction of $1,184,967.62. Following the transaction, the insider directly owned 366,987 shares of the company's stock, valued at $25,901,942.46. The trade was a 4.37% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 635,960 shares of company stock valued at $44,962,096. Corporate insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. State Street Corp increased its holdings in shares of Carvana by 417.1% in the second quarter. State Street Corp now owns 29,435,364 shares of the company's stock worth $1,937,436,000 after purchasing an additional 23,742,422 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of 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 purchasing an additional 2,579,295 shares during the last quarter. Amundi raised its stake in shares of Carvana by 379.7% during the second 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 in the last quarter. Spruce House Investment Management LLC lifted its holdings in shares of Carvana by 2.6% in the 1st quarter. Spruce House Investment Management LLC now owns 2,335,000 shares of the company's stock worth $734,077,000 after buying an additional 60,000 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its stake in Carvana by 384.3% in the second quarter. The Manufacturers Life Insurance Company now owns 1,898,095 shares of the company's stock worth $124,933,000 after acquiring an additional 1,506,145 shares during the period. 56.71% of the stock is owned by hedge funds and other institutional investors.

Carvana Company Profile

Carvana Co. operates an online platform for buying and selling used cars. Customers can browse vehicle listings, arrange financing, value a trade-in, and complete much of the purchase process online. The company also offers vehicle delivery or pickup, including at some locations with its distinctive car vending machines. Founded in 2012, Carvana has expanded its operations across the United States. Its services and vehicle availability vary by market, and the company supports its online marketplace with inspection, reconditioning, and logistics operations.

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