Carvana Co. (NYSE:CVNA) Sees Large Growth in Short Interest

Carvana Co. (NYSE:CVNA) was the recipient of a large increase in short interest during the month of December. As of December 31st, there was short interest totalling 13,400,000 shares, an increase of 7.7% from the December 15th total of 12,440,000 shares. Based on an average daily trading volume, of 3,270,000 shares, the days-to-cover ratio is currently 4.1 days.

Carvana Trading Down 0.6 %

Carvana stock traded down $1.33 during mid-day trading on Monday, reaching $230.59. 3,102,589 shares of the company traded hands, compared to its average volume of 3,796,350. The company has a debt-to-equity ratio of 18.99, a current ratio of 3.25 and a quick ratio of 2.12. The firm has a market capitalization of $47.88 billion, a price-to-earnings ratio of 23,082.38 and a beta of 3.38. Carvana has a 52-week low of $40.21 and a 52-week high of $268.34. The firm’s 50 day moving average price is $231.78 and its 200 day moving average price is $187.07.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, October 30th. The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41. The business had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.47 billion. During the same quarter last year, the company earned $0.23 earnings per share. Carvana’s quarterly revenue was up 31.8% compared to the same quarter last year. On average, analysts anticipate that Carvana will post 0.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Carvana news, CFO Mark W. Jenkins sold 10,000 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $200.75, for a total transaction of $2,007,500.00. Following the sale, the chief financial officer now directly owns 189,097 shares of the company’s stock, valued at $37,961,222.75. This trade represents a 5.02 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Benjamin E. Huston sold 3,043 shares of the company’s stock in a transaction that occurred on Thursday, October 31st. The shares were sold at an average price of $240.00, for a total transaction of $730,320.00. Following the transaction, the chief operating officer now directly owns 218,686 shares in the company, valued at $52,484,640. The trade was a 1.37 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 551,908 shares of company stock valued at $123,000,285. Corporate insiders own 17.18% of the company’s stock.

Hedge Funds Weigh In On Carvana

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CVNA. ORG Wealth Partners LLC purchased a new position in Carvana during the fourth quarter worth $34,000. Sugarloaf Wealth Management LLC bought a new stake in Carvana in the third quarter valued at $32,000. Versant Capital Management Inc bought a new stake in Carvana in the fourth quarter valued at $42,000. Capital Performance Advisors LLP bought a new stake in Carvana in the third quarter valued at $40,000. Finally, First Horizon Advisors Inc. lifted its stake in Carvana by 363.0% in the third quarter. First Horizon Advisors Inc. now owns 250 shares of the company’s stock valued at $44,000 after buying an additional 196 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on CVNA. Needham & Company LLC reaffirmed a “buy” rating and set a $330.00 price target on shares of Carvana in a research note on Tuesday, January 7th. Bank of America increased their target price on Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, October 9th. Jefferies Financial Group boosted their price objective on Carvana from $150.00 to $185.00 and gave the company a “hold” rating in a research report on Tuesday, October 22nd. Robert W. Baird boosted their target price on Carvana from $160.00 to $240.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Finally, JMP Securities restated a “market outperform” rating and set a $320.00 target price on shares of Carvana in a report on Monday, December 16th. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $241.94.

Carvana Company Profile

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.