Carvana (NYSE:CVNA) Given New $90.00 Price Target at Citigroup

Carvana (NYSE:CVNA) had its price target lowered by Citigroup from $93.00 to $90.00 in a research report report published on Friday, MarketBeat.com reports. The firm currently has a buy rating on the stock.

A number of other equities research analysts have also commented on the stock. Argus lowered their price target on shares of Carvana from $500.00 to $100.00 in a report on Monday, May 11th. Robert W. Baird set a $72.00 price target on shares of Carvana in a report on Thursday. Zacks Research lowered shares of Carvana from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 15th. Jefferies Financial Group decreased their price objective on shares of Carvana from $95.00 to $90.00 and set a “buy” rating on the stock in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company set a $80.00 price objective on shares of Carvana and gave the company an “overweight” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $85.86.

Carvana Price Performance

Shares of Carvana stock opened at $62.25 on Friday. The company has a debt-to-equity ratio of 0.94, a current ratio of 3.93 and a quick ratio of 2.57. The business’s 50 day simple moving average is $66.85 and its two-hundred day simple moving average is $70.64. The stock has a market capitalization of $68.28 billion, a P/E ratio of 34.43, a price-to-earnings-growth ratio of 13.96 and a beta of 3.46. Carvana has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The firm had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the previous year, the company posted $1.51 earnings per share. The business’s revenue was up 52.4% on a year-over-year basis. Analysts forecast that Carvana will post 1.61 EPS for the current year.

Insider Activity at Carvana

In related news, Director J Danforth Quayle sold 14,525 shares of the firm’s stock in a transaction on 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 completion of the sale, the director owned 214,960 shares of the company’s stock, valued at $15,047,200. This trade represents a 6.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of Carvana stock in a transaction 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 in the company, valued at approximately $21,157,286.25. This trade represents a 1.75% 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. Insiders have sold 278,212 shares of company stock valued at $19,343,496 over the last 90 days. Company insiders own 15.19% of the company’s stock.

Institutional Investors Weigh In On Carvana

Institutional investors and hedge funds have recently modified their holdings of the stock. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Carvana during the fourth quarter valued at about $29,000. Farmers & Merchants Investments Inc. bought a new position in Carvana in the fourth quarter worth about $29,000. Motiv8 Investments LLC purchased a new stake in Carvana in the fourth quarter worth about $33,000. Ascentis Independent Advisors purchased a new stake in Carvana in the first quarter worth about $26,000. Finally, Salomon & Ludwin LLC boosted its position in Carvana by 112.5% during the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after acquiring an additional 45 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

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

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.