Carvana (NYSE:CVNA) Stock Price Crosses Above Fifty Day Moving Average on Disappointing Earnings

Key Points

• Carvana shares rose above their 50-day moving average, reaching $69.23 and last trading near $68.46 after quarterly revenue beat expectations. Revenue climbed 42.4% year over year to $8.04 billion, driven by strong retail unit sales.
• Despite the revenue beat, Carvana reported adjusted EPS of $0.39, below the $0.44 consensus estimate, as lower gross profit per unit and weaker wholesale profitability pressured margins.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an $81.91 price target, although several firms lowered targets. The stock’s elevated valuation and ongoing margin execution remain key risks.

Carvana Co. (NYSE:CVNA - Get Free Report)'s share price passed above its fifty day moving average during trading on Thursday after the company announced better than expected quarterly earnings. The stock has a fifty day moving average of $65.85 and traded as high as $69.23. Carvana shares last traded at $68.4610, with a volume of 23,200,815 shares trading hands.

The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.05). The business had revenue of $8.04 billion for the quarter, compared to analysts' expectations of $7.71 billion. Carvana had a net margin of 6.21% and a return on equity of 36.63%. The business'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.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Record sales and revenue drove the rally. Carvana reported third-quarter revenue of $8.04 billion, up 42.4% year over year and ahead of the roughly $7.71 billion consensus estimate. Retail unit sales reached 217,385, an increase of nearly 40%, reinforcing the company’s ability to gain share in a sluggish used-car market. Carvana Q3 2026 Earnings Call Highlights
• Positive Sentiment: Profitability and cash-flow trends remained constructive. Carvana posted quarterly net income of approximately $289 million, positive free cash flow, and its best net-debt position in nearly five years. Management also outlined long-term ambitions for 3 million annual retail units and a 12.5% operating margin, supporting the bullish growth narrative. Carvana Continues To Improve
• Positive Sentiment: Several analysts viewed the quarter favorably. Morgan Stanley named CVNA a top pick, while another research report upgraded the stock, citing robust sales growth despite difficult industry conditions. Morgan Stanley names CVNA a top pick
• Neutral Sentiment: Valuation remains a debate. Carvana’s rapid growth is attracting bullish forecasts, but its elevated valuation leaves the stock sensitive to margin trends and execution. Needham maintained a “buy” rating while lowering its price target from $120 to $100; BNP Paribas Exane cut its target to $67 and retained a neutral rating, and DA Davidson reiterated neutral with a $67 target. Needham lowers Carvana price target
• Negative Sentiment: Carvana missed earnings expectations and margins softened. Adjusted EPS was $0.39 versus consensus estimates ranging from $0.44 to $0.47. Lower gross profit per unit and weaker wholesale-related profitability tempered the otherwise strong revenue performance, keeping profitability execution a key risk for investors. Carvana beats revenue estimates as margins decline

Analysts Set New Price Targets

A number of equities analysts have commented on CVNA shares. Bank of America reaffirmed a "neutral" rating on shares of Carvana in a research note on Thursday. Needham & Company LLC cut their target price on shares of Carvana from $120.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $75.00 target price (down from $80.00) on shares of Carvana in a research note on Friday, October 23rd. BTIG Research set a $82.00 price target on shares of Carvana and gave the company a "buy" rating in a report on Thursday. Finally, Robert W. Baird set a $72.00 price target on shares of Carvana in a report on Thursday, July 30th. 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. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $81.91.

Insider Activity at Carvana

In related news, Director Ira J. Platt sold 15,000 shares of the business's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $75.50, for a total transaction of $1,132,500.00. Following the transaction, the director owned 186,470 shares in the company, valued at $14,078,485. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Thomas Taira sold 16,789 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $70.58, for a total transaction of $1,184,967.62. Following the completion of the transaction, the insider directly owned 366,987 shares of the company's stock, valued at approximately $25,901,942.46. The trade was a 4.37% decrease in their ownership of the stock. 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 358,161 shares of company stock valued at $24,164,285 over the last 90 days. Company insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CVNA. Virtue Capital Management LLC grew its stake in shares of Carvana by 4.9% during the 3rd quarter. Virtue Capital Management LLC now owns 67,017 shares of the company's stock valued at $4,191,000 after acquiring an additional 3,134 shares during the period. Greenleaf Trust increased its holdings in Carvana by 36.2% in the 3rd quarter. Greenleaf Trust now owns 5,013 shares of the company's stock worth $314,000 after acquiring an additional 1,332 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in Carvana during the 3rd quarter worth approximately $13,419,000. Vise Technologies Inc. raised its stake in Carvana by 20.8% during the 3rd quarter. Vise Technologies Inc. now owns 38,114 shares of the company's stock worth $2,384,000 after acquiring an additional 6,554 shares during the period. Finally, State of Wyoming raised its stake in Carvana by 12.4% during the 3rd quarter. State of Wyoming now owns 16,450 shares of the company's stock worth $1,029,000 after acquiring an additional 1,821 shares during the period. Hedge funds and other institutional investors own 56.71% of the company's stock.

Carvana Price Performance

The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94. The firm has a market cap of $75.34 billion, a PE ratio of 34.37, a P/E/G ratio of 1.75 and a beta of 3.55. The firm's fifty day simple moving average is $65.85 and its two-hundred day simple moving average is $69.54.

About Carvana

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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