Carvana (NYSE:CVNA) Shares Down 6.6% After Insider Selling

Carvana Co. (NYSE:CVNA)’s share price dropped 6.6% on Tuesday after an insider sold shares in the company. The stock traded as low as $126.39 and last traded at $126.60. Approximately 1,816,871 shares were traded during trading, a decline of 65% from the average daily volume of 5,139,057 shares. The stock had previously closed at $135.48.

Specifically, major shareholder Ernest C. Garcia II sold 75,000 shares of the stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $141.72, for a total transaction of $10,629,000.00. Following the completion of the transaction, the insider now directly owns 40,733,131 shares in the company, valued at approximately $5,772,699,325.32. The transaction was disclosed in a document filed with the SEC, which is available at this link.

Wall Street Analyst Weigh In

Several research firms have commented on CVNA. Piper Sandler increased their target price on Carvana from $105.00 to $151.00 and gave the stock a “neutral” rating in a research note on Thursday, August 1st. JPMorgan Chase & Co. boosted their target price on shares of Carvana from $150.00 to $155.00 and gave the company an “overweight” rating in a research report on Friday, July 19th. TD Cowen lifted their price objective on shares of Carvana from $110.00 to $148.00 and gave the stock a “hold” rating in a research note on Thursday, August 1st. JMP Securities reaffirmed a “market outperform” rating and set a $200.00 target price on shares of Carvana in a report on Monday. Finally, Wells Fargo & Company upgraded Carvana from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $77.00 to $175.00 in a research note on Thursday, August 1st. One analyst has rated the stock with a sell rating, ten have given a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $148.40.

Carvana Price Performance

The company has a market capitalization of $25.92 billion, a price-to-earnings ratio of 56.40 and a beta of 3.43. The business has a 50-day moving average price of $138.99 and a two-hundred day moving average price of $110.87. The company has a quick ratio of 2.02, a current ratio of 3.11 and a debt-to-equity ratio of 47.20.

Hedge Funds Weigh In On Carvana

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of Carvana by 7.0% during the 4th quarter. Vanguard Group Inc. now owns 10,023,579 shares of the company’s stock worth $530,648,000 after acquiring an additional 655,603 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of Carvana by 6.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 831,879 shares of the company’s stock valued at $44,040,000 after buying an additional 53,318 shares in the last quarter. Rafferty Asset Management LLC boosted its holdings in Carvana by 38.6% in the 4th quarter. Rafferty Asset Management LLC now owns 43,792 shares of the company’s stock worth $2,318,000 after buying an additional 12,193 shares during the period. Investmentaktiengesellschaft Fuer Langfristige Investoren TGV raised its holdings in Carvana by 17.6% during the 4th quarter. Investmentaktiengesellschaft Fuer Langfristige Investoren TGV now owns 500,000 shares of the company’s stock valued at $26,470,000 after acquiring an additional 75,000 shares during the period. Finally, Tidal Investments LLC purchased a new stake in shares of Carvana during the first quarter worth $1,783,000. Institutional investors own 56.71% of the company’s stock.

About Carvana

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.