Zacks Research Issues Positive Estimate for Carvana Earnings

Key Points

• Zacks Research raised its Q1 2027 EPS estimate for Carvana to $0.48 from $0.46, signaling a more positive outlook on the company’s future earnings. It also issued longer-term estimates, including $2.64 EPS for FY2028.
• Wall Street sentiment remains generally constructive, with Carvana carrying an average “Moderate Buy” rating and a consensus price target of $93.14. Several firms recently reaffirmed or raised their targets, including Deutsche Bank, Morgan Stanley, and JPMorgan.
• Carvana recently posted stronger-than-expected quarterly results, reporting $1.69 EPS and $6.43 billion in revenue, both above estimates. Despite that, insiders have sold shares recently, including the CFO and a director.

Carvana Co. (NYSE:CVNA - Free Report) - Stock analysts at Zacks Research upped their Q1 2027 EPS estimates for Carvana in a research note issued on Monday, May 25th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.48 per share for the quarter, up from their prior estimate of $0.46. The consensus estimate for Carvana's current full-year earnings is $1.57 per share. Zacks Research also issued estimates for Carvana's Q4 2027 earnings at $0.36 EPS, Q1 2028 earnings at $0.65 EPS and FY2028 earnings at $2.64 EPS.

A number of other research firms have also recently weighed in on CVNA. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $107.40 target price on shares of Carvana in a research note on Thursday, April 30th. Gordon Haskett boosted their target price on shares of Carvana from $67.00 to $85.00 and gave the stock a "hold" rating 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. Morgan Stanley boosted their price objective on shares of Carvana from $90.00 to $102.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Carvana from $91.00 to $93.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $93.14.

Carvana Stock Performance

NYSE CVNA opened at $70.27 on Wednesday. The firm's fifty day moving average price is $68.99 and its two-hundred day moving average price is $74.74. The stock has a market cap of $77.07 billion, a PE ratio of 42.74, a PEG ratio of 11.60 and a beta of 3.55. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09.

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, topping analysts' consensus estimates of $0.32 by $1.37. The firm had revenue of $6.43 billion for the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%.

Institutional Trading of Carvana

A number of institutional investors have recently bought and sold shares of CVNA. Royal Bank of Canada boosted its position in Carvana by 40.8% during the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after acquiring an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock valued at $53,000 after acquiring an additional 181 shares during the last quarter. Cerity Partners LLC boosted its position in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock valued at $1,847,000 after acquiring an additional 1,226 shares during the last quarter. AXA S.A. boosted its position in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after acquiring an additional 3,288 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its position in Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after acquiring an additional 825 shares during the last quarter. Institutional investors own 56.71% of the company's stock.

Insider Buying and Selling at Carvana

In other Carvana news, Director J Danforth Quayle sold 14,500 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $61.99, for a total transaction of $898,913.00. Following the sale, the director owned 209,565 shares of the company's stock, valued at approximately $12,991,772.61. This represents a 6.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 sale, the chief financial officer directly owned 1,050,635 shares in the company, valued at $81,359,073.13. This trade represents a 5.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 281,205 shares of company stock valued at $19,495,895. 15.19% of the stock is owned by corporate insiders.

About Carvana

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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