JPMorgan Chase & Co. Cuts Carvana (NYSE:CVNA) Price Target to $455.00

Key Points

• JPMorgan Chase & Co. cut its price target on Carvana to $455 (from $490) while maintaining an "overweight" rating, implying roughly a 38.8% upside from the current price.
• Carvana reported a strong quarter — EPS $4.22 vs. $1.10 expected and revenue of $5.60B (up 58% year-over-year), with a 6.92% net margin and 50.96% ROE.
• The stock will undergo a 5-for-1 split on May 7; analysts have been trimming targets but the consensus remains a "Moderate Buy" with an average price target of $435.59.

Carvana (NYSE:CVNA - Get Free Report) had its price target reduced by JPMorgan Chase & Co. from $490.00 to $455.00 in a research note issued on Thursday,MarketScreener reports. The firm presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 38.81% from the company's current price.

Several other research analysts have also issued reports on the company. Gordon Haskett dropped their target price on Carvana from $350.00 to $335.00 and set a "hold" rating for the company in a research report on Monday. Evercore dropped their price objective on Carvana from $430.00 to $390.00 in a report on Thursday, February 19th. Wells Fargo & Company cut their price objective on Carvana from $525.00 to $425.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. Weiss Ratings lowered Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 24th. Finally, BTIG Research decreased their target price on Carvana from $535.00 to $455.00 and set a "buy" rating for the company in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $435.59.

Carvana Price Performance

NYSE:CVNA opened at $327.78 on Thursday. The firm has a market capitalization of $71.73 billion, a price-to-earnings ratio of 40.88 and a beta of 3.61. The company has a debt-to-equity ratio of 1.15, a current ratio of 4.31 and a quick ratio of 2.73. The business has a 50 day simple moving average of $335.25 and a 200-day simple moving average of $370.74. Carvana has a 1 year low of $192.56 and a 1 year high of $486.89.

Carvana's stock is scheduled to split on Thursday, May 7th. The 5-1 split was announced on Friday, March 13th. The newly issued shares will be issued to shareholders after the closing bell on Wednesday, May 6th.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share for the quarter, beating analysts' consensus estimates of $1.10 by $3.12. The business had revenue of $5.60 billion for the quarter, compared to analysts' expectations of $5.24 billion. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business's revenue was up 58.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.56 earnings per share. Equities analysts forecast that Carvana will post 2.85 EPS for the current year.

Insider Activity at Carvana

In other Carvana news, insider Thomas Taira sold 1,047 shares of Carvana stock in a transaction on Monday, February 9th. The stock was sold at an average price of $398.54, for a total transaction of $417,271.38. Following the completion of the sale, the insider directly owned 66,625 shares of the company's stock, valued at $26,552,727.50. The trade was a 1.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director J Danforth Quayle sold 2,900 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $309.97, for a total value of $898,913.00. Following the completion of the sale, the director owned 41,913 shares of the company's stock, valued at $12,991,772.61. This represents a 6.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 52,400 shares of company stock worth $18,734,634 over the last three months. Corporate insiders own 17.12% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hsbc Holdings PLC lifted its position in shares of Carvana by 239.6% in the 4th quarter. Hsbc Holdings PLC now owns 221,727 shares of the company's stock worth $93,748,000 after purchasing an additional 156,430 shares during the period. Rockefeller Capital Management L.P. raised its stake in Carvana by 26.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,588 shares of the company's stock worth $1,092,000 after buying an additional 534 shares in the last quarter. World Investment Advisors lifted its holdings in Carvana by 14.8% during the fourth quarter. World Investment Advisors now owns 793 shares of the company's stock worth $335,000 after buying an additional 102 shares during the period. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Carvana during the fourth quarter worth $106,000. Finally, AG Campbell Advisory LLC bought a new stake in Carvana during the fourth quarter valued at about $319,000. 56.71% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.