Carvana (NYSE:CVNA) Trading Down 6.3% – Time to Sell?

Carvana Co. (NYSE:CVNA)’s share price was down 6.3% during trading on Wednesday . The stock traded as low as $209.55 and last traded at $207.79. Approximately 1,507,937 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 4,540,763 shares. The stock had previously closed at $221.66.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Evercore ISI reduced their price target on Carvana from $250.00 to $240.00 and set an “in-line” rating for the company in a report on Tuesday, March 11th. Citigroup raised their price objective on shares of Carvana from $277.00 to $320.00 and gave the company a “buy” rating in a research note on Friday, February 21st. Needham & Company LLC reiterated a “buy” rating and issued a $340.00 target price on shares of Carvana in a research note on Friday, March 7th. Royal Bank of Canada raised their price target on shares of Carvana from $280.00 to $320.00 and gave the company an “outperform” rating in a research report on Thursday, February 20th. Finally, Robert W. Baird upped their price objective on Carvana from $200.00 to $250.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. Six investment analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $263.88.

Carvana Stock Performance

The business’s 50-day moving average price is $228.48 and its 200-day moving average price is $216.58. The stock has a market cap of $43.44 billion, a P/E ratio of 129.82 and a beta of 3.56. The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 EPS 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 business had revenue of $3.55 billion during the quarter, compared to analysts’ expectations 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.

Insiders Place Their Bets

In related news, CFO Mark W. Jenkins sold 28,422 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $288.85, for a total transaction of $8,209,694.70. Following the completion of the sale, the chief financial officer now owns 219,962 shares in the company, valued at approximately $63,536,023.70. This trade represents a 11.44 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, March 14th. The stock was sold at an average price of $178.49, for a total value of $8,924,500.00. Following the completion of the transaction, the chief operating officer now directly owns 196,278 shares in the company, valued at approximately $35,033,660.22. This represents a 20.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 119,784 shares of company stock worth $27,524,344. Company insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

Several hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP increased its holdings in Carvana by 4.1% in the 4th quarter. Wellington Management Group LLP now owns 36,215 shares of the company’s stock valued at $7,365,000 after acquiring an additional 1,430 shares during the last quarter. California State Teachers Retirement System grew its position in shares of Carvana by 81.5% during the fourth quarter. California State Teachers Retirement System now owns 181,249 shares of the company’s stock valued at $36,859,000 after purchasing an additional 81,414 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased 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 purchasing an additional 348 shares during the last quarter. Siemens Fonds Invest GmbH bought a new position in Carvana during the fourth quarter valued at approximately $839,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Carvana during the 4th quarter valued at approximately $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.