Carvana (NYSE:CVNA) Shares Gap Down – What’s Next?

Shares of Carvana Co. (NYSE:CVNA) gapped down before the market opened on Friday . The stock had previously closed at $224.06, but opened at $219.23. Carvana shares last traded at $218.62, with a volume of 170,613 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on CVNA shares. Bank of America upped their price objective on shares of Carvana from $185.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, October 9th. Wells Fargo & Company lifted their target price on shares of Carvana from $175.00 to $250.00 and gave the company an “overweight” rating in a research note on Wednesday, October 23rd. Wedbush increased their price target on shares of Carvana from $150.00 to $175.00 and gave the stock a “neutral” rating in a research note on Monday, October 7th. Piper Sandler boosted their price target on Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Finally, Robert W. Baird raised their price objective on Carvana from $160.00 to $240.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Eleven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $222.71.

Carvana Trading Down 4.0 %

The company has a quick ratio of 2.12, a current ratio of 3.25 and a debt-to-equity ratio of 18.99. The firm has a market capitalization of $44.66 billion, a price-to-earnings ratio of 21,530.53 and a beta of 3.32. The business has a 50-day moving average of $236.57 and a two-hundred day moving average of $177.76.

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

Insider Transactions at Carvana

In other Carvana news, insider Ryan S. Keeton sold 24,845 shares of the stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $247.90, for a total transaction of $6,159,075.50. Following the completion of the transaction, the insider now directly owns 151,029 shares in the company, valued at $37,440,089.10. This represents a 14.13 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the business’s stock in a transaction on Wednesday, October 2nd. The shares were sold at an average price of $174.64, for a total transaction of $17,464,000.00. Following the completion of the sale, the insider now owns 39,058,131 shares in the company, valued at $6,821,111,997.84. This represents a 0.26 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 1,541,908 shares of company stock valued at $306,473,785. Company insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

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

About Carvana

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.