Carvana (NYSE:CVNA) Releases Earnings Results

Key Points

• Carvana reported mixed quarterly results: earnings of $0.39 per share missed the $0.44 consensus estimate, while revenue of $8.04 billion exceeded expectations of $7.71 billion.
• Shares fell to $58.75, and the stock remains well below its 52-week high of $97.38. Carvana reported a 6.26% net margin and 37.06% return on equity.
• Analyst sentiment remains positive overall: the stock carries a “Moderate Buy” consensus rating and an average price target of $82.83, although insiders sold about $24.2 million of shares during the quarter.

Carvana (NYSE:CVNA - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.05), FiscalAI reports. The company had revenue of $8.04 billion for the quarter, compared to analysts' expectations of $7.71 billion. Carvana had a net margin of 6.26% and a return on equity of 37.06%.

Carvana Price Performance

Shares of Carvana stock traded down $0.48 on Wednesday, reaching $58.75. The company's stock had a trading volume of 11,367,043 shares, compared to its average volume of 12,960,879. The company has a market capitalization of $64.66 billion, a P/E ratio of 32.50, a PEG ratio of 1.71 and a beta of 3.55. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The stock has a 50-day moving average price of $66.01 and a 200-day moving average price of $69.80. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94.

Insider Buying and Selling at Carvana

In other news, Director Ira Platt sold 15,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $75.50, for a total transaction of $1,132,500.00. Following the transaction, the director owned 186,470 shares in the company, valued at $14,078,485. This trade represents a 7.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Thomas Taira sold 16,789 shares of Carvana stock in a transaction 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 completion of the sale, the insider directly owned 366,987 shares in the company, valued at $25,901,942.46. This represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 358,161 shares of company stock worth $24,164,285. 15.19% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms recently issued reports on CVNA. Robert W. Baird set a $72.00 target price on shares of Carvana in a research note on Thursday, July 30th. Royal Bank Of Canada set a $82.00 price target on shares of Carvana and gave the company an "outperform" rating in a research report on Thursday, July 30th. Zacks Research cut shares of Carvana from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 15th. DA Davidson set a $67.00 price objective on shares of Carvana in a research report on Thursday, July 30th. Finally, BNP Paribas Exane decreased their price objective on shares of Carvana from $86.00 to $69.00 and set a "hold" rating for the company in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $82.83.

About Carvana

Carvana Co NYSE: CVNA is an online automotive retailer that sells used vehicles through its digital platform. Customers can browse vehicles, review detailed descriptions and vehicle history information, arrange financing, complete transactions online and choose home delivery or pickup at a Carvana location.

The company also provides vehicle trade-in services and offers related products, including vehicle protection plans and other automotive services. Carvana is known for its automated, glass-enclosed vehicle vending machines, which provide an alternative pickup experience in select markets.

Founded in 2012 and headquartered in Tempe, Arizona, Carvana began operations as an online used-car retailer in 2013 and went public in 2017.

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