Carvana (NYSE:CVNA) Shares Gap Down – Here’s What Happened

Carvana Co. (NYSE:CVNA) gapped down prior to trading on Thursday . The stock had previously closed at $281.82, but opened at $264.89. Carvana shares last traded at $244.07, with a volume of 3,544,265 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on CVNA shares. Royal Bank of Canada increased their price target on shares of Carvana from $280.00 to $320.00 and gave the stock an “outperform” rating in a research note on Thursday. Piper Sandler lifted their price objective on shares of Carvana from $151.00 to $225.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Morgan Stanley upgraded shares of Carvana from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $110.00 to $260.00 in a research report on Tuesday, November 5th. Wedbush restated a “neutral” rating and set a $250.00 target price on shares of Carvana in a report on Thursday, February 6th. Finally, Evercore ISI raised their price target on Carvana from $240.00 to $245.00 and gave the company an “in-line” rating in a research report on Tuesday, December 3rd. Nine equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $265.06.

Carvana Stock Performance

The stock’s 50-day simple moving average is $234.35 and its 200 day simple moving average is $207.79. The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The company has a market capitalization of $46.33 billion, a PE ratio of 142.13 and a beta of 3.37.

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

Insider Buying and Selling at Carvana

In other Carvana news, CFO Mark W. Jenkins sold 20,000 shares of the company’s stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $275.68, for a total value of $5,513,600.00. Following the completion of the sale, the chief financial officer now directly owns 199,962 shares of the company’s stock, valued at approximately $55,125,524.16. This represents a 9.09 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ira J. Platt sold 25,000 shares of the company’s stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $244.30, for a total transaction of $6,107,500.00. Following the completion of the sale, the director now directly owns 5,227 shares of the company’s stock, valued at $1,276,956.10. The trade was a 82.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 173,629 shares of company stock worth $44,833,799 over the last 90 days. Insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Quent Capital LLC bought a new stake in Carvana in the 4th quarter valued at $28,000. Global Retirement Partners LLC increased its holdings in Carvana by 109.9% in the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after buying an additional 78 shares during the period. Rialto Wealth Management LLC bought a new stake in Carvana in the 4th quarter valued at $31,000. ORG Wealth Partners LLC bought a new stake in Carvana in the 4th quarter valued at $34,000. Finally, Capital Performance Advisors LLP bought a new stake in Carvana in the 3rd quarter valued at $40,000. 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.