Stephen Palmer Sells 5,000 Shares of Carvana (NYSE:CVNA) Stock

Carvana Co. (NYSE:CVNA) VP Stephen Palmer sold 5,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $64.49, for a total transaction of $322,450.00. Following the completion of the transaction, the vice president owned 136,909 shares in the company, valued at $8,829,261.41. This trade represents a 3.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carvana Stock Up 2.1%

CVNA opened at $69.47 on Thursday. The firm’s 50 day simple moving average is $66.70 and its two-hundred day simple moving average is $70.11. The company has a market capitalization of $76.20 billion, a PE ratio of 38.42, a PEG ratio of 2.51 and a beta of 3.46. Carvana Co. has a 1-year low of $54.46 and a 1-year high of $97.38. The company has a current ratio of 3.93, a quick ratio of 2.33 and a debt-to-equity ratio of 0.94.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.Carvana’s revenue was up 52.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.51 EPS. As a group, equities analysts forecast that Carvana Co. will post 1.65 EPS for the current year.

Institutional Investors Weigh In On Carvana

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

Analysts Set New Price Targets

A number of research analysts recently weighed in on CVNA shares. Zacks Research cut shares of Carvana from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 15th. Barclays lowered their price target on Carvana from $94.00 to $93.00 and set an “overweight” rating on the stock in a report on Friday, July 31st. BTIG Research cut their price objective on shares of Carvana from $97.00 to $87.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Stephens lifted their price objective on shares of Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $80.00 target price on shares of Carvana in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $84.14.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana’s second-quarter revenue increased 52% year over year to $7.38 billion, exceeding the $6.90 billion consensus estimate. Earnings per share of $0.42 also topped expectations of $0.39. Record retail unit volume and firm pricing supported the results. Carvana Q2 earnings article
• Positive Sentiment: Adjusted EBITDA grew despite Carvana investing in expansion, reinforcing the company’s growth story and likely helping support the stock. Analysts currently expect full-year EPS of approximately $1.65.
• Positive Sentiment: Director Michael E. Maroone bought 25,000 shares for about $1.55 million, increasing his direct stake by 17.4%. The purchase may signal confidence in the company’s long-term prospects.
• Neutral Sentiment: Chief Financial Officer Mark Jenkins is scheduled to present at the J.P. Morgan Automotive Conference on Aug. 12. The event could provide additional updates on demand, expansion plans and margins. J.P. Morgan Automotive Conference announcement
• Negative Sentiment: Carvana’s growth investments are pressuring margins, and the CEO warned that rising gasoline prices could further weigh on profitability by affecting consumer demand and vehicle economics.
• Negative Sentiment: Hovde Group raised its price target from $39.50 to $48 but maintained a “market perform” rating, implying substantial downside from recent trading levels and highlighting valuation concerns.
• Negative Sentiment: Several executives sold shares, including COO Benjamin Huston, CFO Mark Jenkins and VP Stephen Palmer. The transactions were conducted under pre-arranged Rule 10b5-1 plans, reducing their significance as a discretionary bearish signal, but they may still weigh on sentiment.

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.