Carvana (NYSE:CVNA) Shares Gap Down – Here’s What Happened

Carvana Co. (NYSE:CVNA) gapped down before the market opened on Friday . The stock had previously closed at $199.56, but opened at $188.20. Carvana shares last traded at $190.01, with a volume of 1,823,458 shares trading hands.

Analyst Ratings Changes

CVNA has been the topic of several research reports. Bank of America increased their target price on Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, October 9th. Jefferies Financial Group lifted their price objective on Carvana from $150.00 to $185.00 and gave the company a “hold” rating in a research note on Tuesday, October 22nd. Piper Sandler increased their target price on shares of Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Wells Fargo & Company lifted their price target on shares of Carvana from $175.00 to $250.00 and gave the company an “overweight” rating in a research report on Wednesday, October 23rd. Finally, Citigroup increased their price objective on shares of Carvana from $125.00 to $195.00 and gave the stock a “neutral” rating in a research report on Thursday, October 3rd. Eleven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $229.18.

Carvana Price Performance

The company has a quick ratio of 2.12, a current ratio of 3.25 and a debt-to-equity ratio of 18.99. The company has a 50 day simple moving average of $237.18 and a 200-day simple moving average of $179.97. The stock has a market cap of $39.61 billion, a price-to-earnings ratio of 19,098.10 and a beta of 3.32.

Carvana (NYSE:CVNA) last released its quarterly earnings data on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.47 billion. The business’s revenue for the quarter was up 31.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.23 EPS. As a group, research analysts anticipate that Carvana Co. will post 0.76 EPS for the current fiscal year.

Insider Buying and Selling at Carvana

In other Carvana news, major shareholder Ernest C. Garcia II sold 100,000 shares of the business’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $180.49, for a total transaction of $18,049,000.00. Following the completion of the transaction, the insider now owns 38,658,131 shares in the company, valued at approximately $6,977,406,064.19. The trade was a 0.26 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Daniel J. Gill sold 44,000 shares of Carvana stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $259.47, for a total transaction of $11,416,680.00. Following the sale, the insider now owns 191,225 shares in the company, valued at approximately $49,617,150.75. This represents a 18.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,241,908 shares of company stock worth $253,935,785 over the last ninety days. Company insiders own 17.18% of the company’s stock.

Institutional Trading of Carvana

Several institutional investors have recently modified their holdings of the company. FMR LLC grew its position in Carvana by 90.8% in the third quarter. FMR LLC now owns 12,361,790 shares of the company’s stock worth $2,152,311,000 after buying an additional 5,882,656 shares during the last quarter. Lingotto Investment Management LLP boosted its stake in shares of Carvana by 1.4% during the 2nd quarter. Lingotto Investment Management LLP now owns 3,776,747 shares of the company’s stock worth $486,143,000 after acquiring an additional 52,833 shares in the last quarter. State Street Corp grew its holdings in shares of Carvana by 6.1% in the 3rd quarter. State Street Corp now owns 1,877,511 shares of the company’s stock worth $326,893,000 after acquiring an additional 107,610 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Carvana by 7.8% during the third quarter. Geode Capital Management LLC now owns 1,803,546 shares of the company’s stock worth $315,133,000 after purchasing an additional 131,059 shares during the period. Finally, Whale Rock Capital Management LLC purchased a new stake in shares of Carvana during the third quarter valued at $162,953,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Company Profile

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.