Carvana (NYSE:CVNA) Shares Climb 5.8% - Here's Why

Key Points

• Carvana shares rose 5.8% to $63.97 in mid-day trading, although trading volume was 87% below the average daily level.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $84.05; recent targets range from $72 to $120.
• Carvana exceeded quarterly expectations, reporting $0.42 in EPS versus $0.39 expected and $7.38 billion in revenue, up 52.4% year over year. However, insiders sold more than $27.7 million of stock over the past 90 days.

Carvana Co. (NYSE:CVNA - Get Free Report)'s share price traded up 5.8% during mid-day trading on Tuesday. The company traded as high as $63.90 and last traded at $63.97. 1,690,161 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 13,443,893 shares. The stock had previously closed at $60.47.

Wall Street Analysts Forecast Growth

Several research firms have commented on CVNA. BTIG Research reaffirmed a "buy" rating and set a $87.00 price objective on shares of Carvana in a report on Tuesday, August 18th. Robert W. Baird set a $72.00 price target on shares of Carvana in a research report on Thursday, July 30th. Needham & Company LLC reissued a "buy" rating and issued a $120.00 price target on shares of Carvana in a research report on Thursday, July 30th. Barclays dropped their price target on shares of Carvana from $94.00 to $93.00 and set an "overweight" rating on the stock in a research note on Friday, July 31st. Finally, Royal Bank Of Canada set a $82.00 price objective on shares of Carvana and gave the stock an "outperform" rating in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $84.05.

Carvana Stock Performance

The company has a 50-day moving average price of $68.94 and a two-hundred day moving average price of $68.42. The stock has a market capitalization of $69.72 billion, a P/E ratio of 35.26, a PEG ratio of 1.87 and a beta of 3.49. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94.

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

Insider Activity at Carvana

In related news, 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 completion of the transaction, the chief financial officer directly owned 1,149,518 shares in the company, valued at $82,248,012.90. The trade was a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 16,789 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $70.58, for a total value of $1,184,967.62. Following the transaction, the insider directly owned 366,987 shares of the company's stock, valued at $25,901,942.46. The trade was a 4.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 402,564 shares of company stock valued at $27,689,555 in the last ninety days. 15.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CVNA. QRG Capital Management Inc. raised its stake in shares of Carvana by 490.1% during the second quarter. QRG Capital Management Inc. now owns 68,545 shares of the company's stock worth $4,512,000 after acquiring an additional 56,930 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of Carvana by 422.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 472,281 shares of the company's stock valued at $31,086,000 after purchasing an additional 381,808 shares in the last quarter. Andra AP fonden boosted its stake in shares of Carvana by 325.0% in the 2nd quarter. Andra AP fonden now owns 14,075 shares of the company's stock valued at $926,000 after purchasing an additional 10,763 shares in the last quarter. State Street Corp grew its holdings in shares of Carvana by 417.1% during the 2nd quarter. State Street Corp now owns 29,435,364 shares of the company's stock valued at $1,937,436,000 after purchasing an additional 23,742,422 shares during the last quarter. Finally, Security National Bank of SO Dak bought a new position in shares of Carvana during the 2nd quarter valued at $121,000. 56.71% of the stock is currently owned by institutional investors.

Carvana Company Profile

Carvana Co is an online used-car retailer that enables customers to research, purchase, finance, trade in and sell vehicles through its digital platform. The company's services are designed to allow customers to complete much of the vehicle-buying process online, including selecting a vehicle, arranging financing, completing documentation and scheduling delivery or pickup.

Carvana offers a broad selection of used cars, trucks and sport utility vehicles. Its platform includes vehicle listings with photographs and inspection information, while its operations support vehicle reconditioning, logistics and customer delivery.

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