Carvana Co. (NYSE:CVNA) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of Carvana Co. (NYSE:CVNA) have been given a consensus rating of “Moderate Buy” by the twenty-three analysts that are presently covering the stock, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $85.8571.

A number of equities analysts have recently weighed in on the stock. BTIG Research cut their price objective on shares of Carvana from $97.00 to $87.00 and set a “buy” rating for the company in a research report on Thursday. DA Davidson set a $67.00 target price on shares of Carvana in a research note on Thursday. Wells Fargo & Company set a $80.00 price target on Carvana and gave the stock an “overweight” rating in a research note on Thursday. Barclays decreased their price objective on Carvana from $94.00 to $93.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Zacks Research lowered Carvana from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 15th.

Insider Activity

In other Carvana news, insider Thomas Taira sold 5,597 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $67.15, for a total transaction of $375,838.55. Following the completion of the sale, the insider directly owned 315,075 shares in the company, valued at $21,157,286.25. This represents a 1.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total value of $4,356,675.00. Following the sale, the chief financial officer owned 1,029,580 shares of the company’s stock, valued at $70,361,497.20. The trade was a 5.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 278,212 shares of company stock valued at $19,343,496 in the last ninety days. 15.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. First Horizon Corp boosted its holdings in Carvana by 6.4% in the 4th quarter. First Horizon Corp now owns 418 shares of the company’s stock worth $176,000 after acquiring an additional 25 shares during the period. Finivi Inc. grew its stake in shares of Carvana by 4.6% during the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock valued at $295,000 after acquiring an additional 31 shares in the last quarter. HB Wealth Management LLC boosted its stake in shares of Carvana by 1.0% during the 4th quarter. HB Wealth Management LLC now owns 3,190 shares of the company’s stock valued at $1,346,000 after buying an additional 31 shares during the last quarter. Gilder Gagnon Howe & Co. LLC increased its stake in shares of Carvana by 1.7% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company’s stock worth $622,000 after buying an additional 31 shares during the last quarter. Finally, Insigneo Advisory Services LLC raised its holdings in Carvana by 4.8% in the fourth quarter. Insigneo Advisory Services LLC now owns 696 shares of the company’s stock valued at $294,000 after acquiring an additional 32 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

Carvana Stock Down 0.2%

CVNA opened at $62.25 on Monday. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94. The firm has a market cap of $68.28 billion, a P/E ratio of 34.43, a PEG ratio of 2.30 and a beta of 3.46. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38. The business’s fifty day simple moving average is $66.85 and its 200 day simple moving average is $70.64.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The firm had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the previous year, the company posted $1.51 EPS. The firm’s revenue for the quarter was up 52.4% on a year-over-year basis. As a group, equities research analysts anticipate that Carvana will post 1.65 EPS for the current fiscal year.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter performance, including $7.38 billion in revenue, $513 million in net income and $769 million in adjusted EBITDA. Retail unit sales increased 38%, while the company extended its streak of growth and profitability. Carvana Reports Record Profit But Cools Expectations With Cautious Outlook
• Positive Sentiment: Management highlighted continued platform expansion, inventory growth and software investments, including an artificial-intelligence customer-service agent intended to reduce service costs. Same-day delivery also expanded to the Fort Myers market. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Needham maintained a buy rating and a $120 price target, arguing that the post-earnings selloff may offer an opportunity. Citigroup, Barclays and BTIG also retained bullish ratings, although each lowered its target. Needham Says Carvana Stock Could Double as Management Lowers Guidance
• Neutral Sentiment: Some analysts continue to view strong consumer demand and Carvana’s online retail model favorably, suggesting the business remains fundamentally healthy despite the market’s negative earnings reaction.
• Negative Sentiment: Carvana’s full-year adjusted EBITDA outlook of approximately $2.7 billion to $3.0 billion, with a midpoint below Wall Street expectations, disappointed investors. The guidance overshadowed the quarterly beat and raised concerns about the pace of future earnings growth. CVNA Stock Is Dropping After a Record Quarter
• Negative Sentiment: Analysts also cited declining gross profit per unit and adjusted EBITDA margins. BNP Paribas Exane lowered its rating to neutral and cut its price target sharply, while several other firms reduced targets, indicating that valuation is harder to justify without renewed margin expansion. Carvana Profit Compression Makes This Stock Tougher To Bank On

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.