Carvana (NYSE:CVNA) Stock Price Down 4.3% – Here’s Why

Shares of Carvana Co. (NYSE:CVNA) dropped 4.3% during trading on Tuesday . The company traded as low as $199.05 and last traded at $201.57. Approximately 508,086 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 4,454,414 shares. The stock had previously closed at $210.55.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. JMP Securities reaffirmed a “market outperform” rating and set a $320.00 price target on shares of Carvana in a report on Monday, December 16th. Wells Fargo & Company boosted their target price on shares of Carvana from $175.00 to $250.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 23rd. Wedbush raised their price objective on Carvana from $150.00 to $175.00 and gave the company a “neutral” rating in a report on Monday, October 7th. Evercore ISI upped their target price on Carvana from $240.00 to $245.00 and gave the stock an “in-line” rating in a report on Tuesday, December 3rd. Finally, Piper Sandler lifted their price target on Carvana from $151.00 to $225.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Eleven analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $222.71.

Carvana Stock 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 firm has a market capitalization of $42.22 billion, a P/E ratio of 20,356.36 and a beta of 3.32. The company’s 50 day moving average is $237.19 and its 200-day moving average is $179.84.

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

Insider Transactions at Carvana

In related news, CFO Mark W. Jenkins sold 208,495 shares of Carvana stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $224.43, for a total transaction of $46,792,532.85. Following the transaction, the chief financial officer now owns 90,732 shares of the company’s stock, valued at $20,362,982.76. The trade was a 69.68 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the stock in a transaction on Friday, October 4th. The shares were sold at an average price of $179.06, for a total value of $17,906,000.00. Following the completion of the sale, the insider now directly owns 38,858,131 shares of the company’s stock, valued at $6,957,936,936.86. The trade was a 0.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,341,908 shares of company stock valued at $271,841,785 over the last ninety days. 17.18% of the stock is owned by company insiders.

Institutional Trading of Carvana

Several institutional investors have recently made changes to their positions in the company. FMR LLC boosted its holdings in Carvana by 90.8% during the third quarter. FMR LLC now owns 12,361,790 shares of the company’s stock worth $2,152,311,000 after purchasing an additional 5,882,656 shares during the last quarter. Whale Rock Capital Management LLC bought a new position in shares of Carvana during the 3rd quarter worth approximately $162,953,000. Sylebra Capital LLC purchased a new position in shares of Carvana in the 2nd quarter worth approximately $67,686,000. Lord Abbett & CO. LLC grew its holdings in shares of Carvana by 1,454.1% in the third quarter. Lord Abbett & CO. LLC now owns 538,473 shares of the company’s stock valued at $93,754,000 after acquiring an additional 503,824 shares in the last quarter. Finally, Senator Investment Group LP purchased a new stake in shares of Carvana during the second quarter valued at approximately $63,767,000. Institutional investors 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.