Benjamin Huston Sells 50,000 Shares of Carvana (NYSE:CVNA) Stock

Carvana Co. (NYSE:CVNA) COO Benjamin Huston sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $64.50, for a total value of $3,225,000.00. Following the transaction, the chief operating officer owned 535,709 shares of the company’s stock, valued at approximately $34,553,230.50. This trade represents a 8.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carvana Price Performance

Shares of NYSE:CVNA opened at $69.47 on Thursday. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.33. Carvana Co. has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a market capitalization of $76.20 billion, a P/E ratio of 38.42, a P/E/G ratio of 2.51 and a beta of 3.46. The firm’s 50 day simple moving average is $66.70 and its two-hundred day simple moving average is $70.11.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.03. The firm had revenue of $7.38 billion during the quarter, compared to analysts’ expectations of $6.90 billion. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company’s revenue for the quarter was up 52.4% compared to the same quarter last year. During the same period in the prior year, the company posted $1.51 earnings per share. Research analysts expect that Carvana Co. will post 1.65 EPS for the current fiscal year.

Hedge Funds Weigh In On Carvana

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Carvana during the 4th quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. purchased a new stake in shares of Carvana during the 4th quarter worth approximately $29,000. Motiv8 Investments LLC purchased a new stake in shares of Carvana during the 4th quarter worth approximately $33,000. Ascentis Independent Advisors bought a new position in shares of Carvana during the 1st quarter valued at approximately $26,000. Finally, Salomon & Ludwin LLC boosted its position in shares of Carvana by 112.5% during the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after acquiring an additional 45 shares during the last quarter. 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: Carvana’s second-quarter revenue increased 52% year over year to $7.38 billion, exceeding the $6.90 billion consensus estimate. Earnings per share of $0.42 also topped expectations of $0.39. Record retail unit volume and firm pricing supported the results. Carvana Q2 earnings article
• Positive Sentiment: Adjusted EBITDA grew despite Carvana investing in expansion, reinforcing the company’s growth story and likely helping support the stock. Analysts currently expect full-year EPS of approximately $1.65.
• Positive Sentiment: Director Michael E. Maroone bought 25,000 shares for about $1.55 million, increasing his direct stake by 17.4%. The purchase may signal confidence in the company’s long-term prospects.
• Neutral Sentiment: Chief Financial Officer Mark Jenkins is scheduled to present at the J.P. Morgan Automotive Conference on Aug. 12. The event could provide additional updates on demand, expansion plans and margins. J.P. Morgan Automotive Conference announcement
• Negative Sentiment: Carvana’s growth investments are pressuring margins, and the CEO warned that rising gasoline prices could further weigh on profitability by affecting consumer demand and vehicle economics.
• Negative Sentiment: Hovde Group raised its price target from $39.50 to $48 but maintained a “market perform” rating, implying substantial downside from recent trading levels and highlighting valuation concerns.
• Negative Sentiment: Several executives sold shares, including COO Benjamin Huston, CFO Mark Jenkins and VP Stephen Palmer. The transactions were conducted under pre-arranged Rule 10b5-1 plans, reducing their significance as a discretionary bearish signal, but they may still weigh on sentiment.

Analyst Upgrades and Downgrades

CVNA has been the topic of a number of recent analyst reports. Citizens Jmp decreased their price target on Carvana from $103.00 to $83.00 and set a “market outperform” rating on the stock in a report on Thursday, July 30th. Stephens upped their price objective on Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $80.00 target price on shares of Carvana in a research note on Friday, July 31st. Jefferies Financial Group lowered their price target on Carvana from $95.00 to $90.00 and set a “buy” rating on the stock in a report on Tuesday, July 14th. Finally, Zacks Research downgraded Carvana from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, Carvana currently has an average rating of “Moderate Buy” and an average price target of $84.14.

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.