Carvana (NYSE:CVNA) Issues Quarterly Earnings Results

Carvana (NYSE:CVNA) posted its quarterly earnings results on Wednesday. The company reported $4.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $3.12, FiscalAI reports. The firm had revenue of $5.60 billion for the quarter, compared to analysts’ expectations of $5.24 billion. Carvana had a return on equity of 30.62% and a net margin of 3.44%.

Carvana Stock Up 3.1%

Shares of NYSE:CVNA traded up $11.02 during mid-day trading on Wednesday, hitting $361.96. 8,218,433 shares of the company traded hands, compared to its average volume of 4,024,999. The stock has a 50-day moving average price of $430.34 and a two-hundred day moving average price of $382.24. Carvana has a 12-month low of $148.25 and a 12-month high of $486.89. The stock has a market cap of $78.74 billion, a P/E ratio of 82.64 and a beta of 3.57. The company has a current ratio of 4.05, a quick ratio of 2.55 and a debt-to-equity ratio of 1.63.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on CVNA. JPMorgan Chase & Co. increased their target price on shares of Carvana from $490.00 to $510.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. Gordon Haskett cut their price objective on shares of Carvana from $445.00 to $435.00 and set a “hold” rating on the stock in a research report on Monday, January 5th. BTIG Research boosted their target price on Carvana from $450.00 to $535.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Stephens increased their price target on Carvana from $454.00 to $519.00 and gave the stock an “overweight” rating in a report on Friday, January 9th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $460.00 price objective on shares of Carvana in a report on Thursday, October 30th. Nineteen research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $474.27.

Insider Buying and Selling at Carvana

In other Carvana news, insider Paul W. Breaux sold 20,000 shares of Carvana stock in a transaction on Monday, December 8th. The shares were sold at an average price of $438.50, for a total transaction of $8,770,000.00. Following the transaction, the insider directly owned 69,289 shares of the company’s stock, valued at $30,383,226.50. The trade was a 22.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Benjamin E. Huston sold 40,000 shares of the stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $439.50, for a total transaction of $17,580,000.00. Following the completion of the sale, the chief operating officer owned 100,758 shares of the company’s stock, valued at approximately $44,283,141. This represents a 28.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 420,351 shares of company stock worth $179,589,049. 17.12% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CVNA. Royal Bank of Canada increased its holdings in Carvana by 40.8% in the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock worth $6,243,000 after acquiring an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after purchasing an additional 181 shares during the period. Cerity Partners LLC increased its stake in shares of Carvana by 28.8% in the second quarter. Cerity Partners LLC now owns 5,481 shares of the company’s stock worth $1,847,000 after purchasing an additional 1,226 shares in the last quarter. AXA S.A. raised its position in shares of Carvana by 340.7% in the second quarter. AXA S.A. now owns 4,253 shares of the company’s stock valued at $1,433,000 after purchasing an additional 3,288 shares during the period. Finally, NewEdge Advisors LLC raised its position in shares of Carvana by 9.1% in the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company’s stock valued at $3,334,000 after purchasing an additional 825 shares during the period. 56.71% of the stock is owned by institutional investors.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Shares are rallying into earnings after opening weaker, suggesting short-term bullish positioning and buyer interest ahead of the print. Live Analysis: Will Carvana Soar After Earnings Tonight?
• Positive Sentiment: Fund commentary and unit-growth data indicate Carvana continues to grow vehicle sales while lending fears have eased, giving a fundamental tailwind if earnings show improving margins or unit economics. Carvana Co. (CVNA) Sustains Rapid Unit Growth as Lending Fears Ease
• Neutral Sentiment: Heavy options activity and “big money” positioning signal traders are hedging for a sizable post-earnings move; this can amplify swings but doesn’t indicate direction by itself. 6CVNA : Carvana’s Options: A Look at What the Big Money is Thinking
• Neutral Sentiment: Analysts and market commentators expect a large post-earnings move and heightened volatility; traders should anticipate wider intraday ranges and possible gap moves after the release. Carvana Reports Earnings Later Today. Here’s How Much the Stock Is Expected to Move
• Neutral Sentiment: Technical commentary points to ~ $390 as a near-term resistance area and highlights the stock’s volatile run after a sharp pullback from recent highs; useful for short-term trade planning. Options Corner: CVNA’s Comeback Story
• Negative Sentiment: A new investor lawsuit investigation by Pomerantz introduces legal and reputational risk that can pressure sentiment and adds an overhang independent of earnings. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On-Behalf of Investors of Carvana Co. – CVNA
• Negative Sentiment: Shares have already suffered a steep decline in recent weeks and trade well below many Wall Street targets, raising downside risk if the quarter disappoints. Carvana (CVNA) Trading 40% Below Wall Street Targets After 25% Monthly Slide

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.