Carvana (NYSE:CVNA) Raised to Outperform at Royal Bank of Canada

Carvana (NYSE:CVNA) was upgraded by equities research analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a report released on Tuesday, MarketBeat Ratings reports. The firm currently has a $280.00 price target on the stock, up from their previous price target of $270.00. Royal Bank of Canada’s price target would indicate a potential upside of 42.13% from the company’s current price.

Several other equities research analysts also recently weighed in on CVNA. Jefferies Financial Group upped their price objective on shares of Carvana from $150.00 to $185.00 and gave the stock a “hold” rating in a report on Tuesday, October 22nd. Wedbush upped their price target on shares of Carvana from $150.00 to $175.00 and gave the stock a “neutral” rating in a research note on Monday, October 7th. Citigroup raised their price objective on shares of Carvana from $125.00 to $195.00 and gave the company a “neutral” rating in a research note on Thursday, October 3rd. Morgan Stanley raised Carvana from an “underweight” rating to an “equal weight” rating and boosted their target price for the stock from $110.00 to $260.00 in a report on Tuesday, November 5th. Finally, JMP Securities reaffirmed a “market outperform” rating and set a $320.00 price target on shares of Carvana in a research note on Monday, December 16th. Nine research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Carvana has a consensus rating of “Moderate Buy” and a consensus price target of $241.94.

Carvana Stock Performance

CVNA opened at $197.00 on Tuesday. The company has a current ratio of 3.25, a quick ratio of 2.12 and a debt-to-equity ratio of 18.99. The business’s 50 day moving average is $235.93 and its 200-day moving average is $182.69. The stock has a market cap of $40.90 billion, a PE ratio of 19,719.72 and a beta of 3.38. Carvana has a twelve month low of $40.21 and a twelve month high of $268.34.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, October 30th. The company reported $0.64 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.41. The business had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.47 billion. During the same period in the previous year, the firm earned $0.23 EPS. The firm’s revenue was up 31.8% on a year-over-year basis. On average, analysts predict that Carvana will post 0.76 earnings per share for the current year.

Insider Activity at Carvana

In other Carvana news, major shareholder Ernest C. Garcia II sold 100,000 shares of the business’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $190.47, for a total transaction of $19,047,000.00. Following the sale, the insider now directly owns 38,258,131 shares of the company’s stock, valued at $7,287,026,211.57. The trade was a 0.26 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Mark W. Jenkins sold 10,000 shares of the firm’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $200.75, for a total value of $2,007,500.00. Following the completion of the sale, the chief financial officer now directly owns 189,097 shares of the company’s stock, valued at approximately $37,961,222.75. This trade represents a 5.02 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,051,908 shares of company stock worth $218,824,285 in the last quarter. 17.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Carvana

Several hedge funds have recently bought and sold shares of CVNA. Eagle Asset Management Inc. purchased a new position in Carvana during the 3rd quarter valued at about $50,531,000. Central Pacific Bank Trust Division purchased a new position in Carvana during the fourth quarter valued at approximately $609,000. Driehaus Capital Management LLC increased its stake in Carvana by 124.9% in the 2nd quarter. Driehaus Capital Management LLC now owns 581,787 shares of the company’s stock valued at $74,888,000 after buying an additional 323,153 shares during the period. Swiss National Bank increased its stake in Carvana by 6.9% in the 3rd quarter. Swiss National Bank now owns 207,900 shares of the company’s stock valued at $36,197,000 after buying an additional 13,400 shares during the period. Finally, Integrated Advisors Network LLC boosted its stake in shares of Carvana by 89.2% during the 3rd quarter. Integrated Advisors Network LLC now owns 53,004 shares of the company’s stock valued at $9,229,000 after buying an additional 24,996 shares during the period. 56.71% of the stock is owned by hedge funds and other institutional investors.

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.