Short Interest in Carvana Co. (NYSE:CVNA) Increases By 426.2%

Key Points

• Short interest in Carvana surged 426.2% in May, reaching 73.0 million shares, or about 7.8% of the float. The short-interest ratio is 6.7 days, suggesting elevated bearish bets and potential volatility.
• Analysts remain generally positive on CVNA, with an average rating of “Moderate Buy” and an average price target of $93.14. Recent calls included higher targets from Morgan Stanley and BNP Paribas Exane, though Argus sharply cut its target to $100 from $500.
• Carvana reported strong quarterly results, posting $1.69 EPS versus $0.32 expected and revenue of $6.43 billion versus $6.12 billion estimated. However, insiders have sold shares recently, including CFO Mark W. Jenkins, and insider sales totaled 281,205 shares over the last 90 days.

Carvana Co. (NYSE:CVNA - Get Free Report) was the target of a large growth in short interest during the month of May. As of May 15th, there was short interest totaling 73,007,090 shares, a growth of 426.2% from the April 30th total of 13,873,145 shares. Approximately 7.8% of the shares of the stock are sold short. Based on an average trading volume of 10,927,061 shares, the short-interest ratio is presently 6.7 days.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Robert W. Baird set a $88.00 price objective on shares of Carvana in a research note on Friday, May 15th. Morgan Stanley upped their price objective on shares of Carvana from $90.00 to $102.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. BNP Paribas Exane upped their price objective on shares of Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. William Blair reissued an "outperform" rating on shares of Carvana in a research note on Friday, March 13th. Finally, Argus cut their price target on Carvana from $500.00 to $100.00 in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat, Carvana has an average rating of "Moderate Buy" and an average price target of $93.14.

Insider Activity

In other Carvana news, CFO Mark W. Jenkins sold 63,750 shares of the business's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $77.44, for a total transaction of $4,936,672.50. Following the sale, the chief financial officer directly owned 1,050,635 shares of the company's stock, valued at $81,359,073.13. The trade was a 5.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,590 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $79.97, for a total value of $447,032.30. Following the completion of the sale, the insider owned 60,452 shares in the company, valued at $4,834,346.44. This trade represents a 8.46% 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. Over the last ninety days, insiders sold 281,205 shares of company stock worth $19,495,895. Company insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CVNA. First Horizon Corp raised its position in shares of Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company's stock valued at $176,000 after purchasing an additional 25 shares during the period. Finivi Inc. increased its holdings in Carvana by 4.6% during the 4th quarter. Finivi Inc. now owns 698 shares of the company's stock worth $295,000 after acquiring an additional 31 shares during the period. HB Wealth Management LLC increased its holdings in shares of Carvana by 1.0% in the 4th quarter. HB Wealth Management LLC now owns 3,190 shares of the company's stock worth $1,346,000 after buying an additional 31 shares during the last quarter. Gilder Gagnon Howe & Co. LLC increased its stake in Carvana by 1.7% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company's stock valued at $622,000 after acquiring an additional 31 shares during the last quarter. Finally, Insigneo Advisory Services LLC increased its stake in Carvana by 4.8% in the fourth quarter. Insigneo Advisory Services LLC now owns 696 shares of the company's stock valued at $294,000 after acquiring an additional 32 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company's stock.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research raised its earnings estimates for Carvana’s Q1 2027, Q1 2028, and FY2028 results, suggesting analysts see stronger longer-term profit potential. Carvana and Revolve Stocks Trade Up, What You Need To Know
• Positive Sentiment: Despite some near-term revisions lower, Carvana’s current-year earnings outlook remains well above the market consensus, which may reinforce investor confidence in the company’s profitability trend.
• Neutral Sentiment: Short interest in Carvana surged sharply in May, with 7.8% of shares sold short and a 6.7-day short-interest ratio, indicating elevated bearish positioning that could contribute to volatility and potential short-covering moves.
• Negative Sentiment: Zacks Research trimmed its Q3 2027 and FY2027 EPS estimates slightly, which may temper enthusiasm about the pace of earnings growth in the medium term.
• Negative Sentiment: The firm also cut its Q4 2027 EPS estimate, signaling some caution around Carvana’s earnings trajectory later in the forecast period.

Carvana Stock Up 1.8%

Shares of CVNA stock traded up $1.30 during trading hours on Thursday, reaching $74.30. The company had a trading volume of 5,392,081 shares, compared to its average volume of 16,651,273. Carvana has a 12 month low of $54.46 and a 12 month high of $97.38. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The business has a fifty day simple moving average of $69.24 and a 200-day simple moving average of $74.82. The company has a market cap of $81.49 billion, a price-to-earnings ratio of 45.24, a price-to-earnings-growth ratio of 11.84 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $0.32 by $1.37. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The company had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. On average, research analysts expect that Carvana will post 1.58 earnings per share for the current fiscal year.

Carvana Company Profile

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.

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