Carvana (NYSE:CVNA) Trading Down 3.6% – Should You Sell?

Shares of Carvana Co. (NYSE:CVNA) dropped 3.6% during trading on Monday . The company traded as low as $430.70 and last traded at $434.2160. Approximately 2,692,933 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 3,965,755 shares. The stock had previously closed at $450.22.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on CVNA shares. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Carvana in a research report on Friday, November 21st. They issued a “buy” rating and a $395.00 target price for the company. UBS Group started coverage on Carvana in a report on Monday, December 1st. They issued a “buy” rating and a $450.00 price objective for the company. Jefferies Financial Group upped their target price on Carvana from $475.00 to $550.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Stephens restated an “overweight” rating and issued a $440.00 price target on shares of Carvana in a research note on Tuesday, September 23rd. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $460.00 price target on shares of Carvana in a research 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. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $446.09.

Carvana Price Performance

The business has a fifty day moving average of $363.36 and a two-hundred day moving average of $355.66. The company has a debt-to-equity ratio of 1.63, a quick ratio of 2.55 and a current ratio of 4.05. The firm has a market capitalization of $94.07 billion, a price-to-earnings ratio of 98.75, a price-to-earnings-growth ratio of 1.47 and a beta of 3.51.

Carvana (NYSE:CVNA) last announced its quarterly earnings results on Wednesday, October 29th. The company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.26). Carvana had a net margin of 3.44% and a return on equity of 30.62%. The business had revenue of $5.65 billion for the quarter, compared to analyst estimates of $5.04 billion. During the same period in the prior year, the business earned $0.64 EPS. The company’s revenue for the quarter was up 54.5% compared to the same quarter last year. As a group, research analysts predict that Carvana Co. will post 2.85 EPS for the current fiscal year.

Insiders Place Their Bets

In other Carvana news, insider Daniel J. Gill sold 80,000 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 value of $35,160,000.00. Following the transaction, the insider directly owned 191,106 shares of the company’s stock, valued at $83,991,087. This represents a 29.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Michael E. Maroone sold 30,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $400.34, for a total value of $12,381,715.52. Following the sale, the director owned 143,573 shares of the company’s stock, valued at approximately $57,478,014.82. This represents a 17.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 584,332 shares of company stock worth $236,216,793 in the last 90 days. Corporate insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

Institutional investors have recently modified their holdings of the business. Keel Point LLC raised its stake in Carvana by 11.8% in the 3rd quarter. Keel Point LLC now owns 860 shares of the company’s stock worth $324,000 after purchasing an additional 91 shares in the last quarter. Hudson Bay Capital Management LP increased its holdings in shares of Carvana by 201.5% during the third quarter. Hudson Bay Capital Management LP now owns 49,688 shares of the company’s stock worth $18,744,000 after purchasing an additional 33,210 shares during the period. Allworth Financial LP raised its position in shares of Carvana by 10.5% in the third quarter. Allworth Financial LP now owns 1,250 shares of the company’s stock valued at $472,000 after buying an additional 119 shares in the last quarter. Polar Asset Management Partners Inc. bought a new stake in shares of Carvana in the third quarter valued at approximately $1,924,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Carvana in the third quarter valued at approximately $1,644,000. Institutional investors own 56.71% of the company’s stock.

Carvana Company Profile

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.