Stock Traders Buy Large Volume of Call Options on Carvana (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) saw unusually large options trading on Monday. Stock investors bought 113,933 call options on the stock. This represents an increase of approximately 41% compared to the average daily volume of 80,752 call options.

Analyst Upgrades and Downgrades

CVNA has been the topic of several recent research reports. Morgan Stanley reissued an “overweight” rating on shares of Carvana in a report on Thursday, January 8th. Wedbush cut their target price on Carvana from $500.00 to $425.00 and set an “outperform” rating on the stock in a research note on Thursday. Argus initiated coverage on shares of Carvana in a report on Monday, December 15th. They set a “buy” rating and a $500.00 price target for the company. Jefferies Financial Group dropped their price objective on shares of Carvana from $550.00 to $485.00 and set a “buy” rating on the stock in a report on Monday. Finally, DA Davidson reduced their target price on shares of Carvana from $470.00 to $320.00 and set a “neutral” rating for the company in a research note on Thursday. Twenty investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $440.59.

Insiders Place Their Bets

In related news, insider Thomas Taira sold 1,047 shares of the firm’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $398.54, for a total transaction of $417,271.38. Following the transaction, the insider directly owned 66,625 shares in the company, valued at $26,552,727.50. This trade represents a 1.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Daniel J. Gill sold 40,000 shares of the business’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $475.24, for a total transaction of $19,009,600.00. Following the sale, the insider owned 191,106 shares of the company’s stock, valued at approximately $90,821,215.44. The trade was a 17.31% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 420,351 shares of company stock worth $179,589,049. Corporate insiders own 16.36% of the company’s stock.

Institutional Trading of Carvana

Several institutional investors have recently modified their holdings of the company. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Carvana during the fourth quarter worth about $29,000. Farmers & Merchants Investments Inc. bought a new position in shares of Carvana during the 4th quarter valued at about $29,000. ORG Partners LLC grew its stake in shares of Carvana by 8,700.0% in the 3rd quarter. ORG Partners LLC now owns 88 shares of the company’s stock worth $33,000 after purchasing an additional 87 shares during the last quarter. Motiv8 Investments LLC bought a new stake in shares of Carvana in the 4th quarter worth approximately $33,000. Finally, Salomon & Ludwin LLC raised its holdings in shares of Carvana by 112.5% in the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock worth $37,000 after purchasing an additional 45 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Jefferies cut its price target to $485 but maintained a “buy” rating, still implying large upside from current levels — a moderating, constructive signal for investors. Jefferies adjusts price target on Carvana to $485 from $550; maintains buy rating
• Positive Sentiment: Needham & Company reiterated its “Buy” rating on CVNA, providing continued analyst conviction despite sector volatility. Carvana’s (CVNA) “Buy” Rating Reiterated at Needham & Company LLC
• Negative Sentiment: Gordon Haskett cut its price target to $350, signaling a more conservative near-term view on Carvana’s valuation. Gordon Haskett Cuts Carvana Price Target to $350
• Negative Sentiment: Wells Fargo lowered its price target to $425, another downgrade that reduces consensus upside. Wells Fargo Cuts Carvana Price Target to $425
• Negative Sentiment: JPMorgan trimmed its target to $490 — still elevated but a downward adjustment that weighs on sentiment. JPMorgan Cuts Carvana Price Target to $490
• Negative Sentiment: Evercore reduced its price target to $390, joining peers in dialing back valuations. Evercore Cuts Carvana Price Target to $390
• Negative Sentiment: Citigroup cut its target to $465, another headline contributing to downward pressure. Citigroup Cuts Carvana Price Target to $465
• Negative Sentiment: Bank of America lowered its price target to $400, reducing analyst-derived valuation support. Bank of America Cuts Carvana Price Target to $400
• Negative Sentiment: Wedbush trimmed its target to $425, adding to the cluster of cuts this session. Wedbush Cuts Carvana Price Target to $425

Carvana Price Performance

Carvana stock traded down $16.23 during trading hours on Monday, hitting $320.39. 3,244,897 shares of the company traded hands, compared to its average volume of 4,555,344. Carvana has a 1-year low of $148.25 and a 1-year high of $486.89. The firm has a market cap of $69.70 billion, a P/E ratio of 40.08 and a beta of 3.57. The firm’s 50-day simple moving average is $423.03 and its two-hundred day simple moving average is $381.99. The company has a quick ratio of 2.73, a current ratio of 4.31 and a debt-to-equity ratio of 1.15.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.24 billion. During the same period last year, the firm posted $0.56 earnings per share. The business’s revenue was up 58.0% on a year-over-year basis. As a group, analysts forecast that Carvana will post 2.85 earnings per share for the current fiscal year.

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.