Carvana (NYSE:CVNA) Trading Down 4.3% – Here’s What Happened

Carvana Co. (NYSE:CVNA) traded down 4.3% during mid-day trading on Tuesday . The company traded as low as $199.05 and last traded at $201.57. 508,086 shares traded hands during trading, a decline of 89% from the average session volume of 4,454,414 shares. The stock had previously closed at $210.55.

Analysts Set New Price Targets

A number of research firms have weighed in on CVNA. JMP Securities reiterated a “market outperform” rating and issued a $320.00 target price on shares of Carvana in a research note on Monday, December 16th. Bank of America increased their price objective on Carvana from $185.00 to $210.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Wedbush boosted their target price on Carvana from $150.00 to $175.00 and gave the company a “neutral” rating in a research note on Monday, October 7th. Wells Fargo & Company lifted their price objective on Carvana from $175.00 to $250.00 and gave the stock an “overweight” rating in a report on Wednesday, October 23rd. Finally, Needham & Company LLC upped their price objective on shares of Carvana from $300.00 to $330.00 and gave the company a “buy” rating in a report on Monday, December 9th. Eleven equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $222.71.

Carvana Trading Down 3.4 %

The stock’s 50 day simple moving average is $237.19 and its 200 day simple moving average is $179.84. The firm has a market cap of $42.22 billion, a PE ratio of 20,356.36 and a beta of 3.32. The company has a debt-to-equity ratio of 18.99, a quick ratio of 2.12 and a current ratio of 3.25.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, October 30th. The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.41. The company had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.47 billion. During the same quarter last year, the firm posted $0.23 earnings per share. The firm’s revenue was up 31.8% on a year-over-year basis. On average, sell-side analysts forecast that Carvana Co. will post 0.76 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Mark W. Jenkins sold 208,495 shares of the company’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $224.43, for a total value of $46,792,532.85. Following the completion of the sale, the chief financial officer now owns 90,732 shares of the company’s stock, valued at approximately $20,362,982.76. This represents a 69.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of Carvana stock in a transaction on Friday, October 4th. The stock was sold at an average price of $179.06, for a total transaction of $17,906,000.00. Following the completion of the transaction, the insider now owns 38,858,131 shares in the company, valued at approximately $6,957,936,936.86. The trade was a 0.26 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,341,908 shares of company stock worth $271,841,785. 17.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Carvana

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Forum Financial Management LP boosted its holdings in shares of 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 purchasing an additional 76 shares during the period. Empirical Asset Management LLC grew its position in shares of Carvana by 2.0% in the 3rd quarter. Empirical Asset Management LLC now owns 5,109 shares of the company’s stock worth $890,000 after buying an additional 100 shares during the last quarter. CIBC Asset Management Inc grew its position 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 worth $586,000 after buying an additional 115 shares during the last quarter. MML Investors Services LLC increased its stake in shares of Carvana by 3.0% during the third quarter. MML Investors Services LLC now owns 4,172 shares of the company’s stock valued at $726,000 after buying an additional 122 shares during the period. Finally, Bleakley Financial Group LLC lifted its stake in Carvana by 6.0% in the third quarter. Bleakley Financial Group LLC now owns 2,308 shares of the company’s stock worth $402,000 after acquiring an additional 130 shares during the period. 56.71% of the stock is currently 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.