Citizens Jmp Has Lowered Expectations for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its price objective reduced by equities researchers at Citizens Jmp from $103.00 to $83.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has a “market outperform” rating on the stock. Citizens Jmp’s price target suggests a potential upside of 33.33% from the stock’s current price.

A number of other research firms have also recently issued reports on CVNA. Jefferies Financial Group dropped their price objective on Carvana from $95.00 to $90.00 and set a “buy” rating for the company in a report on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $107.40 target price on shares of Carvana in a research report on Thursday, April 30th. Evercore upped their price target on Carvana from $78.00 to $80.00 in a research report on Tuesday, April 28th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Carvana in a research note on Thursday, June 18th. Finally, BNP Paribas Exane upped their price objective on Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $85.86.

Carvana Stock Up 1.3%

Shares of CVNA stock opened at $62.25 on Thursday. The company’s fifty day moving average price is $66.85 and its 200-day moving average price is $70.64. Carvana has a one year low of $54.46 and a one year high of $97.38. The company has a market capitalization of $68.28 billion, a price-to-earnings ratio of 34.43, a PEG ratio of 13.96 and a beta of 3.46. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.57.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same quarter in the prior year, the business earned $1.51 earnings per share. Carvana’s revenue for the quarter was up 52.4% on a year-over-year basis. Sell-side analysts expect that Carvana will post 1.61 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Mark W. Jenkins sold 63,750 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $68.34, for a total value of $4,356,675.00. Following the completion of the sale, the chief financial officer owned 1,029,580 shares in the company, valued at approximately $70,361,497.20. This trade represents a 5.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director directly owned 214,960 shares in the company, valued at $15,047,200. This trade represents a 6.33% decrease in their position. 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 ninety days, insiders sold 278,212 shares of company stock valued at $19,343,496. 15.19% of the stock is owned by insiders.

Institutional Trading of Carvana

Institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its stake in Carvana by 40.8% during the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock valued at $6,243,000 after purchasing an additional 8,654 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Carvana by 251.4% in the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock valued at $53,000 after buying an additional 181 shares in the last quarter. Cerity Partners LLC boosted its position in shares of Carvana by 28.8% in the 2nd quarter. Cerity Partners LLC now owns 5,481 shares of the company’s stock valued at $1,847,000 after purchasing an additional 1,226 shares during the period. AXA S.A. increased its position in shares of Carvana by 340.7% in the second quarter. AXA S.A. now owns 4,253 shares of the company’s stock worth $1,433,000 after acquiring an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC raised its stake in Carvana by 9.1% during the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company’s stock valued at $3,334,000 after purchasing an additional 825 shares during the period. 56.71% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter performance, including $7.38 billion in revenue, $513 million in net income and $769 million in adjusted EBITDA. Retail unit sales increased 38%, while the company extended its streak of growth and profitability. Carvana Reports Record Profit But Cools Expectations With Cautious Outlook
• Positive Sentiment: Management highlighted continued platform expansion, inventory growth and software investments, including an artificial-intelligence customer-service agent intended to reduce service costs. Same-day delivery also expanded to the Fort Myers market. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Needham maintained a buy rating and a $120 price target, arguing that the post-earnings selloff may offer an opportunity. Citigroup, Barclays and BTIG also retained bullish ratings, although each lowered its target. Needham Says Carvana Stock Could Double as Management Lowers Guidance
• Neutral Sentiment: Some analysts continue to view strong consumer demand and Carvana’s online retail model favorably, suggesting the business remains fundamentally healthy despite the market’s negative earnings reaction.
• Negative Sentiment: Carvana’s full-year adjusted EBITDA outlook of approximately $2.7 billion to $3.0 billion, with a midpoint below Wall Street expectations, disappointed investors. The guidance overshadowed the quarterly beat and raised concerns about the pace of future earnings growth. CVNA Stock Is Dropping After a Record Quarter
• Negative Sentiment: Analysts also cited declining gross profit per unit and adjusted EBITDA margins. BNP Paribas Exane lowered its rating to neutral and cut its price target sharply, while several other firms reduced targets, indicating that valuation is harder to justify without renewed margin expansion. Carvana Profit Compression Makes This Stock Tougher To Bank On

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.