Ernest C. Garcia III Sells 10,000 Shares of Carvana Co. (NYSE:CVNA) Stock

Key Points

• Ernest C. Garcia III, CEO of Carvana Co., sold 10,000 shares of the company's stock at an average price of $370.66, totaling $3,706,600, resulting in a 1.68% decrease in his ownership.
• Carvana reported quarterly earnings of $1.28 EPS, exceeding expectations and showing a 41.9% increase in revenue year-over-year.
• A number of analysts have raised Carvana’s price targets, with DA Davidson increasing it from $260.00 to $380.00 and Oppenheimer setting a target of $450.00, reflecting a positive outlook on the stock.

Carvana Co. (NYSE:CVNA - Get Free Report) CEO Ernest C. Garcia III sold 10,000 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $370.66, for a total value of $3,706,600.00. Following the completion of the transaction, the chief executive officer owned 586,440 shares in the company, valued at $217,369,850.40. This represents a 1.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Carvana Stock Performance

Shares of NYSE:CVNA traded down $9.23 on Tuesday, hitting $351.43. 3,348,974 shares of the company were exchanged, compared to its average volume of 4,264,759. The company's 50 day moving average price is $334.70 and its two-hundred day moving average price is $268.97. Carvana Co. has a one year low of $124.39 and a one year high of $413.33. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. The firm has a market capitalization of $75.26 billion, a price-to-earnings ratio of 88.08, a PEG ratio of 1.25 and a beta of 3.57.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.19. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same quarter in the previous year, the firm posted ($0.05) EPS. The business's revenue was up 41.9% compared to the same quarter last year. Research analysts expect that Carvana Co. will post 2.85 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CVNA. DA Davidson raised their price target on shares of Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. William Blair reiterated an "outperform" rating on shares of Carvana in a research note on Wednesday, July 23rd. Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 price target for the company in a research note on Friday, July 25th. Piper Sandler upped their price target on Carvana from $340.00 to $440.00 and gave the stock an "overweight" rating in a research note on Thursday, July 31st. Finally, Citigroup reiterated an "outperform" rating on shares of Carvana in a research note on Thursday, July 31st. Six investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Carvana presently has an average rating of "Moderate Buy" and an average price target of $379.65.

Institutional Trading of Carvana

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hilltop National Bank bought a new stake in Carvana in the second quarter valued at about $25,000. Brooklyn Investment Group increased its stake in Carvana by 961.5% in the first quarter. Brooklyn Investment Group now owns 138 shares of the company's stock valued at $29,000 after acquiring an additional 125 shares during the period. N.E.W. Advisory Services LLC bought a new stake in Carvana in the first quarter valued at about $33,000. SJS Investment Consulting Inc. increased its stake in Carvana by 960.0% in 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 period. Finally, LRI Investments LLC bought a new stake in Carvana in the second quarter valued at about $42,000. Institutional investors own 56.71% of the company's stock.

Carvana Company Profile

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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