Carvana (NYSE:CVNA) Trading Down 6.6% – Should You Sell?

Shares of Carvana Co. (NYSE:CVNA) were down 6.6% during mid-day trading on Friday . The company traded as low as $231.80 and last traded at $231.31. Approximately 1,913,937 shares changed hands during trading, a decline of 51% from the average daily volume of 3,918,422 shares. The stock had previously closed at $247.72.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CVNA. Evercore ISI upped their price target on shares of Carvana from $240.00 to $245.00 and gave the company an “in-line” rating in a research report on Tuesday, December 3rd. William Blair restated an “outperform” rating on shares of Carvana in a report on Thursday. DA Davidson lifted their price target on Carvana from $220.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday. Wedbush set a $250.00 price target on Carvana and gave the company a “neutral” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised their price objective on Carvana from $300.00 to $350.00 and gave the stock an “overweight” rating in a research report on Friday, January 31st. Nine equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to data from MarketBeat, Carvana currently has an average rating of “Moderate Buy” and a consensus price target of $265.06.

Carvana Stock Performance

The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82. The stock has a market cap of $46.33 billion, a P/E ratio of 142.13 and a beta of 3.37. The firm’s 50-day moving average is $234.35 and its two-hundred day moving average is $208.28.

Carvana (NYSE:CVNA) last announced its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, topping the consensus estimate of $0.29 by $0.27. Carvana had a net margin of 1.54% and a return on equity of 36.59%. The company had revenue of $3.55 billion for the quarter, compared to analyst estimates of $3.32 billion. As a group, research analysts expect that Carvana Co. will post 2.85 EPS for the current year.

Insider Buying and Selling at Carvana

In other news, CFO Mark W. Jenkins sold 28,422 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $288.85, for a total transaction of $8,209,694.70. Following the transaction, the chief financial officer now owns 219,962 shares of the company’s stock, valued at approximately $63,536,023.70. This represents a 11.44 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Ira J. Platt sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $244.30, for a total value of $6,107,500.00. Following the completion of the sale, the director now owns 5,227 shares of the company’s stock, valued at approximately $1,276,956.10. This trade represents a 82.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 173,629 shares of company stock worth $44,833,799 over the last three months. Corporate insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quent Capital LLC bought a new stake in Carvana during the fourth quarter valued at about $28,000. Global Retirement Partners LLC lifted its position in shares of Carvana by 109.9% during the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock worth $30,000 after purchasing an additional 78 shares during the last quarter. Rialto Wealth Management LLC bought a new stake in Carvana during the 4th quarter valued at approximately $31,000. ORG Wealth Partners LLC acquired a new stake in Carvana in the 4th quarter valued at approximately $34,000. Finally, Versant Capital Management Inc bought a new position in Carvana in the 4th quarter worth approximately $42,000. 56.71% of the stock is currently owned by institutional investors and hedge funds.

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.