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

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

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on CVNA. Stephens reaffirmed an “overweight” rating and set a $300.00 price objective on shares of Carvana in a research report on Thursday, February 6th. Morgan Stanley raised shares of Carvana from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $110.00 to $260.00 in a research report on Tuesday, November 5th. Wedbush reaffirmed a “neutral” rating and set a $250.00 price objective on shares of Carvana in a research report on Thursday, February 6th. Bank of America raised their price objective on shares of Carvana from $252.00 to $270.00 and gave the stock a “buy” rating in a research report on Friday. Finally, JMP Securities reissued a “market outperform” rating and issued a $320.00 price target on shares of Carvana in a research report on Monday, December 16th. Nine research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $265.06.

Carvana Stock Performance

The stock has a market capitalization of $47.13 billion, a PE ratio of 144.98 and a beta of 3.37. The business has a 50 day moving average price of $234.85 and a 200 day moving average price of $207.18. The company has a debt-to-equity ratio of 18.99, a current ratio of 3.25 and a quick ratio of 2.12.

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

Insider Activity

In related news, insider Ryan S. Keeton sold 24,845 shares of the firm’s stock in a transaction that occurred 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 sale, the insider now directly owns 151,029 shares of the company’s stock, valued at approximately $37,440,089.10. This trade represents a 14.13 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Daniel J. Gill sold 44,000 shares of the business’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $259.47, for a total value of $11,416,680.00. Following the transaction, the insider now owns 191,225 shares in the company, valued at approximately $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 a total of 173,629 shares of company stock valued at $44,833,799 over the last ninety days. 17.12% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quent Capital LLC purchased a new position in Carvana during the 4th quarter worth $28,000. Global Retirement Partners LLC grew its stake in Carvana by 109.9% during the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after purchasing an additional 78 shares during the last quarter. Rialto Wealth Management LLC purchased a new stake in Carvana during the 4th quarter valued at about $31,000. ORG Wealth Partners LLC purchased a new stake in Carvana during the 4th quarter valued at about $34,000. Finally, Versant Capital Management Inc purchased a new stake in Carvana during the 4th quarter valued at about $42,000. 56.71% of the stock is currently owned by hedge funds and other 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.