Stephen Palmer Sells 5,000 Shares of Carvana (NYSE:CVNA) Stock

Key Points

• Carvana VP Stephen Palmer sold 5,000 shares at an average price of $64.49, generating $322,450. The pre-arranged Rule 10b5-1 transaction reduced his ownership by 3.52%, leaving him with 136,909 shares.
• Carvana shares rose 2.7% to $67.91, while the company reported quarterly revenue of $7.38 billion—up 52.4% year over year—and EPS of $0.42, beating analyst expectations.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $84.14, despite several firms recently adjusting their targets.

Carvana Co. (NYSE:CVNA - Get Free Report) VP Stephen Palmer sold 5,000 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $64.49, for a total transaction of $322,450.00. Following the transaction, the vice president owned 136,909 shares of the company's stock, valued at approximately $8,829,261.41. The trade was a 3.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carvana Trading Up 2.7%

NYSE:CVNA traded up $1.78 during trading hours on Tuesday, hitting $67.91. 7,785,858 shares of the stock were exchanged, compared to its average volume of 14,964,482. The company's 50 day moving average is $66.81 and its two-hundred day moving average is $70.45. The company has a market capitalization of $74.49 billion, a P/E ratio of 37.56, a price-to-earnings-growth ratio of 2.30 and a beta of 3.46. Carvana Co. has a twelve month low of $54.46 and a twelve month high of $97.38. 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 issued its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company had revenue of $7.38 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same quarter last year, the firm earned $1.51 EPS. The company's revenue for the quarter was up 52.4% on a year-over-year basis. On average, sell-side analysts anticipate that Carvana Co. will post 1.65 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have weighed in on CVNA. Hovde Group lifted their target price on Carvana from $39.50 to $48.00 and gave the stock a "market perform" rating in a report on Tuesday. BTIG Research cut their price objective on Carvana from $97.00 to $87.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Morgan Stanley set a $90.00 target price on Carvana and gave the stock an "overweight" rating in a research note on Thursday, July 30th. Bank of America raised their target price on shares of Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a report on Tuesday, April 21st. Finally, Citigroup cut their price target on shares of Carvana from $93.00 to $90.00 and set a "buy" rating on the stock in a research note on Friday. One 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 MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $84.14.

Institutional Trading of Carvana

A number of large investors have recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Carvana during the 4th quarter worth approximately $29,000. Farmers & Merchants Investments Inc. bought a new stake in shares of Carvana during the 4th quarter worth about $29,000. Motiv8 Investments LLC acquired a new position in Carvana in the 4th quarter valued at about $33,000. Ascentis Independent Advisors bought a new position in Carvana in the 1st quarter valued at about $26,000. Finally, Salomon & Ludwin LLC lifted its position in Carvana by 112.5% during the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock worth $37,000 after acquiring an additional 45 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

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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