Bank of America Has Lowered Expectations for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its target price lowered by stock analysts at Bank of America from $460.00 to $400.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the stock. Bank of America‘s target price would suggest a potential upside of 10.51% from the stock’s current price.

A number of other equities analysts also recently commented on the stock. Needham & Company LLC reissued a “buy” rating and issued a $500.00 price objective on shares of Carvana in a research note on Monday, November 17th. Jefferies Financial Group lifted their target price on Carvana from $475.00 to $550.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Wells Fargo & Company increased their price target on shares of Carvana from $500.00 to $525.00 and gave the company an “overweight” rating in a research report on Tuesday, January 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $460.00 price objective on shares of Carvana in a research report on Thursday, October 30th. Finally, Citigroup increased their target price on shares of Carvana from $445.00 to $550.00 and gave the company a “buy” rating in a research report on Friday, December 12th. Nineteen research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Carvana has an average rating of “Moderate Buy” and an average price target of $465.41.

Carvana Trading Up 3.1%

Shares of CVNA opened at $361.96 on Thursday. The company’s fifty day simple moving average is $428.22 and its 200-day simple moving average is $382.10. The company has a market cap of $78.74 billion, a P/E ratio of 82.64 and a beta of 3.57. The company has a current ratio of 4.05, a quick ratio of 2.55 and a debt-to-equity ratio of 1.63. Carvana has a twelve month low of $148.25 and a twelve month high of $486.89.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $3.12. Carvana had a return on equity of 30.62% and a net margin of 3.44%.The firm had revenue of $5.60 billion during the quarter, compared to analyst estimates of $5.24 billion. During the same period last year, the company earned $0.56 EPS. Carvana’s quarterly revenue was up 58.0% compared to the same quarter last year. As a group, analysts expect that Carvana will post 2.85 EPS for the current year.

Insider Activity at Carvana

In other Carvana news, CFO Mark W. Jenkins sold 12,750 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $410.19, for a total transaction of $5,229,922.50. Following the sale, the chief financial officer directly owned 202,817 shares of the company’s stock, valued at approximately $83,193,505.23. This trade represents a 5.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Benjamin E. Huston sold 10,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $411.27, for a total value of $4,112,700.00. Following the completion of the sale, the chief operating officer owned 98,652 shares in the company, valued at $40,572,608.04. The trade was a 9.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 420,351 shares of company stock worth $179,589,049 in the last quarter. 17.12% of the stock is owned by insiders.

Hedge Funds Weigh In On Carvana

Several large investors have recently made changes to their positions in the company. Royal Bank of Canada increased its holdings in Carvana by 40.8% in the first quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock valued at $6,243,000 after buying an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Carvana by 251.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock valued at $53,000 after purchasing an additional 181 shares in the last quarter. CWM LLC boosted its position in Carvana by 9.5% during the second quarter. CWM LLC now owns 2,203 shares of the company’s stock worth $742,000 after purchasing an additional 191 shares in the last quarter. Yousif Capital Management LLC grew its holdings in Carvana by 26.6% in the second quarter. Yousif Capital Management LLC now owns 1,603 shares of the company’s stock valued at $540,000 after purchasing an additional 337 shares during the period. Finally, Harbour Investments Inc. raised its stake in shares of Carvana by 46.5% during the 2nd quarter. Harbour Investments Inc. now owns 208 shares of the company’s stock worth $70,000 after buying an additional 66 shares during the period. 56.71% of the stock is currently owned by institutional investors and hedge funds.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Company beat expectations — Q4 revenue $5.6B (up 58% YoY) and EPS $4.22, handily above Street estimates; management highlighted record unit economics and improved operating profit/cash from operations. Carvana Announces Record Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Street reaction includes multiple buy/overweight ratings and high price targets (median ~ $515), reflecting analyst confidence that improved fundamentals support higher equity value. QuiverQuant: Carvana Q4 results and analyst activity
• Neutral Sentiment: Full earnings disclosure and the call transcript provide detail on margins, inventory and channel dynamics; useful for modeling but not a single clear catalyst. Earnings Call Transcript
• Neutral Sentiment: Press snapshots and analyst notes compare key metrics versus estimates — revenue and gross profit strong, but some per‑unit profitability metrics show mixed trends that require deeper read. Q4 Earnings Snapshot
• Negative Sentiment: Accounting and profitability questions raised on the earnings call and in coverage; lack of clear answers on certain metrics contributed to investor concern. PYMNTS: Accounting scrutiny and profitability concerns
• Negative Sentiment: Regulatory/fraud allegations and an investor class action probe (Pomerantz) surfaced ahead of/around the report, increasing downside risk and headline sensitivity. Pomerantz investor alert
• Negative Sentiment: Heavy insider selling revealed in coverage and institutional flow headlines increase perceived governance/owner alignment risk and amplify volatility. QuiverQuant: insider selling & institutional changes

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.