Carvana (NYSE:CVNA) Sets New 52-Week High – Should You Buy?

Carvana Co. (NYSE:CVNA)’s stock price hit a new 52-week high during trading on Friday . The company traded as high as $259.96 and last traded at $259.33, with a volume of 1092533 shares traded. The stock had previously closed at $248.38.

Wall Street Analysts Forecast Growth

CVNA has been the subject of a number of research reports. Royal Bank of Canada upgraded Carvana to a “sector perform” rating and boosted their price target for the company from $166.00 to $170.00 in a report on Monday, August 19th. Bank of America increased their price target on Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, October 9th. Robert W. Baird lifted their price objective on Carvana from $160.00 to $240.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. TD Cowen upped their price objective on shares of Carvana from $110.00 to $148.00 and gave the stock a “hold” rating in a research note on Thursday, August 1st. Finally, Needham & Company LLC raised their target price on shares of Carvana from $200.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, October 31st. Eleven analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $217.71.

Carvana Price Performance

The stock has a fifty day moving average of $203.96 and a 200 day moving average of $154.47. The company has a debt-to-equity ratio of 18.99, a current ratio of 3.25 and a quick ratio of 2.12. The stock has a market cap of $53.85 billion, a price-to-earnings ratio of 25,961.96 and a beta of 3.37.

Carvana (NYSE:CVNA) last released its quarterly earnings data on Wednesday, October 30th. The company reported $0.64 earnings per share 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 firm’s revenue was up 31.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.23 EPS. On average, analysts expect that Carvana Co. will post 0.76 EPS for the current fiscal year.

Insider Buying and Selling at Carvana

In other Carvana news, CFO Mark W. Jenkins sold 208,495 shares of the company’s stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $224.43, for a total value of $46,792,532.85. Following the completion of the transaction, the chief financial officer now owns 90,732 shares in the company, valued at approximately $20,362,982.76. This represents a 69.68 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm’s stock in a transaction dated Wednesday, August 28th. The shares were sold at an average price of $155.69, for a total value of $15,569,000.00. Following the sale, the insider now owns 41,233,131 shares in the company, valued at $6,419,586,165.39. This trade represents a 0.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,327,249 shares of company stock worth $421,876,322. Insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

A number of institutional investors have recently added to or reduced their stakes in CVNA. Forum Financial Management LP lifted its holdings in Carvana by 3.8% during the third quarter. Forum Financial Management LP now owns 2,071 shares of the company’s stock valued at $361,000 after purchasing an additional 76 shares in the last quarter. Empirical Asset Management LLC lifted its stake in Carvana by 2.0% in the 3rd quarter. Empirical Asset Management LLC now owns 5,109 shares of the company’s stock valued at $890,000 after buying an additional 100 shares in the last quarter. CIBC Asset Management Inc boosted its holdings in Carvana by 3.5% in the 3rd quarter. CIBC Asset Management Inc now owns 3,366 shares of the company’s stock worth $586,000 after buying an additional 115 shares during the last quarter. MML Investors Services LLC increased its stake in Carvana by 3.0% during the 3rd quarter. MML Investors Services LLC now owns 4,172 shares of the company’s stock worth $726,000 after buying an additional 122 shares in the last quarter. Finally, Bleakley Financial Group LLC raised its holdings in shares of Carvana by 6.0% during the third quarter. Bleakley Financial Group LLC now owns 2,308 shares of the company’s stock valued at $402,000 after acquiring an additional 130 shares during 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.