Insider Selling: Carvana (NYSE:CVNA) Director Sells 29,640 Shares of Stock

Key Points

• Carvana director Ira Platt sold 29,640 shares for about $2.25 million, reducing his direct stake by 13.72% to 186,470 shares.
• Carvana shares fell 6.9% to $72.18 during Thursday trading.
• Quarterly revenue rose 42.4% year over year to $8.04 billion, topping estimates, while EPS of $0.39 missed the $0.44 consensus. Analysts’ average rating was “Moderate Buy,” with an average price target of $82.09.

Carvana Co. (NYSE:CVNA - Get Free Report) Director Ira Platt sold 29,640 shares of the stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $75.75, for a total transaction of $2,245,230.00. Following the transaction, the director directly owned 186,470 shares in the company, valued at approximately $14,125,102.50. This represents a 13.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Carvana Trading Down 6.9%

Shares of CVNA traded down $5.38 during mid-day trading on Thursday, reaching $72.18. The company had a trading volume of 15,885,169 shares, compared to its average volume of 13,122,187. The stock has a market cap of $79.44 billion, a price-to-earnings ratio of 36.24, a price-to-earnings-growth ratio of 1.83 and a beta of 3.66. The firm has a fifty day simple moving average of $65.85 and a 200-day simple moving average of $69.13. Carvana Co. has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The company has a current ratio of 4.05, a quick ratio of 2.43 and a debt-to-equity ratio of 0.86.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The company reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.05). The firm had revenue of $8.04 billion for the quarter, compared to analyst estimates of $7.71 billion. Carvana had a return on equity of 34.77% and a net margin of 6.21%. The company's quarterly revenue was up 42.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.03 earnings per share. On average, sell-side analysts anticipate that Carvana Co. will post 1.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have recently commented on CVNA. Hovde Group raised their price objective on Carvana from $39.50 to $48.00 and gave the stock a "market perform" rating in a report on Tuesday, August 4th. BTIG Research set a $82.00 target price on Carvana and gave the stock a "buy" rating in a report on Thursday, October 29th. Evercore set a $75.00 target price on shares of Carvana in a research report on Thursday, July 30th. Stephens reissued an "overweight" rating and set a $83.00 target price (down from $91.50) on shares of Carvana in a research report on Tuesday, October 6th. Finally, Needham & Company LLC cut their price target on shares of Carvana from $120.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, Carvana has an average rating of "Moderate Buy" and an average price target of $82.09.

Institutional Trading of Carvana

Large investors have recently added to or reduced their stakes in the stock. Jacobi Capital Management LLC acquired a new stake in Carvana during the third quarter worth about $66,000. Jefferies Financial Group Inc. boosted its stake in Carvana by 385.2% in the third quarter. Jefferies Financial Group Inc. now owns 24,598 shares of the company's stock valued at $1,538,000 after acquiring an additional 19,528 shares during the period. First Command Advisory Services Inc. grew its holdings in shares of Carvana by 286.0% during the third quarter. First Command Advisory Services Inc. now owns 3,482 shares of the company's stock valued at $218,000 after purchasing an additional 2,580 shares during the last quarter. Lido Advisors LLC bought a new position in shares of Carvana during the third quarter valued at approximately $405,000. Finally, Keybank National Association OH grew its holdings in shares of Carvana by 34.7% during the third quarter. Keybank National Association OH now owns 6,024 shares of the company's stock valued at $377,000 after purchasing an additional 1,553 shares during the last quarter. 56.71% of the stock is currently owned by institutional investors and hedge funds.

Carvana Company Profile

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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