Carvana Co. (NYSE:CVNA) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of Carvana Co. (NYSE:CVNA) have been given an average rating of “Moderate Buy” by the twenty-four research firms that are currently covering the firm, MarketBeat reports. Seven equities research analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $84.1364.

A number of analysts recently weighed in on the stock. BNP Paribas Exane dropped their price objective on shares of Carvana from $86.00 to $69.00 and set a “hold” rating on the stock in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $80.00 price objective on shares of Carvana in a research report on Friday, July 31st. UBS Group restated a “buy” rating and issued a $83.00 target price on shares of Carvana in a research report on Friday, July 31st. Jefferies Financial Group decreased their target price 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. Finally, Morgan Stanley set a $90.00 price target on shares of Carvana and gave the company an “overweight” rating in a research note on Thursday, July 30th.

Carvana Price Performance

Shares of CVNA opened at $74.14 on Friday. Carvana has a 12 month low of $54.46 and a 12 month high of $97.38. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.33. The stock has a fifty day moving average price of $67.95 and a 200 day moving average price of $68.38. The company has a market cap of $81.58 billion, a P/E ratio of 41.00, a PEG ratio of 2.69 and a beta of 3.46.

Carvana (NYSE:CVNA) last posted its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share (EPS) for the quarter, beating 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 period last year, the business posted $1.51 earnings per share. The firm’s quarterly revenue was up 52.4% compared to the same quarter last year. On average, research analysts forecast that Carvana will post 1.68 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Mark W. Jenkins sold 63,750 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total value 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 represents a 5.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the sale, the director owned 186,470 shares in the company, valued at approximately $12,648,260.10. This represents a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 420,897 shares of company stock worth $28,777,664. 15.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of CVNA. Ascentis Independent Advisors acquired a new position in shares of Carvana during the first quarter valued at $26,000. Farmers & Merchants Investments Inc. acquired a new stake in Carvana in the fourth quarter worth about $29,000. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in Carvana by 152.6% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock worth $30,000 after purchasing an additional 58 shares during the period. Transamerica Financial Advisors LLC grew its position in Carvana by 558.0% in the 2nd quarter. Transamerica Financial Advisors LLC now owns 454 shares of the company’s stock valued at $30,000 after buying an additional 385 shares in the last quarter. Finally, Motiv8 Investments LLC bought a new position in Carvana in the 4th quarter valued at about $33,000. 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.