Insider Selling: Carvana (NYSE:CVNA) Director Sells 14,000 Shares of Stock

Key Points

• Ira Platt, a director at Carvana, sold 14,000 shares at an average price of $379.14, resulting in a total of approximately $5.31 million while reducing his position by nearly 66%.
• Following the sale, Carvana's stock price decreased by 2.8%, closing at $354.89, amid a trading volume of 3.5 million shares.
• Several analysts have recently increased their target prices for Carvana, with Needham & Company rating it a "buy" with a target of $500, reflecting growing confidence in the company's recovery.

Carvana Co. (NYSE:CVNA - Get Free Report) Director Ira Platt sold 14,000 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $379.14, for a total value of $5,307,960.00. Following the completion of the transaction, the director owned 7,231 shares in the company, valued at approximately $2,741,561.34. The trade was a 65.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Carvana Stock Down 2.8%

CVNA stock traded down $10.23 during trading on Thursday, hitting $354.89. 3,506,624 shares of the company's stock were exchanged, compared to its average volume of 2,279,158. The business has a 50-day moving average price of $353.67 and a two-hundred day moving average price of $288.06. The company has a current ratio of 4.00, a quick ratio of 2.58 and a debt-to-equity ratio of 2.51. The stock has a market capitalization of $76.37 billion, a price-to-earnings ratio of 91.51, a PEG ratio of 1.21 and a beta of 3.51. Carvana Co. has a 52-week low of $133.57 and a 52-week high of $413.33.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 EPS for the quarter, beating 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 analyst estimates of $4.54 billion. During the same period in the prior year, the firm posted ($0.05) earnings per share. The firm's revenue was up 41.9% on a year-over-year basis. As a group, equities research analysts expect that Carvana Co. will post 2.85 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CVNA. Needham & Company LLC boosted their target price on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Oppenheimer raised Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 price target on the stock in a research report on Friday, July 25th. DA Davidson increased their price objective on Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. Bank of America raised their target price on shares of Carvana from $375.00 to $425.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, Evercore ISI upped their price target on shares of Carvana from $365.00 to $370.00 and gave the company an "in-line" rating in a research report on Tuesday, August 12th. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Carvana currently has an average rating of "Moderate Buy" and an average price target of $383.47.

Institutional Trading of Carvana

Several hedge funds have recently modified their holdings of CVNA. Hilltop National Bank acquired a new position in Carvana during the second quarter worth about $25,000. Brooklyn Investment Group boosted its stake in shares of Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock worth $29,000 after acquiring an additional 125 shares in the last quarter. N.E.W. Advisory Services LLC acquired a new stake in shares of Carvana in the 1st quarter worth approximately $33,000. SJS Investment Consulting Inc. grew its holdings in shares of Carvana by 960.0% in the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock worth $36,000 after acquiring an additional 96 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in Carvana in the 2nd quarter valued at approximately $38,000. 56.71% of the stock is owned by institutional investors and hedge funds.

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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