Carvana (NYSE:CVNA) Shares Down 6.4% After Insider Selling

Carvana Co. (NYSE:CVNA)’s stock price was down 6.4% during trading on Friday following insider selling activity. The company traded as low as $124.11 and last traded at $124.38. Approximately 3,523,063 shares changed hands during trading, a decline of 37% from the average daily volume of 5,574,333 shares. The stock had previously closed at $132.88.

Specifically, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction dated Monday, April 1st. The stock was sold at an average price of $86.75, for a total transaction of $433,750.00. Following the transaction, the vice president now owns 62,514 shares of the company’s stock, valued at approximately $5,423,089.50. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, VP Stephen R. Palmer sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $86.75, for a total transaction of $433,750.00. Following the sale, the vice president now directly owns 62,514 shares of the company’s stock, valued at approximately $5,423,089.50. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Ernest C. Garcia II sold 75,000 shares of the firm’s stock in a transaction that occurred on Monday, May 6th. The shares were sold at an average price of $125.43, for a total transaction of $9,407,250.00. Following the completion of the transaction, the insider now directly owns 2,917,500 shares of the company’s stock, valued at approximately $365,942,025. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,801,829 shares of company stock valued at $193,562,233. Company insiders own 17.12% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on CVNA. Wedbush reissued a “neutral” rating and issued a $120.00 price objective on shares of Carvana in a research report on Wednesday. TD Cowen increased their target price on Carvana from $58.00 to $70.00 and gave the company a “hold” rating in a report on Monday, April 29th. JMP Securities lifted their price target on Carvana from $135.00 to $150.00 and gave the stock a “market outperform” rating in a report on Friday, June 7th. Wells Fargo & Company increased their price objective on Carvana from $60.00 to $77.00 and gave the company an “equal weight” rating in a report on Thursday, May 2nd. Finally, Needham & Company LLC restated a “hold” rating on shares of Carvana in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and three have assigned a buy rating to the company. According to MarketBeat, Carvana has an average rating of “Hold” and an average target price of $87.29.

Carvana Stock Down 4.7 %

The company has a market capitalization of $25.66 billion, a price-to-earnings ratio of 54.55 and a beta of 3.29. The stock has a fifty day moving average price of $106.59 and a two-hundred day moving average price of $77.57.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, May 1st. The company reported ($0.41) EPS for the quarter, beating analysts’ consensus estimates of ($0.76) by $0.35. The business had revenue of $3.06 billion during the quarter, compared to analysts’ expectations of $2.72 billion. As a group, research analysts forecast that Carvana Co. will post -0.75 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Carvana

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Blue Trust Inc. purchased a new stake in Carvana during the 4th quarter worth $29,000. Plato Investment Management Ltd bought a new position in shares of Carvana during the first quarter worth about $55,000. Parallel Advisors LLC raised its stake in Carvana by 39.0% during the fourth quarter. Parallel Advisors LLC now owns 692 shares of the company’s stock valued at $37,000 after buying an additional 194 shares in the last quarter. Tidemark LLC bought a new position in Carvana during the fourth quarter worth $50,000. Finally, Headlands Technologies LLC acquired a new stake in shares of Carvana during the fourth quarter worth $87,000. 56.71% of the stock is owned by institutional investors and hedge funds.

About Carvana

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.