Carvana (NYSE:CVNA) Shares Down 6.9% Following Insider Selling

Carvana Co. (NYSE:CVNA)’s share price traded down 6.9% during trading on Wednesday following insider selling activity. The company traded as low as $65.38 and last traded at $65.2290. 1,355,765 shares changed hands during trading, a decline of 91% from the average session volume of 15,836,649 shares. The stock had previously closed at $70.04.

Specifically, Director Ira J. Platt sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the transaction, the director owned 186,470 shares of the company’s stock, valued at $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director owned 214,960 shares in the company, valued at $15,047,200. This represents a 6.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

CVNA has been the topic of a number of recent analyst reports. UBS Group reissued a “buy” rating and set a $104.00 target price (up from $97.00) on shares of Carvana in a report on Thursday, April 30th. Citizens Jmp increased their price objective on shares of Carvana from $92.00 to $103.00 and gave the company a “market outperform” rating in a research report on Friday, May 1st. William Blair reiterated an “outperform” rating on shares of Carvana in a research note on Friday, March 13th. Gordon Haskett raised their price objective on shares of Carvana from $67.00 to $85.00 and gave the stock a “hold” rating in a research report on Thursday, April 30th. Finally, BNP Paribas Exane upped their target price on Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $93.14.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new-car sales, with a Dallas location serving as a test site for its “playground” showroom model and online purchase flow. The move could broaden Carvana’s addressable market and strengthen the growth narrative. Carvana’s new vehicle strategy turns dealership into ‘playground,’ test-drive center with sales all online
• Positive Sentiment: Wall Street commentary remains constructive, with recent coverage noting analyst price targets implying roughly 37% upside and continued earnings estimate support. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Recent earnings momentum also supports the bullish case, as Carvana previously beat expectations on both revenue and EPS, reinforcing confidence in its operating execution. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not necessarily indicate a broader negative signal. SEC Form 4 filing for Ira J. Platt

Carvana Price Performance

The firm has a market cap of $71.82 billion, a P/E ratio of 39.63, a PEG ratio of 11.63 and a beta of 3.45. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The company’s 50-day moving average is $71.47 and its two-hundred day moving average is $75.25.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, beating the consensus estimate of $0.32 by $1.37. The company had revenue of $6.43 billion during the quarter, compared to analysts’ expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Sell-side analysts anticipate that Carvana Co. will post 1.58 EPS for the current fiscal year.

Hedge Funds Weigh In On Carvana

Several hedge funds and other institutional investors have recently modified their holdings of CVNA. Vanguard Group Inc. lifted its stake in Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock valued at $7,082,804,000 after purchasing an additional 3,328,115 shares during the last quarter. State Street Corp increased its holdings in shares of Carvana by 93.7% during the fourth quarter. State Street Corp now owns 5,714,779 shares of the company’s stock worth $2,411,751,000 after buying an additional 2,764,759 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of Carvana by 42.9% in the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after acquiring an additional 1,711,144 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after acquiring an additional 1,407,762 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Carvana by 55.4% during the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after acquiring an additional 1,382,852 shares in the last quarter. Institutional investors own 56.71% of the company’s stock.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.