Zacks Research Analysts Boost Earnings Estimates for Carvana

Key Points

• Zacks Research raised its FY2026 earnings estimate for Carvana to $1.51 per share from $1.25, reflecting a more optimistic outlook for the company’s profitability. The consensus estimate remains slightly higher at $1.57 per share.
• Carvana’s latest quarterly results beat expectations by a wide margin, reporting $1.69 EPS versus the $0.32 consensus and revenue of $6.43 billion versus $6.12 billion expected. The company also posted a 6.40% net margin and 41.46% return on equity.
• Wall Street sentiment remains broadly positive, with several analysts lifting price targets and the stock holding a “Moderate Buy” consensus rating. The average price target is currently $93.14, while multiple firms, including Wells Fargo and Needham, recently raised their targets.

Carvana Co. (NYSE:CVNA - Free Report) - Research analysts at Zacks Research increased their FY2026 earnings estimates for Carvana in a research report issued to clients and investors on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the company will post earnings of $1.51 per share for the year, up from their prior estimate of $1.25. The consensus estimate for Carvana's current full-year earnings is $1.57 per share.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data 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 net margin of 6.40% and a return on equity of 41.46%. The firm had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion.

Several other research analysts have also recently commented on the stock. BNP Paribas Exane boosted their price target on shares of Carvana from $77.60 to $85.80 in a report on Thursday, April 30th. Bank of America boosted their price target on shares of Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a report on Tuesday, April 21st. Wells Fargo & Company boosted their price target on shares of Carvana from $85.00 to $95.00 and gave the stock an "overweight" rating in a report on Thursday, April 30th. Needham & Company LLC boosted their price target on shares of Carvana from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Finally, Citizens Jmp boosted their price target on shares of Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a report on Friday, May 1st. 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's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $93.14.

Carvana Trading Up 0.1%

NYSE CVNA opened at $67.22 on Monday. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38. The stock has a market capitalization of $73.73 billion, a PE ratio of 40.89, a price-to-earnings-growth ratio of 11.41 and a beta of 3.55. The firm has a 50 day moving average of $75.27 and a two-hundred day moving average of $77.06.

Insiders Place Their Bets

In other news, insider Thomas Taira sold 18,850 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $68.20, for a total value of $1,285,570.00. Following the completion of the transaction, the insider owned 292,820 shares in the company, valued at approximately $19,970,324. This represents a 6.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the company's stock in a transaction 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 completion of the transaction, the chief financial officer owned 1,050,635 shares of the company's stock, valued at approximately $81,359,073.13. The trade was a 5.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 281,205 shares of company stock worth $19,495,895. 15.19% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Ascentis Independent Advisors acquired a new position in shares of Carvana in the 1st quarter valued at $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Carvana in the 4th quarter valued at $29,000. Farmers & Merchants Investments Inc. acquired a new position in shares of Carvana in the 4th quarter valued at $29,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in shares of Carvana by 152.6% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock valued at $30,000 after buying an additional 58 shares in the last quarter. Finally, Motiv8 Investments LLC acquired a new position in shares of Carvana in the 4th quarter valued at $33,000. Institutional investors and hedge funds own 56.71% of the company's stock.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research raised its EPS estimates for multiple Carvana periods, including Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, Q1 2028, FY2027, and FY2028, suggesting stronger expected earnings power ahead.
• Positive Sentiment: Barclays kept an Overweight rating on Carvana and lifted its price target to $93 from $475 on a split-adjusted basis, citing solid retail volumes post-split. Article Title
• Neutral Sentiment: Another recent write-up asked whether Wall Street is bullish or bearish on Carvana, reflecting ongoing debate over the stock’s valuation and upside after its large move this year. Article Title
• Negative Sentiment: A separate market piece noted Carvana shares were among stocks falling, indicating some near-term selling pressure and profit-taking despite the favorable analyst revisions. Article Title

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.