Carvana (NYSE:CVNA) CFO Sells 63,750 Shares of Stock

Key Points

• Carvana CFO Mark Jenkins sold 63,750 shares for approximately $4.56 million at an average price of $71.55. The sale was conducted under a pre-arranged Rule 10b5-1 plan, leaving him with 1,149,518 shares.
• Carvana recently reported stronger-than-expected quarterly results, with EPS of $0.42 versus the $0.39 consensus estimate and revenue of $7.38 billion, up 52.4% year over year.
• The stock traded near $73.21, while analysts maintained a consensus “Moderate Buy” rating with an average price target of $84.14; institutional investors own 56.71% of outstanding shares.

Carvana Co. (NYSE:CVNA - Get Free Report) CFO Mark Jenkins sold 63,750 shares of the business's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $71.55, for a total transaction of $4,561,312.50. Following the transaction, the chief financial officer owned 1,149,518 shares in the company, valued at $82,248,012.90. This represents a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carvana Stock Performance

Carvana stock traded down $0.95 during mid-day trading on Thursday, hitting $73.21. 5,865,145 shares of the company's stock traded hands, compared to its average volume of 14,093,805. The firm has a 50 day simple moving average of $68.51 and a two-hundred day simple moving average of $68.24. 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 stock has a market cap of $80.56 billion, a price-to-earnings ratio of 40.49, a P/E/G ratio of 2.08 and a beta of 3.49. Carvana Co. has a fifty-two week low of $54.46 and a fifty-two week high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company had revenue of $7.38 billion during the quarter, compared to analysts' expectations of $6.90 billion. During the same quarter in the previous year, the business posted $1.51 earnings per share. Carvana's quarterly revenue was up 52.4% on a year-over-year basis. On average, research analysts expect that Carvana Co. will post 1.68 EPS for the current fiscal year.

Institutional Trading of Carvana

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Gilder Gagnon Howe & Co. LLC grew its holdings in Carvana by 1.7% during the 2nd quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company's stock valued at $622,000 after purchasing an additional 31 shares during the last quarter. Insigneo Advisory Services LLC grew its position in Carvana by 4.8% in the 4th quarter. Insigneo Advisory Services LLC now owns 696 shares of the company's stock valued at $294,000 after acquiring an additional 32 shares during the last quarter. Benjamin Edwards Inc. grew its stake in Carvana by 6.2% in the 4th quarter. Benjamin Edwards Inc. now owns 586 shares of the company's stock worth $247,000 after acquiring an additional 34 shares in the last quarter. SJS Investment Consulting Inc. raised its stake in shares of Carvana by 29.8% during the first quarter. SJS Investment Consulting Inc. now owns 183 shares of the company's stock valued at $58,000 after acquiring an additional 42 shares in the last quarter. Finally, Moors & Cabot Inc. grew its stake in Carvana by 5.7% in the third quarter. Moors & Cabot Inc. now owns 813 shares of the company's stock worth $307,000 after purchasing an additional 44 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. UBS Group reissued a "buy" rating and set a $83.00 target price on shares of Carvana in a research report on Friday, July 31st. Morgan Stanley set a $90.00 price target on shares of Carvana and gave the company an "overweight" rating in a research note on Thursday, July 30th. Hovde Group increased their target price on shares of Carvana from $39.50 to $48.00 and gave the company a "market perform" rating in a report on Tuesday, August 4th. Robert W. Baird set a $72.00 price objective on Carvana in a research note on Thursday, July 30th. Finally, Barclays reduced their price objective on shares of Carvana from $94.00 to $93.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $84.14.

Carvana Company Profile

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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