Carvana (NYSE:CVNA) Shares Gap Up – Still a Buy?

Carvana Co. (NYSE:CVNA) shares gapped up before the market opened on Thursday . The stock had previously closed at $176.09, but opened at $180.47. Carvana shares last traded at $189.28, with a volume of 1,083,337 shares trading hands.

Analysts Set New Price Targets

A number of research analysts recently weighed in on CVNA shares. Robert W. Baird lifted their target price on shares of Carvana from $200.00 to $250.00 and gave the company a “neutral” rating in a research note on Thursday, February 20th. Citigroup lifted their target price on shares of Carvana from $277.00 to $320.00 and gave the company a “buy” rating in a research note on Friday, February 21st. William Blair restated an “outperform” rating on shares of Carvana in a research note on Thursday, February 20th. Bank of America reduced their price target on shares of Carvana from $270.00 to $220.00 and set a “buy” rating on the stock in a report on Friday, March 14th. Finally, Evercore ISI reduced their price target on shares of Carvana from $250.00 to $240.00 and set an “in-line” rating on the stock in a report on Tuesday, March 11th. Seven investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to MarketBeat.com, Carvana presently has a consensus rating of “Moderate Buy” and a consensus target price of $262.71.

Carvana Stock Performance

The company has a current ratio of 3.64, a quick ratio of 2.12 and a debt-to-equity ratio of 3.82. The business’s 50 day moving average is $227.57 and its 200 day moving average is $214.47. The stock has a market capitalization of $40.80 billion, a PE ratio of 121.90 and a beta of 3.56.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, topping 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 firm had revenue of $3.55 billion during the quarter, compared to analysts’ expectations of $3.32 billion. On average, equities research analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Carvana news, CFO Mark W. Jenkins sold 20,000 shares of the business’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 $55,125,524.16. The trade was a 9.09 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction dated Friday, March 14th. The shares were sold at an average price of $178.49, for a total transaction of $8,924,500.00. Following the completion of the sale, the chief operating officer now directly owns 196,278 shares of the company’s stock, valued at approximately $35,033,660.22. This trade represents a 20.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 119,784 shares of company stock valued at $27,524,344. Company insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

Several large investors have recently added to or reduced their stakes in CVNA. Empowered Funds LLC purchased a new stake in Carvana in the 3rd quarter valued at about $494,000. First Horizon Advisors Inc. lifted its position in shares of Carvana by 363.0% in the 3rd quarter. First Horizon Advisors Inc. now owns 250 shares of the company’s stock worth $44,000 after purchasing an additional 196 shares during the period. Intech Investment Management LLC purchased a new stake in shares of Carvana in the 3rd quarter worth approximately $2,496,000. Eagle Asset Management Inc. purchased a new stake in shares of Carvana in the 3rd quarter worth approximately $50,531,000. Finally, Cerity Partners LLC lifted its position in shares of Carvana by 112.8% in the 3rd quarter. Cerity Partners LLC now owns 4,215 shares of the company’s stock worth $734,000 after purchasing an additional 2,234 shares during the period. 56.71% of the stock is owned by hedge funds and other institutional investors.

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.