Hovde Group Issues Positive Forecast for Carvana (NYSE:CVNA) Stock Price

Key Points

• Hovde Group raised its Carvana price target to $48 from $39.50 while maintaining a “market perform” rating, implying nearly 30% downside from the stock’s $68.47 price. Analysts overall have a “Moderate Buy” consensus and an average target of $84.14.
• Carvana’s latest quarterly results exceeded expectations: earnings were $0.42 per share versus $0.39 estimated, while revenue rose 52.4% year over year to $7.38 billion.
• Carvana shares gained 3.5% to $68.47, but company insiders have sold 278,212 shares worth about $19.3 million over the past 90 days; institutional investors own 56.71% of the stock.

Carvana (NYSE:CVNA - Get Free Report) had its target price boosted by research analysts at Hovde Group from $39.50 to $48.00 in a research note issued to investors on Tuesday. The firm presently has a "market perform" rating on the stock. Hovde Group's price target indicates a potential downside of 29.89% from the stock's current price.

Several other research analysts have also weighed in on CVNA. Stephens boosted their price objective on shares of Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. BTIG Research dropped their price target on Carvana from $97.00 to $87.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Evercore set a $75.00 price target on Carvana in a report on Thursday. Citizens Jmp reduced their price objective on shares of Carvana from $103.00 to $83.00 and set a "market outperform" rating for the company in a research report on Thursday, July 30th. Finally, Jefferies Financial Group decreased their price objective on shares of Carvana from $95.00 to $90.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $84.14.

Carvana Stock Up 3.5%

NYSE:CVNA traded up $2.34 on Tuesday, hitting $68.47. 2,056,068 shares of the company's stock were exchanged, compared to its average volume of 14,923,836. The firm has a 50-day moving average price of $66.81 and a 200-day moving average price of $70.45. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38. 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 company has a market cap of $75.10 billion, a P/E ratio of 37.82, a price-to-earnings-growth ratio of 2.30 and a beta of 3.46.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The company had revenue of $7.38 billion during the quarter, compared to analysts' expectations of $6.90 billion. During the same quarter last year, the company earned $1.51 EPS. Carvana's revenue for the quarter was up 52.4% compared to the same quarter last year. As a group, analysts expect that Carvana will post 1.65 EPS for the current fiscal year.

Insider Activity at Carvana

In related news, COO Benjamin E. Huston sold 50,000 shares of Carvana stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.55, for a total transaction of $3,427,500.00. Following the completion of the sale, the chief operating officer directly owned 458,755 shares of the company's stock, valued at approximately $31,447,655.25. This trade represents a 9.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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 on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total value of $4,356,675.00. Following the sale, the chief financial officer directly owned 1,029,580 shares of the company's stock, valued at $70,361,497.20. This represents a 5.83% 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. Insiders have sold 278,212 shares of company stock valued at $19,343,496 in the last 90 days. Corporate insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD raised its position in shares of Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company's stock valued at $7,481,081,000 after buying an additional 1,407,762 shares in the last quarter. Vanguard Group Inc. increased its stake in Carvana by 24.7% in the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock valued at $7,082,804,000 after acquiring an additional 3,328,115 shares during the last quarter. State Street Corp increased its stake in Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company's stock valued at $2,411,751,000 after acquiring an additional 2,764,759 shares during the last quarter. Capital Research Global Investors raised its position in Carvana by 42.9% during the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock valued at $2,405,959,000 after purchasing an additional 1,711,144 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in Carvana by 55.4% during the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock worth $1,632,763,000 after purchasing an additional 1,382,852 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

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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