Carvana (NYSE:CVNA) Shares Down 9.5% – Time to Sell?

Shares of Carvana Co. (NYSE:CVNA) dropped 9.5% on Monday . The stock traded as low as $170.11 and last traded at $170.50. Approximately 1,037,508 shares changed hands during trading, a decline of 73% from the average daily volume of 3,812,941 shares. The stock had previously closed at $188.47.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on CVNA shares. JMP Securities reaffirmed a “market outperform” rating and issued a $320.00 target price on shares of Carvana in a report on Monday, December 16th. JPMorgan Chase & Co. raised their price objective on Carvana from $350.00 to $365.00 and gave the company an “overweight” rating in a research note on Friday. Evercore ISI upped their target price on Carvana from $240.00 to $245.00 and gave the company an “in-line” rating in a report on Tuesday, December 3rd. Royal Bank of Canada boosted their price objective on shares of Carvana from $280.00 to $320.00 and gave the stock an “outperform” rating in a research report on Thursday, February 20th. Finally, DA Davidson boosted their price target on Carvana from $220.00 to $260.00 and gave the stock a “neutral” rating in a report on Thursday, February 20th. Eight investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $265.94.

Carvana Price Performance

The firm has a market capitalization of $36.17 billion, a P/E ratio of 108.27 and a beta of 3.56. The company has a debt-to-equity ratio of 3.82, a current ratio of 3.64 and a quick ratio of 2.12. The company’s 50 day moving average price is $231.41 and its 200 day moving average price is $213.67.

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

Insiders Place Their Bets

In other news, Director Ira J. Platt sold 25,000 shares of the company’s stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $244.30, for a total value of $6,107,500.00. Following the sale, the director now directly owns 5,227 shares of the company’s stock, valued at approximately $1,276,956.10. This represents a 82.71 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Mark W. Jenkins sold 10,000 shares of the company’s stock in a transaction on 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 completion of the transaction, the chief financial officer now owns 189,097 shares in the company, valued at approximately $37,961,222.75. This represents a 5.02 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 119,629 shares of company stock worth $30,866,419. Company insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. FMR LLC increased its holdings in shares of Carvana by 90.8% during the third quarter. FMR LLC now owns 12,361,790 shares of the company’s stock worth $2,152,311,000 after buying an additional 5,882,656 shares in the last quarter. Whale Rock Capital Management LLC acquired a new stake in Carvana in the third quarter valued at approximately $162,953,000. Norges Bank bought a new stake in shares of Carvana during the fourth quarter valued at approximately $179,364,000. Vanguard Group Inc. raised its position in shares of Carvana by 5.6% during the fourth quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company’s stock worth $2,323,463,000 after purchasing an additional 610,234 shares during the period. Finally, Castle Hook Partners LP bought a new position in shares of Carvana in the 4th quarter worth $116,020,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

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.