Carvana (NYSE:CVNA) Shares Down 6.7% – Here’s Why

Carvana Co. (NYSE:CVNA) shares fell 6.7% on Monday. The stock traded as low as $60.70 and last traded at $60.6950. 5,979,886 shares traded hands during trading, a decline of 56% from the average session volume of 13,457,734 shares. The stock had previously closed at $65.06.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on CVNA shares. Jefferies Financial Group reduced their price target on shares of Carvana from $95.00 to $90.00 and set a “buy” rating for the company in a research report on Tuesday, July 14th. Citigroup reaffirmed a “market outperform” rating on shares of Carvana in a research note on Monday, August 31st. Citizens Jmp reduced their price objective on Carvana from $103.00 to $83.00 and set a “market outperform” rating for the company in a report on Thursday, July 30th. Hovde Group boosted their target price on Carvana from $39.50 to $48.00 and gave the stock a “market perform” rating in a research report on Tuesday, August 4th. Finally, UBS Group reissued a “buy” rating and issued a $83.00 price objective on shares of Carvana in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $84.14.

Carvana Price Performance

The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94. The stock has a market cap of $66.64 billion, a PE ratio of 33.52, a price-to-earnings-growth ratio of 1.87 and a beta of 3.49. The company’s fifty day moving average is $69.01 and its 200 day moving average is $68.46.

Carvana (NYSE:CVNA) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $6.90 billion. During the same quarter in the previous year, the firm posted $1.51 earnings per share. The firm’s quarterly revenue was up 52.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Carvana Co. will post 1.68 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Thomas Taira sold 16,789 shares of the company’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $70.58, for a total value of $1,184,967.62. Following the completion of the transaction, the insider directly owned 366,987 shares in the company, valued at approximately $25,901,942.46. This represents a 4.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen R. Palmer sold 5,000 shares of Carvana stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $71.55, for a total transaction of $357,750.00. Following the sale, the vice president directly owned 128,886 shares in the company, valued at $9,221,793.30. This trade represents a 3.73% 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 have sold 402,564 shares of company stock valued at $27,689,555 over the last three months. Company insiders own 15.19% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Sands Capital Management LLC lifted its holdings in Carvana by 44.4% in the fourth quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock worth $1,030,798,000 after acquiring an additional 751,019 shares during the last quarter. Capricorn Fund Managers Ltd bought a new position in shares of Carvana during the first quarter valued at approximately $29,866,000. Saudi Central Bank grew its holdings in shares of Carvana by 806.1% during the second quarter. Saudi Central Bank now owns 45,043 shares of the company’s stock valued at $2,965,000 after purchasing an additional 40,072 shares during the last quarter. Gavilan Investment Partners LLC raised its position in shares of Carvana by 24.6% during the 4th quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company’s stock worth $36,294,000 after purchasing an additional 17,000 shares during the period. Finally, Hsbc Holdings PLC lifted its holdings in shares of Carvana by 239.6% in the 4th quarter. Hsbc Holdings PLC now owns 221,727 shares of the company’s stock worth $93,748,000 after purchasing an additional 156,430 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Carvana Company Profile

Carvana Co (NYSE: CVNA) is an online used-car retailer that enables consumers to research, purchase, finance and sell vehicles through its website and mobile platform. The company offers a selection of used cars, trucks and SUVs, with vehicle listings that generally include photographs, pricing and vehicle-history information.

Customers can complete much of the vehicle-buying process online, including applying for financing, arranging trade-ins and scheduling vehicle pickup or delivery.