FY2027 EPS Estimates for Carvana Increased by Zacks Research

Key Points

• Zacks Research raised Carvana’s FY2027 EPS estimate to $2.10 from $2.03, above the current consensus estimate of $1.58 per share. The firm also projected $0.41 EPS for Q4 2027 and $3.15 EPS for FY2028.
• Other analysts remain broadly constructive on the stock, with several raising price targets into the $95 to $103 range and the overall consensus rating sitting at “Moderate Buy.” The average target price is $93.14.
• Carvana recently beat expectations in its latest quarter, reporting $1.69 EPS versus the $0.32 consensus estimate on revenue of $6.43 billion, while showing strong profitability metrics. However, recent insider selling and higher short interest point to continued volatility.

Carvana Co. (NYSE:CVNA - Free Report) - Research analysts at Zacks Research lifted their FY2027 earnings estimates for shares of Carvana in a research report issued on Thursday, May 28th. Zacks Research analyst Team now anticipates that the company will post earnings of $2.10 per share for the year, up from their previous estimate of $2.03. The consensus estimate for Carvana's current full-year earnings is $1.58 per share. Zacks Research also issued estimates for Carvana's Q4 2027 earnings at $0.41 EPS and FY2028 earnings at $3.15 EPS.

Other equities research analysts also recently issued research reports about the stock. Gordon Haskett boosted their target price on shares of Carvana from $67.00 to $85.00 and gave the stock a "hold" rating in a research report on Thursday, April 30th. Wells Fargo & Company boosted their target price on shares of Carvana from $85.00 to $95.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Citizens Jmp boosted their target price on shares of Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research report on Friday, May 1st. Morgan Stanley boosted their target price on shares of Carvana from $90.00 to $102.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Finally, Jefferies Financial Group dropped their target price on shares of Carvana from $97.00 to $95.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $93.14.

Carvana Price Performance

CVNA opened at $73.14 on Monday. The company has a 50-day moving average of $69.70 and a 200-day moving average of $75.02. The company has a market capitalization of $80.23 billion, a P/E ratio of 44.49, a PEG ratio of 12.32 and a beta of 3.45. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09.

Carvana (NYSE:CVNA - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $0.32 by $1.37. The company had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Gavilan Investment Partners LLC bought a new stake in shares of Carvana in the 3rd quarter worth approximately $26,030,000. Intech Investment Management LLC raised its holdings in shares of Carvana by 301.4% in the 3rd quarter. Intech Investment Management LLC now owns 7,230 shares of the company's stock worth $2,727,000 after purchasing an additional 5,429 shares in the last quarter. TD Asset Management Inc raised its holdings in shares of Carvana by 5.2% in the 3rd quarter. TD Asset Management Inc now owns 133,811 shares of the company's stock worth $50,479,000 after purchasing an additional 6,643 shares in the last quarter. Picton Mahoney Asset Management raised its holdings in shares of Carvana by 581.4% in the 3rd quarter. Picton Mahoney Asset Management now owns 16,491 shares of the company's stock worth $6,220,000 after purchasing an additional 14,071 shares in the last quarter. Finally, Sands Capital Management LLC raised its holdings in shares of Carvana by 87.7% in the 3rd quarter. Sands Capital Management LLC now owns 1,691,515 shares of the company's stock worth $638,107,000 after purchasing an additional 790,288 shares in the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, insider Thomas Taira sold 18,850 shares of Carvana stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $68.20, for a total value of $1,285,570.00. Following the completion of the transaction, the insider directly owned 292,820 shares of the company's stock, valued at approximately $19,970,324. The trade was a 6.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 Carvana stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $77.44, for a total transaction of $4,936,672.50. Following the completion of the transaction, the chief financial officer directly owned 1,050,635 shares of the company's stock, valued at $81,359,073.13. This trade represents a 5.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 281,205 shares of company stock worth $19,495,895. Corporate insiders own 15.19% of the company's stock.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research raised its earnings estimates for Carvana’s Q2 2027 and Q1 2028 results, signaling improved expectations for future profitability. Zacks Research earnings estimate updates
• Positive Sentiment: Lower crude oil and diesel prices could reduce Carvana’s logistics costs, potentially supporting margins because the company relies on long-distance vehicle transport. Iran US Peace Progress And What Lower Fuel Costs Mean For Carvana
• Neutral Sentiment: One article noted that Carvana and Revolve stocks traded up, but it did not provide a clear company-specific catalyst for the move. Carvana and Revolve Stocks Trade Up, What You Need To Know
• Negative Sentiment: Zacks Research trimmed some near-term and FY2027 earnings forecasts, indicating analysts still see pressure in parts of Carvana’s earnings trajectory. Zacks Research estimate cuts
• Negative Sentiment: Short interest in Carvana surged sharply in May, suggesting more bearish sentiment and the potential for continued trading volatility. Carvana short interest update
• Negative Sentiment: Fresh articles focused on Carvana being down since its last earnings report, reinforcing that investors are still questioning the stock’s post-earnings momentum. Why Is Carvana (CVNA) Down 7.2% Since Last Earnings Report?

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.

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