Carvana (NYSE:CVNA) Trading 7.8% Higher – Here’s Why

Carvana Co. (NYSE:CVNA) rose 7.8% during trading on Tuesday . The stock traded as high as $69.53 and last traded at $70.0820. 5,102,436 shares traded hands during mid-day trading, a decline of 67% from the average daily volume of 15,369,698 shares. The stock had previously closed at $64.99.

Wall Street Analysts Forecast Growth

Several brokerages have commented on CVNA. Robert W. Baird set a $88.00 price target on shares of Carvana in a research note on Friday, May 15th. DA Davidson increased their price objective on Carvana from $64.00 to $67.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Needham & Company LLC reissued a “buy” rating and issued a $120.00 price objective on shares of Carvana in a report on Friday, June 5th. BNP Paribas Exane lifted their target price on Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. Finally, Stephens boosted their price target on Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $92.92.

Carvana Stock Performance

The stock has a market cap of $77.99 billion, a price-to-earnings ratio of 42.97, a price-to-earnings-growth ratio of 11.11 and a beta of 3.46. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The company’s 50-day simple moving average is $68.49 and its 200-day simple moving average is $72.80.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $1.37. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The company had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Analysts predict that Carvana Co. will post 1.58 EPS for the current fiscal year.

Insider Activity

In related news, Director Ira J. Platt sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the sale, the director owned 186,470 shares in the company, valued at approximately $12,648,260.10. This represents a 7.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director J Danforth Quayle sold 14,525 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the sale, the director owned 214,960 shares of the company’s stock, valued at $15,047,200. The trade was a 6.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 396,962 shares of company stock worth $28,525,088. 15.19% of the stock is owned by company insiders.

Institutional Trading of Carvana

Large investors have recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Carvana during the 4th quarter valued at $29,000. Farmers & Merchants Investments Inc. bought a new stake in Carvana in the fourth quarter worth $29,000. Motiv8 Investments LLC acquired a new position in Carvana during the fourth quarter worth $33,000. Ascentis Independent Advisors acquired a new position in Carvana during the first quarter worth $26,000. Finally, Salomon & Ludwin LLC raised its holdings in Carvana by 112.5% during the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after buying an additional 45 shares in the last quarter. 56.71% of the stock is owned by institutional investors.

Carvana Company Profile

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.