Carvana (NYSE:CVNA) Trading Down 4.3% – Should You Sell?

Carvana Co. (NYSE:CVNA) shares dropped 4.3% during trading on Tuesday . The stock traded as low as $199.05 and last traded at $201.57. Approximately 508,086 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 4,454,414 shares. The stock had previously closed at $210.55.

Wall Street Analysts Forecast Growth

CVNA has been the topic of a number of analyst reports. JPMorgan Chase & Co. boosted their price objective on shares of Carvana from $230.00 to $300.00 and gave the company an “overweight” rating in a research report on Thursday, October 31st. Piper Sandler raised their price target on Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Needham & Company LLC upped their price objective on Carvana from $300.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, December 9th. Bank of America raised their price target on shares of Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $320.00 target price on shares of Carvana in a research report on Monday, December 16th. Eleven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, Carvana currently has an average rating of “Hold” and a consensus target price of $222.71.

Carvana Price Performance

The company has a debt-to-equity ratio of 18.99, a quick ratio of 2.12 and a current ratio of 3.25. The stock has a 50 day moving average of $236.95 and a 200-day moving average of $178.97. The company has a market cap of $42.32 billion, a PE ratio of 20,403.40 and a beta of 3.32.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41. The firm had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.47 billion. During the same period last year, the firm earned $0.23 EPS. The company’s revenue for the quarter was up 31.8% compared to the same quarter last year. Equities analysts predict that Carvana Co. will post 0.76 earnings per share for the current year.

Insider Transactions at Carvana

In other news, CFO Mark W. Jenkins sold 208,495 shares of the firm’s stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $224.43, for a total transaction of $46,792,532.85. Following the sale, the chief financial officer now owns 90,732 shares of the company’s stock, valued at $20,362,982.76. This trade represents a 69.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the business’s stock in a transaction that occurred on Friday, October 4th. The shares were sold at an average price of $179.06, for a total value of $17,906,000.00. Following the completion of the sale, the insider now owns 38,858,131 shares of the company’s stock, valued at $6,957,936,936.86. This trade represents a 0.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,441,908 shares of company stock worth $289,305,785 over the last 90 days. 17.12% of the stock is currently owned by company insiders.

Institutional Trading of Carvana

Institutional investors have recently made changes to their positions in the company. Sugarloaf Wealth Management LLC purchased a new position in shares of Carvana during the 3rd quarter worth $32,000. Capital Performance Advisors LLP acquired a new position in shares of Carvana in the third quarter worth $40,000. First Horizon Advisors Inc. increased its holdings in Carvana by 363.0% during the 3rd quarter. First Horizon Advisors Inc. now owns 250 shares of the company’s stock worth $44,000 after purchasing an additional 196 shares during the period. Benjamin F. Edwards & Company Inc. purchased a new stake in shares of Carvana during the second quarter worth approximately $51,000. Finally, nVerses Capital LLC acquired a new stake in shares of Carvana in the 2nd quarter valued at $77,000. 56.71% of the stock is 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.