Carvana (NYSE:CVNA) Shares Gap Up on Strong Earnings

Shares of Carvana Co. (NYSE:CVNA) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $207.31, but opened at $238.20. Carvana shares last traded at $245.22, with a volume of 2,048,787 shares trading hands.

The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.23 by $0.41. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.47 billion. The business’s revenue was up 31.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.23 EPS.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CVNA. Needham & Company LLC increased their price target on Carvana from $200.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday. Stephens initiated coverage on shares of Carvana in a research note on Thursday, September 12th. They issued an “overweight” rating and a $190.00 price target for the company. Evercore ISI increased their price objective on shares of Carvana from $186.00 to $190.00 and gave the company an “in-line” rating in a research report on Wednesday. Jefferies Financial Group lifted their price objective on shares of Carvana from $150.00 to $185.00 and gave the stock a “hold” rating in a research report on Tuesday, October 22nd. Finally, JPMorgan Chase & Co. increased their target price on Carvana from $230.00 to $300.00 and gave the company an “overweight” rating in a report on Thursday. One analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, Carvana currently has a consensus rating of “Hold” and an average price target of $208.88.

Insider Buying and Selling at Carvana

In other news, major shareholder Ernest C. Garcia II sold 75,000 shares of the stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $131.19, for a total transaction of $9,839,250.00. Following the completion of the sale, the insider now owns 1,090,814 shares in the company, valued at approximately $143,103,888.66. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other news, major shareholder Ernest C. Garcia II sold 75,000 shares of the company’s stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $131.19, for a total transaction of $9,839,250.00. Following the completion of the sale, the insider now owns 1,090,814 shares in the company, valued at $143,103,888.66. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Daniel J. Gill sold 41,163 shares of Carvana stock in a transaction on Thursday, October 24th. The shares were sold at an average price of $200.11, for a total transaction of $8,237,127.93. Following the completion of the transaction, the insider now owns 283,287 shares in the company, valued at approximately $56,688,561.57. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,705,891 shares of company stock worth $455,601,985. 17.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Carvana

A number of institutional investors have recently added to or reduced their stakes in CVNA. PNC Financial Services Group Inc. grew its holdings in Carvana by 63.7% during the fourth quarter. PNC Financial Services Group Inc. now owns 2,481 shares of the company’s stock worth $131,000 after acquiring an additional 965 shares during the period. Principal Financial Group Inc. increased its holdings in shares of Carvana by 9.2% in the 1st quarter. Principal Financial Group Inc. now owns 12,702 shares of the company’s stock valued at $1,117,000 after purchasing an additional 1,068 shares in the last quarter. HB Wealth Management LLC purchased a new stake in Carvana during the first quarter worth about $244,000. Sequoia Financial Advisors LLC grew its position in Carvana by 11.9% during the first quarter. Sequoia Financial Advisors LLC now owns 4,687 shares of the company’s stock worth $412,000 after buying an additional 500 shares during the period. Finally, FORA Capital LLC increased its holdings in Carvana by 109.4% in the first quarter. FORA Capital LLC now owns 84,969 shares of the company’s stock valued at $7,470,000 after buying an additional 44,392 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Carvana Stock Performance

The company has a market capitalization of $50.10 billion, a price-to-earnings ratio of 108.47 and a beta of 3.44. The company has a debt-to-equity ratio of 47.20, a quick ratio of 2.02 and a current ratio of 3.11. The stock’s 50-day moving average price is $172.95 and its 200-day moving average price is $136.66.

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.