Carvana (NYSE:CVNA) Trading Down 6.6% – Should You Sell?

Carvana Co. (NYSE:CVNA)’s stock price fell 6.6% on Friday . The stock traded as low as $231.80 and last traded at $231.31. 1,913,937 shares were traded during mid-day trading, a decline of 51% from the average session volume of 3,918,422 shares. The stock had previously closed at $247.72.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on CVNA. Citigroup increased their price target on shares of Carvana from $277.00 to $320.00 and gave the stock a “buy” rating in a report on Friday. Wells Fargo & Company lowered their price objective on shares of Carvana from $300.00 to $275.00 and set an “overweight” rating for the company in a research report on Monday, January 6th. Piper Sandler increased their price objective on shares of Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. DA Davidson increased their price objective on shares of Carvana from $220.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Royal Bank of Canada increased their price objective on shares of Carvana from $280.00 to $320.00 and gave the stock an “outperform” rating in a research report on Thursday. Nine equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $265.06.

Carvana Stock Performance

The stock has a market cap of $47.13 billion, a P/E ratio of 144.98 and a beta of 3.37. 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’s 50-day moving average is $234.85 and its two-hundred day moving average is $207.18.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, February 19th. The company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.27. The business had revenue of $3.55 billion for the quarter, compared to the consensus estimate of $3.32 billion. Carvana had a net margin of 1.54% and a return on equity of 446.67%. As a group, research analysts expect that Carvana Co. will post 2.85 EPS for the current year.

Insiders Place Their Bets

In other Carvana news, insider Ryan S. Keeton sold 24,845 shares of the company’s stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $247.90, for a total transaction of $6,159,075.50. Following the sale, the insider now directly owns 151,029 shares of the company’s stock, valued at approximately $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 is available through this hyperlink. Also, insider Daniel J. Gill sold 44,000 shares of the company’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $259.47, for a total transaction of $11,416,680.00. Following the sale, the insider now directly owns 191,225 shares in the company, valued at $49,617,150.75. This trade represents a 18.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 173,629 shares of company stock worth $44,833,799 over the last 90 days. Corporate insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

Several institutional investors and hedge funds have recently modified their holdings of CVNA. Quent Capital LLC acquired a new position in shares of Carvana in the fourth quarter valued at about $28,000. Global Retirement Partners LLC grew its stake in shares of Carvana by 109.9% in the fourth quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after acquiring an additional 78 shares in the last quarter. Rialto Wealth Management LLC acquired a new position in shares of Carvana in the fourth quarter valued at about $31,000. ORG Wealth Partners LLC acquired a new position in shares of Carvana in the fourth quarter valued at about $34,000. Finally, Capital Performance Advisors LLP bought a new stake in Carvana during the third quarter worth about $40,000. 56.71% of the stock is currently owned by institutional investors and hedge funds.

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.