Carvana (NYSE:CVNA) Shares Up 2.6% – What’s Next?

Carvana Co. (NYSE:CVNA)’s share price shot up 2.6% on Monday . The company traded as high as $208.32 and last traded at $209.75. 1,519,575 shares traded hands during trading, a decline of 66% from the average session volume of 4,513,710 shares. The stock had previously closed at $204.41.

Analysts Set New Price Targets

A number of equities analysts have recently commented on CVNA shares. Wells Fargo & Company lowered their price target on Carvana from $300.00 to $275.00 and set an “overweight” rating for the company in a report on Monday, January 6th. Morgan Stanley upgraded shares of Carvana from an “underweight” rating to an “overweight” rating in a research note on Monday. Needham & Company LLC reissued a “buy” rating and issued a $340.00 price objective on shares of Carvana in a research note on Friday, March 7th. JPMorgan Chase & Co. lowered their price target on shares of Carvana from $365.00 to $325.00 and set an “overweight” rating for the company in a report on Thursday, March 27th. Finally, Evercore ISI dropped their target price on Carvana from $250.00 to $240.00 and set an “in-line” rating for the company in a research report on Tuesday, March 11th. Six analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to MarketBeat, Carvana has an average rating of “Moderate Buy” and an average target price of $261.53.

Carvana Price Performance

The stock has a market cap of $47.84 billion, a P/E ratio of 142.94 and a beta of 3.56. The business’s 50 day moving average price is $226.42 and its two-hundred day moving average price is $219.06. The company has a current ratio of 3.64, a quick ratio of 2.12 and a debt-to-equity ratio of 3.82.

Carvana (NYSE:CVNA) last posted its earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.27. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The firm had revenue of $3.55 billion for the quarter, compared to the consensus estimate of $3.32 billion. As a group, sell-side analysts expect that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Benjamin E. Huston sold 50,000 shares of the firm’s stock in a transaction on Monday, March 24th. The stock was sold at an average price of $210.35, for a total transaction of $10,517,500.00. Following the completion of the transaction, the chief operating officer now directly owns 146,278 shares in the company, valued at $30,769,577.30. This trade represents a 25.47 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Mark W. Jenkins sold 10,000 shares of the stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $200.75, for a total transaction of $2,007,500.00. Following the sale, the chief financial officer now directly owns 189,097 shares in the company, valued at $37,961,222.75. This trade represents a 5.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 197,377 shares of company stock worth $44,251,096. Corporate insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

Institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP lifted its holdings in shares of Carvana by 4.1% during the fourth quarter. Wellington Management Group LLP now owns 36,215 shares of the company’s stock valued at $7,365,000 after purchasing an additional 1,430 shares in the last quarter. California State Teachers Retirement System lifted its holdings in shares of Carvana by 81.5% during the 4th quarter. California State Teachers Retirement System now owns 181,249 shares of the company’s stock valued at $36,859,000 after buying an additional 81,414 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Carvana by 16.1% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 2,513 shares of the company’s stock worth $511,000 after acquiring an additional 348 shares during the period. Siemens Fonds Invest GmbH bought a new stake in shares of Carvana in the fourth quarter worth $839,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Carvana in the fourth quarter valued at about $36,527,000. 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.