Carvana (NYSE:CVNA) Shares Gap Up – What’s Next?

Shares of Carvana Co. (NYSE:CVNA) gapped up before the market opened on Wednesday . The stock had previously closed at $172.22, but opened at $183.25. Carvana shares last traded at $180.90, with a volume of 891,416 shares trading hands.

Analyst Ratings Changes

CVNA has been the topic of a number of research reports. Wells Fargo & Company dropped their target price on shares of Carvana from $300.00 to $275.00 and set an “overweight” rating on the stock in a report on Monday, January 6th. Bank of America raised their target price on shares of Carvana from $252.00 to $270.00 and gave the stock a “buy” rating in a report on Friday, February 21st. DA Davidson upped their target price on Carvana from $220.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday, February 20th. Wedbush set a $250.00 price target on Carvana and gave the stock a “neutral” rating in a report on Wednesday, February 19th. Finally, Robert W. Baird upped their price objective on Carvana from $200.00 to $250.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. Eight analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $265.65.

Carvana Stock Performance

The stock has a market cap of $35.32 billion, a P/E ratio of 105.52 and a beta of 3.56. The company has a debt-to-equity ratio of 3.82, a current ratio of 3.64 and a quick ratio of 2.12. The company has a fifty day moving average of $229.54 and a 200 day moving average of $213.65.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, February 19th. The company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.27. The business had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.32 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. On average, equities analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Carvana

In related news, insider Paul W. Breaux sold 1,362 shares of Carvana stock in a transaction dated Monday, February 10th. The stock was sold at an average price of $270.08, for a total value of $367,848.96. Following the transaction, the insider now owns 153,240 shares of the company’s stock, valued at approximately $41,387,059.20. This trade represents a 0.88 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Mark W. Jenkins sold 10,000 shares of the company’s stock in a transaction dated Monday, February 3rd. The shares were sold at an average price of $250.12, for a total transaction of $2,501,200.00. Following the sale, the chief financial officer now directly owns 219,962 shares of the company’s stock, valued at $55,016,895.44. This represents a 4.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 69,784 shares of company stock valued at $18,599,844. 17.12% of the stock is owned by insiders.

Institutional Investors Weigh In On Carvana

Large investors have recently made changes to their positions in the company. FMR LLC boosted its position in shares of 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 period. Vanguard Group Inc. increased its stake in Carvana by 5.6% in the 4th quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company’s stock valued at $2,323,463,000 after buying an additional 610,234 shares during the period. Lingotto Investment Management LLP lifted its position in Carvana by 1.5% in the 4th quarter. Lingotto Investment Management LLP now owns 3,987,150 shares of the company’s stock worth $810,827,000 after buying an additional 57,215 shares in the last quarter. Durable Capital Partners LP boosted its stake in shares of Carvana by 6.3% during the 4th quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company’s stock valued at $440,932,000 after buying an additional 129,246 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of Carvana by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 1,878,796 shares of the company’s stock valued at $381,592,000 after acquiring an additional 75,250 shares in the last quarter. 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.