Zacks Research Has Bearish Forecast for Carvana Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2027 EPS estimate for Carvana to $0.57 from $0.58, while still keeping a Strong-Buy rating on the stock.
• Wall Street remains mostly bullish on Carvana overall, with several analysts maintaining buy/overweight views and a consensus rating of Moderate Buy plus an average price target of $93.14.
• Carvana’s latest quarterly results were well above expectations, with EPS of $1.69 versus the $0.32 consensus and revenue of $6.43 billion versus $6.12 billion estimated, even as the stock traded lower around $67.37.

Carvana Co. (NYSE:CVNA - Free Report) - Stock analysts at Zacks Research dropped their Q2 2027 earnings estimates for shares of Carvana in a research note issued on Tuesday, June 9th. Zacks Research analyst Team now expects that the company will post earnings of $0.57 per share for the quarter, down from their prior forecast of $0.58. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Carvana's current full-year earnings is $1.58 per share.

Other equities research analysts have also recently issued research reports about the stock. Morgan Stanley boosted their target price on shares of Carvana from $90.00 to $102.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Weiss Ratings lowered shares of Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, March 24th. Bank of America boosted their price target on shares of Carvana from $72.00 to $82.00 and gave the company a "neutral" rating in a research 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 company an "overweight" rating in a research report on Thursday, April 30th. Finally, Wedbush reduced their price target on shares of Carvana from $100.00 to $85.00 and set an "outperform" rating for the company in a research report on Thursday, February 19th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $93.14.

Carvana Trading Down 3.2%

Shares of CVNA stock opened at $67.37 on Thursday. The company's fifty day simple moving average is $70.98 and its two-hundred day simple moving average is $75.18. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. Carvana has a 1 year low of $54.46 and a 1 year high of $97.38. The stock has a market capitalization of $73.89 billion, a price-to-earnings ratio of 40.98, a PEG ratio of 11.75 and a beta of 3.45.

Carvana (NYSE:CVNA - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) 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 business had revenue of $6.43 billion for the quarter, compared to analysts' expectations of $6.12 billion.

Insider Activity

In other news, VP Stephen R. Palmer sold 5,000 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $70.42, for a total transaction of $352,100.00. Following the completion of the transaction, the vice president directly owned 152,955 shares in the company, valued at $10,771,091.10. The trade was a 3.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 18,850 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $68.20, for a total transaction of $1,285,570.00. Following the transaction, the insider owned 292,820 shares of the company's stock, valued at $19,970,324. This trade represents a 6.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 386,287 shares of company stock valued at $27,022,696 over the last 90 days. Company insiders own 15.19% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ascentis Independent Advisors purchased a new position in Carvana in the first quarter worth $26,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Carvana in the fourth quarter worth $29,000. Farmers & Merchants Investments Inc. purchased a new position in Carvana in the fourth quarter worth $29,000. Annis Gardner Whiting Capital Advisors LLC grew its position in Carvana by 152.6% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock worth $30,000 after acquiring an additional 58 shares in the last quarter. Finally, Motiv8 Investments LLC purchased a new position in Carvana in the fourth quarter worth $33,000. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research upgraded Carvana (CVNA) from Hold to Strong-Buy, which can support investor confidence. The firm also raised multiple forward EPS estimates, including FY2027 and FY2028, suggesting expectations for continued earnings growth. Carvana suffers a larger drop than the general market: key insights
• Positive Sentiment: ADESA, Carvana’s wholesale auto auctions subsidiary, launched ADESA Timed, expanding its digital auction platform. This reinforces Carvana’s push into digital wholesale infrastructure and could be viewed as a long-term operational positive. ADESA Expands Digital Auction Platform with ADESA Timed
• Positive Sentiment: Analyst coverage remains broadly favorable, with Wall Street articles highlighting CVNA as a buy candidate, which may help offset near-term selling pressure. Wall Street Analysts See Carvana as a Buy: Should You Invest?
• Neutral Sentiment: Carvana remains in the spotlight following its recent 5-for-1 stock split, which improved accessibility for retail investors, but the split itself is more of a trading/attention catalyst than a direct business driver. Is Now the Time to Buy Carvana Stock After Its 5-for-1 Split?
• Neutral Sentiment: Insider selling by Thomas Taira was disclosed, but it was made under a pre-arranged 10b5-1 plan and does not necessarily signal a change in the company’s outlook. Insider Selling: Carvana insider sells 5,597 shares of stock
• Negative Sentiment: Despite the supportive analyst news, CVNA still traded lower as investors appeared focused on short-term weakness and profit-taking after a strong run, with recent commentary also noting profitability concerns in prior coverage. Carvana slid as profitability fell short of expectations

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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