Carvana (NYSE:CVNA) Stock Price Up 8.3% – Still a Buy?

Carvana Co. (NYSE:CVNA)’s stock price shot up 8.3% on Tuesday . The stock traded as high as $204.65 and last traded at $204.53. 1,789,699 shares were traded during trading, a decline of 78% from the average session volume of 8,038,491 shares. The stock had previously closed at $188.85.

Analyst Upgrades and Downgrades

CVNA has been the topic of a number of research analyst reports. Royal Bank of Canada upgraded shares of Carvana from a “sector perform” rating to an “outperform” rating and upped their price target for the stock from $270.00 to $280.00 in a report on Tuesday. Piper Sandler raised their price objective on Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Wedbush upped their target price on Carvana from $150.00 to $175.00 and gave the stock a “neutral” rating in a report on Monday, October 7th. Needham & Company LLC reissued a “buy” rating and set a $330.00 price target on shares of Carvana in a research report on Tuesday. Finally, JMP Securities restated a “market outperform” rating and issued a $320.00 price objective on shares of Carvana in a report on Monday, December 16th. Ten analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $237.12.

Carvana Price Performance

The stock has a 50 day moving average price of $236.34 and a two-hundred day moving average price of $181.99. The firm has a market cap of $41.98 billion, a PE ratio of 20,239.24 and a beta of 3.38. The company has a quick ratio of 2.12, a current ratio of 3.25 and a debt-to-equity ratio of 18.99.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41. The firm had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.47 billion. The business’s revenue was up 31.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.23 EPS. As a group, equities analysts expect that Carvana Co. will post 0.76 earnings per share for the current year.

Insider Buying and Selling at Carvana

In other news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm’s stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $190.47, for a total value of $19,047,000.00. Following the transaction, the insider now owns 38,258,131 shares in the company, valued at $7,287,026,211.57. This trade represents a 0.26 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Benjamin E. Huston sold 3,043 shares of the business’s stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $240.00, for a total transaction of $730,320.00. Following the transaction, the chief operating officer now owns 218,686 shares in the company, valued at $52,484,640. The trade was a 1.37 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,151,908 shares of company stock worth $237,894,285. Company insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of institutional investors have recently added to or reduced their stakes in the stock. Forum Financial Management LP increased its stake in Carvana by 3.8% during the third quarter. Forum Financial Management LP now owns 2,071 shares of the company’s stock worth $361,000 after acquiring an additional 76 shares during the last quarter. Empirical Asset Management LLC raised its position in Carvana by 2.0% in the 3rd quarter. Empirical Asset Management LLC now owns 5,109 shares of the company’s stock valued at $890,000 after purchasing an additional 100 shares in the last quarter. CIBC Asset Management Inc raised its holdings in shares of Carvana by 3.5% in the 3rd quarter. CIBC Asset Management Inc now owns 3,366 shares of the company’s stock valued at $586,000 after purchasing an additional 115 shares in the last quarter. MML Investors Services LLC raised its position in shares of Carvana by 3.0% during the 3rd quarter. MML Investors Services LLC now owns 4,172 shares of the company’s stock worth $726,000 after acquiring an additional 122 shares in the last quarter. Finally, Bleakley Financial Group LLC raised its holdings in Carvana by 6.0% during the third quarter. Bleakley Financial Group LLC now owns 2,308 shares of the company’s stock worth $402,000 after purchasing an additional 130 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Carvana Company Profile

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.