Carvana (NYSE:CVNA) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Carvana (NYSE:CVNA) from a hold rating to a strong-buy rating in a research note released on Monday morning,Zacks.com reports.

A number of other research analysts have also recently weighed in on CVNA. Morgan Stanley lifted their target price on shares of Carvana from $90.00 to $102.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Robert W. Baird set a $88.00 target price on shares of Carvana in a report on Friday, May 15th. Stephens boosted their target price on shares of Carvana from $86.00 to $97.00 in a report on Thursday, April 30th. Needham & Company LLC restated a “buy” rating and issued a $120.00 target price on shares of Carvana in a report on Friday. Finally, Wells Fargo & Company boosted their target price on shares of Carvana from $85.00 to $95.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $93.14.

Carvana Trading Up 0.3%

NYSE:CVNA opened at $69.68 on Monday. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. Carvana has a 12 month low of $54.46 and a 12 month high of $97.38. The company has a market cap of $76.43 billion, a PE ratio of 42.39, a price-to-earnings-growth ratio of 11.72 and a beta of 3.45. The company has a 50 day simple moving average of $70.84 and a two-hundred day simple moving average of $75.17.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $0.32 by $1.37. The business had revenue of $6.43 billion for the quarter, compared to analysts’ expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Research analysts forecast that Carvana will post 1.58 earnings per share for the current year.

Insider Buying and Selling at Carvana

In related news, insider Thomas Taira sold 5,597 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $67.15, for a total transaction of $375,838.55. Following the completion of the sale, the insider owned 315,075 shares of the company’s stock, valued at $21,157,286.25. This represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $70.40, for a total transaction of $4,488,000.00. Following the completion of the transaction, the chief financial officer directly owned 1,036,594 shares of the company’s stock, valued at approximately $72,976,217.60. This represents a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 386,287 shares of company stock worth $27,022,696 over the last quarter. 15.19% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD raised its holdings in shares of Carvana by 8.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock worth $7,481,081,000 after purchasing an additional 1,407,762 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Carvana by 24.7% in the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock valued at $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp grew its position in shares of Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after purchasing an additional 2,764,759 shares during the period. Capital Research Global Investors grew its position in shares of Carvana by 42.9% in the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after purchasing an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of Carvana by 55.4% in the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after purchasing an additional 1,382,852 shares during the period. Hedge funds and other institutional investors own 56.71% of the company’s stock.

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.