Carvana (NYSE:CVNA) Shares Gap Up – What’s Next?

Carvana Co. (NYSE:CVNA) gapped up before the market opened on Thursday. The stock had previously closed at $59.05, but opened at $65.28. Carvana shares last traded at $68.8110, with a volume of 3,873,086 shares.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Record revenue and vehicle sales: Third-quarter revenue reached $8.04 billion, up 42.4% year over year and above the $7.71 billion analyst estimate. Retail units sold rose nearly 40% to approximately 217,385, signaling strong demand for used vehicles. Carvana Surges as Record Sales Overshadow Earnings Miss
• Positive Sentiment: Improving financial position: Management highlighted positive free cash flow and net debt at its best level in nearly five years. The company also reported quarterly net income of about $289 million, supporting the view that its turnaround and scale strategy are progressing. Carvana Continues to Improve
• Positive Sentiment: Long-term growth ambitions: Carvana reiterated targets of 3 million annual retail units and a 12.5% operating margin by 2030–2035, while emphasizing greater focus on GAAP profitability and cash generation. Carvana Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst remains bullish despite target cut: Needham lowered its price target from $120 to $100 but maintained a “buy” rating, leaving substantial implied upside based on the cited price. The reduction suggests expectations have become more conservative even as the analyst remains positive. Needham Analyst Ratings
• Negative Sentiment: EPS and margin pressure: Adjusted earnings were $0.39 per share, below consensus estimates ranging from $0.44 to $0.47 and down from $1.03 a year earlier. Lower gross profit per unit and reduced GPU profits remain risks to the company’s profitability narrative. Carvana Misses Q3 Earnings Estimates

Wall Street Analysts Forecast Growth

Several equities analysts have commented on CVNA shares. BTIG Research set a $82.00 price target on Carvana and gave the company a “buy” rating in a report on Thursday. Bank of America restated a “neutral” rating on shares of Carvana in a research report on Thursday. Wells Fargo & Company restated an “overweight” rating and issued a $75.00 price objective (down from $80.00) on shares of Carvana in a research report on Friday, October 23rd. Stephens reaffirmed an “overweight” rating and issued a $83.00 price objective (down from $91.50) on shares of Carvana in a research note on Tuesday, October 6th. Finally, Jefferies Financial Group restated a “buy” rating on shares of Carvana in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $81.78.

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 company’s fifty day moving average price is $65.89 and its two-hundred day moving average price is $69.64. The company has a market cap of $74.98 billion, a price-to-earnings ratio of 37.62, a PEG ratio of 1.71 and a beta of 3.55.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.05). The company had revenue of $8.04 billion during the quarter, compared to the consensus estimate of $7.71 billion. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company’s revenue was up 42.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.03 earnings per share. On average, equities research analysts forecast that Carvana Co. will post 1.63 EPS for the current fiscal year.

Insider Buying and Selling at Carvana

In other news, CFO Mark W. Jenkins sold 63,750 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $64.50, for a total value of $4,111,875.00. Following the sale, the chief financial officer owned 1,156,534 shares of the company’s stock, valued at $74,596,443. The trade was a 5.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin Huston sold 50,000 shares of the firm’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $71.55, for a total transaction of $3,577,500.00. Following the completion of the transaction, the chief operating officer directly owned 478,693 shares of the company’s stock, valued at approximately $34,250,484.15. This trade represents a 9.46% 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. Insiders sold 358,161 shares of company stock valued at $24,164,285 in the last 90 days. 15.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Carvana

A number of hedge funds and other institutional investors have recently modified their holdings of CVNA. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Carvana during the 3rd quarter worth approximately $13,419,000. Vise Technologies Inc. raised its holdings in shares of Carvana by 20.8% in the 3rd quarter. Vise Technologies Inc. now owns 38,114 shares of the company’s stock valued at $2,384,000 after purchasing an additional 6,554 shares during the period. State of Wyoming lifted its stake in Carvana by 12.4% in the 3rd quarter. State of Wyoming now owns 16,450 shares of the company’s stock valued at $1,029,000 after purchasing an additional 1,821 shares during the last quarter. Steadview Capital Management LLC grew its holdings in Carvana by 3.6% during the third quarter. Steadview Capital Management LLC now owns 783,031 shares of the company’s stock worth $48,971,000 after purchasing an additional 27,415 shares during the period. Finally, Choreo LLC grew its holdings in Carvana by 58.6% during the third quarter. Choreo LLC now owns 16,572 shares of the company’s stock worth $1,036,000 after purchasing an additional 6,123 shares during the period. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Company Profile

Carvana Co (NYSE: CVNA) is an online automotive retailer that sells used vehicles through its digital platform. Customers can browse vehicles, review detailed descriptions and vehicle history information, arrange financing, complete transactions online and choose home delivery or pickup at a Carvana location.

The company also provides vehicle trade-in services and offers related products, including vehicle protection plans and other automotive services. Carvana is known for its automated, glass-enclosed vehicle vending machines, which provide an alternative pickup experience in select markets.

Founded in 2012 and headquartered in Tempe, Arizona, Carvana began operations as an online used-car retailer in 2013 and went public in 2017.