BTIG Research Issues Pessimistic Forecast for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its target price decreased by equities research analysts at BTIG Research from $97.00 to $87.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. BTIG Research’s price target suggests a potential upside of 39.75% from the company’s previous close.

CVNA has been the subject of several other research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Carvana in a research report on Thursday, June 18th. Wells Fargo & Company reiterated an “overweight” rating and set a $85.00 price objective (down from $95.00) on shares of Carvana in a research note on Tuesday, July 21st. Bank of America raised their target price on shares of Carvana from $72.00 to $82.00 and gave the company a “neutral” rating in a report on Tuesday, April 21st. JPMorgan Chase & Co. boosted their target price on shares of Carvana from $91.00 to $93.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Carvana in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $85.86.

Carvana Price Performance

Shares of NYSE CVNA opened at $62.25 on Thursday. The business has a fifty day moving average price of $66.85 and a two-hundred day moving average price of $70.64. The stock has a market capitalization of $68.28 billion, a PE ratio of 34.43, a P/E/G ratio of 13.96 and a beta of 3.46. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.57. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The company had revenue of $7.38 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same period in the prior year, the firm posted $1.51 EPS. Carvana’s quarterly revenue was up 52.4% on a year-over-year basis. As a group, equities analysts predict that Carvana will post 1.61 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director J Danforth Quayle sold 14,525 shares of the stock in a transaction dated 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 transaction, the director owned 214,960 shares of the company’s stock, valued at approximately $15,047,200. This represents a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total transaction of $4,356,675.00. Following the completion of the transaction, the chief financial officer directly owned 1,029,580 shares of the company’s stock, valued at $70,361,497.20. This trade represents a 5.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 278,212 shares of company stock valued at $19,343,496 over the last ninety days. 15.19% of the stock is owned by insiders.

Institutional Investors Weigh In On Carvana

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. 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 boosted its position in Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after buying an additional 2,764,759 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Carvana by 42.9% during the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock worth $2,405,959,000 after buying an additional 1,711,144 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Carvana by 8.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock worth $7,481,081,000 after buying an additional 1,407,762 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Carvana by 55.4% during the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock worth $1,632,763,000 after buying an additional 1,382,852 shares in the last quarter. 56.71% of the stock is owned by institutional investors.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter performance, including $7.38 billion in revenue, $513 million in net income and $769 million in adjusted EBITDA. Retail unit sales increased 38%, while the company extended its streak of growth and profitability. Carvana Reports Record Profit But Cools Expectations With Cautious Outlook
• Positive Sentiment: Management highlighted continued platform expansion, inventory growth and software investments, including an artificial-intelligence customer-service agent intended to reduce service costs. Same-day delivery also expanded to the Fort Myers market. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Needham maintained a buy rating and a $120 price target, arguing that the post-earnings selloff may offer an opportunity. Citigroup, Barclays and BTIG also retained bullish ratings, although each lowered its target. Needham Says Carvana Stock Could Double as Management Lowers Guidance
• Neutral Sentiment: Some analysts continue to view strong consumer demand and Carvana’s online retail model favorably, suggesting the business remains fundamentally healthy despite the market’s negative earnings reaction.
• Negative Sentiment: Carvana’s full-year adjusted EBITDA outlook of approximately $2.7 billion to $3.0 billion, with a midpoint below Wall Street expectations, disappointed investors. The guidance overshadowed the quarterly beat and raised concerns about the pace of future earnings growth. CVNA Stock Is Dropping After a Record Quarter
• Negative Sentiment: Analysts also cited declining gross profit per unit and adjusted EBITDA margins. BNP Paribas Exane lowered its rating to neutral and cut its price target sharply, while several other firms reduced targets, indicating that valuation is harder to justify without renewed margin expansion. Carvana Profit Compression Makes This Stock Tougher To Bank On

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.