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Weiss Ratings Reiterates Hold (C-) Rating for Carvana (NYSE:CVNA)

Carvana logo with Retail/Wholesale background

Key Points

  • Weiss Ratings has reiterated a "hold (C-)" rating for Carvana (NYSE: CVNA), indicating a cautious outlook on the company's stock.
  • Several analysts have recently upgraded their target prices for Carvana, with Royal Bank of Canada raising its target from $400 to $460, reflecting increased confidence in the company's performance.
  • Carvana reported strong quarterly earnings, with $1.28 EPS surpassing expectations and revenue increasing by 41.9% year-over-year, contributing to an average analyst rating of "Moderate Buy."
  • MarketBeat previews top five stocks to own in November.

Carvana (NYSE:CVNA - Get Free Report)'s stock had its "hold (c-)" rating reiterated by research analysts at Weiss Ratings in a report released on Tuesday,Weiss Ratings reports.

Several other analysts have also issued reports on CVNA. Royal Bank Of Canada increased their target price on Carvana from $400.00 to $460.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. BTIG Research reaffirmed a "buy" rating and issued a $450.00 price objective on shares of Carvana in a research note on Friday. Bank of America raised their price objective on Carvana from $375.00 to $425.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Evercore ISI raised their price objective on Carvana from $365.00 to $370.00 and gave the company an "in-line" rating in a research note on Tuesday, August 12th. Finally, Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price for the company in a research report on Friday, July 25th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $407.44.

View Our Latest Stock Analysis on Carvana

Carvana Stock Performance

NYSE CVNA traded up $0.65 on Tuesday, reaching $338.93. The stock had a trading volume of 792,474 shares, compared to its average volume of 3,828,375. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58. The firm has a fifty day moving average of $364.73 and a two-hundred day moving average of $317.04. Carvana has a 1-year low of $148.25 and a 1-year high of $413.33. The company has a market cap of $72.94 billion, a P/E ratio of 84.93, a price-to-earnings-growth ratio of 1.07 and a beta of 3.55.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%.The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.54 billion. During the same period in the prior year, the firm posted ($0.05) EPS. The company's revenue for the quarter was up 41.9% on a year-over-year basis. On average, equities research analysts anticipate that Carvana will post 2.85 EPS for the current year.

Insider Transactions at Carvana

In other Carvana news, COO Benjamin E. Huston sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $389.27, for a total value of $3,892,700.00. Following the completion of the sale, the chief operating officer owned 103,197 shares of the company's stock, valued at approximately $40,171,496.19. This trade represents a 8.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Ernest C. Garcia III sold 2,880 shares of Carvana stock in a transaction that occurred on Thursday, October 9th. The shares were sold at an average price of $355.19, for a total value of $1,022,947.20. Following the transaction, the chief executive officer directly owned 350,000 shares in the company, valued at approximately $124,316,500. The trade was a 0.82% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,838,292 shares of company stock valued at $664,602,807. Company insiders own 16.36% of the company's stock.

Institutional Trading of Carvana

Hedge funds have recently made changes to their positions in the company. Hilltop National Bank bought a new stake in shares of Carvana in the second quarter valued at $25,000. Brooklyn Investment Group raised its stake in shares of Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock valued at $29,000 after purchasing an additional 125 shares during the period. N.E.W. Advisory Services LLC purchased a new position in Carvana during the first quarter worth about $33,000. SJS Investment Consulting Inc. boosted its holdings in shares of Carvana by 960.0% in the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock worth $36,000 after purchasing an additional 96 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in shares of Carvana in the 2nd quarter worth about $38,000. 56.71% of the stock is currently owned by institutional investors.

About Carvana

(Get Free Report)

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.

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Analyst Recommendations for Carvana (NYSE:CVNA)

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