Carvana (CVNA) Shares Gap Down Following Analyst Downgrade

Carvana Co (NYSE:CVNA)’s share price gapped down before the market opened on Tuesday after Craig Hallum lowered their price target on the stock from $48.00 to $40.00. The stock had previously closed at $46.45, but opened at $42.86. Craig Hallum currently has a hold rating on the stock. Carvana shares last traded at $38.40, with a volume of 4104721 shares trading hands.

Several other equities analysts have also recently issued reports on CVNA. Zacks Investment Research cut shares of Carvana from a “hold” rating to a “sell” rating in a research report on Thursday, November 1st. JMP Securities boosted their price target on shares of Carvana from $63.00 to $64.00 and gave the company a “market outperform” rating in a research report on Tuesday, November 13th. Barrington Research reiterated a “buy” rating on shares of Carvana in a research report on Tuesday, November 13th. Citigroup boosted their price target on shares of Carvana from $60.00 to $67.00 and gave the company an “average” rating in a research report on Thursday, August 9th. Finally, Bank of America boosted their price target on shares of Carvana from $60.00 to $72.00 and gave the company a “buy” rating in a research report on Thursday, November 8th. Five investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $58.41.

In other Carvana news, COO Benjamin E. Huston sold 13,000 shares of the company’s stock in a transaction dated Friday, November 9th. The shares were sold at an average price of $50.07, for a total value of $650,910.00. Following the sale, the chief operating officer now owns 26,233 shares in the company, valued at $1,313,486.31. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Ddfs Partnership Lp sold 253,877 shares of the company’s stock in a transaction dated Tuesday, September 11th. The stock was sold at an average price of $69.30, for a total transaction of $17,593,676.10. The disclosure for this sale can be found here. Insiders have sold 3,084,028 shares of company stock worth $179,700,231 in the last quarter. 21.41% of the stock is owned by corporate insiders.

Institutional investors and hedge funds have recently made changes to their positions in the business. Whale Rock Capital Management LLC purchased a new stake in Carvana in the second quarter worth about $35,039,000. 683 Capital Management LLC lifted its stake in shares of Carvana by 11.4% in the second quarter. 683 Capital Management LLC now owns 1,561,634 shares of the company’s stock worth $64,964,000 after buying an additional 160,294 shares in the last quarter. Fiera Capital Corp bought a new position in shares of Carvana in the second quarter worth approximately $1,082,000. Russell Investments Group Ltd. lifted its stake in shares of Carvana by 622.9% in the second quarter. Russell Investments Group Ltd. now owns 10,084 shares of the company’s stock worth $419,000 after buying an additional 8,689 shares in the last quarter. Finally, Northern Trust Corp lifted its stake in shares of Carvana by 154.0% in the second quarter. Northern Trust Corp now owns 380,552 shares of the company’s stock worth $15,831,000 after buying an additional 230,704 shares in the last quarter. Institutional investors and hedge funds own 26.61% of the company’s stock.

The company has a market capitalization of $6.24 billion, a PE ratio of -31.74 and a beta of 2.11. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.30 and a current ratio of 2.04.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, November 7th. The company reported ($0.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.37) by ($0.03). The firm had revenue of $535.00 million during the quarter, compared to the consensus estimate of $509.09 million. Carvana had a negative return on equity of 35.13% and a negative net margin of 5.01%. The company’s quarterly revenue was up 137.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.29) EPS. As a group, equities analysts expect that Carvana Co will post -1.61 earnings per share for the current fiscal year.

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About Carvana (NYSE:CVNA)

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

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