Carvana Target of Unusually Large Options Trading (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) was the recipient of unusually large options trading on Monday. Stock investors purchased 113,933 call options on the stock. This is an increase of 41% compared to the average daily volume of 80,752 call options.

Carvana Trading Down 4.8%

CVNA traded down $16.23 on Monday, reaching $320.39. 3,244,897 shares of the company’s stock were exchanged, compared to its average volume of 4,555,344. Carvana has a twelve month low of $148.25 and a twelve month high of $486.89. The company’s 50 day moving average is $423.03 and its 200-day moving average is $381.99. The company has a debt-to-equity ratio of 1.15, a quick ratio of 2.73 and a current ratio of 4.31. The company has a market cap of $69.70 billion, a price-to-earnings ratio of 40.08 and a beta of 3.57.

Carvana (NYSE:CVNA) last released its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The company had revenue of $5.60 billion during the quarter, compared to the consensus estimate of $5.24 billion. During the same period in the previous year, the firm earned $0.56 earnings per share. Carvana’s revenue for the quarter was up 58.0% on a year-over-year basis. Equities analysts predict that Carvana will post 2.85 earnings per share for the current year.

Insider Activity at Carvana

In other Carvana news, CFO Mark W. Jenkins sold 12,750 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $410.19, for a total value of $5,229,922.50. Following the sale, the chief financial officer owned 202,817 shares of the company’s stock, valued at $83,193,505.23. This represents a 5.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Benjamin E. Huston sold 10,000 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $411.27, for a total transaction of $4,112,700.00. Following the completion of the sale, the chief operating officer owned 98,652 shares in the company, valued at $40,572,608.04. This represents a 9.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 420,351 shares of company stock valued at $179,589,049 in the last 90 days. 16.36% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Carvana

Large investors have recently modified their holdings of the stock. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Carvana during the 4th quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. acquired a new position in Carvana during the 4th quarter worth $29,000. ORG Partners LLC increased its position in shares of Carvana by 8,700.0% in the 3rd quarter. ORG Partners LLC now owns 88 shares of the company’s stock worth $33,000 after purchasing an additional 87 shares during the last quarter. Motiv8 Investments LLC acquired a new stake in shares of Carvana in the 4th quarter valued at about $33,000. Finally, Salomon & Ludwin LLC grew its stake in Carvana by 112.5% in the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock worth $37,000 after purchasing an additional 45 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have weighed in on CVNA. Argus initiated coverage on Carvana in a report on Monday, December 15th. They set a “buy” rating and a $500.00 price objective on the stock. Jefferies Financial Group decreased their price target on Carvana from $550.00 to $485.00 and set a “buy” rating on the stock in a research note on Monday. Wedbush lowered their price target on Carvana from $500.00 to $425.00 and set an “outperform” rating for the company in a report on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $500.00 price objective on shares of Carvana in a report on Thursday. Finally, DA Davidson decreased their target price on shares of Carvana from $470.00 to $320.00 and set a “neutral” rating on the stock in a research report on Thursday. Twenty research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $440.59.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Jefferies cut its price target to $485 but maintained a “buy” rating, still implying large upside from current levels — a moderating, constructive signal for investors. Jefferies adjusts price target on Carvana to $485 from $550; maintains buy rating
• Positive Sentiment: Needham & Company reiterated its “Buy” rating on CVNA, providing continued analyst conviction despite sector volatility. Carvana’s (CVNA) “Buy” Rating Reiterated at Needham & Company LLC
• Negative Sentiment: Gordon Haskett cut its price target to $350, signaling a more conservative near-term view on Carvana’s valuation. Gordon Haskett Cuts Carvana Price Target to $350
• Negative Sentiment: Wells Fargo lowered its price target to $425, another downgrade that reduces consensus upside. Wells Fargo Cuts Carvana Price Target to $425
• Negative Sentiment: JPMorgan trimmed its target to $490 — still elevated but a downward adjustment that weighs on sentiment. JPMorgan Cuts Carvana Price Target to $490
• Negative Sentiment: Evercore reduced its price target to $390, joining peers in dialing back valuations. Evercore Cuts Carvana Price Target to $390
• Negative Sentiment: Citigroup cut its target to $465, another headline contributing to downward pressure. Citigroup Cuts Carvana Price Target to $465
• Negative Sentiment: Bank of America lowered its price target to $400, reducing analyst-derived valuation support. Bank of America Cuts Carvana Price Target to $400
• Negative Sentiment: Wedbush trimmed its target to $425, adding to the cluster of cuts this session. Wedbush Cuts Carvana Price Target to $425

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.