Michael Maroone Buys 25,000 Shares of Carvana (NYSE:CVNA) Stock

Carvana Co. (NYSE:CVNA) Director Michael Maroone bought 25,000 shares of the business’s stock in a transaction on Friday, July 31st. The shares were acquired at an average cost of $61.80 per share, for a total transaction of $1,545,000.00. Following the purchase, the director directly owned 168,573 shares in the company, valued at $10,417,811.40. This represents a 17.41% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

Carvana Trading Up 2.1%

Shares of CVNA stock opened at $69.47 on Thursday. Carvana Co. has a 1 year low of $54.46 and a 1 year high of $97.38. The firm has a market capitalization of $76.20 billion, a PE ratio of 38.42, a price-to-earnings-growth ratio of 2.51 and a beta of 3.46. The stock has a fifty day moving average of $66.70 and a two-hundred day moving average of $70.11. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.03. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The company had revenue of $7.38 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same period last year, the company earned $1.51 earnings per share. The company’s quarterly revenue was up 52.4% compared to the same quarter last year. As a group, research analysts expect that Carvana Co. will post 1.65 EPS for the current year.

Key Stories Impacting 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.

Analysts Set New Price Targets

A number of analysts have commented on CVNA shares. JPMorgan Chase & Co. boosted their price target on shares of Carvana from $91.00 to $93.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th. Citigroup lowered their price objective on shares of Carvana from $93.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. Hovde Group boosted their target price on Carvana from $39.50 to $48.00 and gave the stock a “market perform” rating in a report on Tuesday. Argus dropped their target price on Carvana from $500.00 to $100.00 in a report on Monday, May 11th. Finally, Stephens upped their target price on Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, Carvana currently has an average rating of “Moderate Buy” and an average target price of $84.14.

Hedge Funds Weigh In On Carvana

Several large investors have recently made changes to their positions in the business. Ascentis Independent Advisors acquired a new position in shares of Carvana in the 1st quarter worth approximately $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Carvana during the fourth quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. bought a new stake in Carvana during the fourth quarter worth approximately $29,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in Carvana by 152.6% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock worth $30,000 after buying an additional 58 shares in the last quarter. Finally, Motiv8 Investments LLC bought a new stake in Carvana during the fourth quarter worth approximately $33,000. Institutional investors own 56.71% of the company’s stock.

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.