Carvana Co. (NYSE:CVNA) Given Average Rating of “Moderate Buy” by Analysts

Shares of Carvana Co. (NYSE:CVNA) have received a consensus rating of “Moderate Buy” from the twenty-three analysts that are covering the stock, MarketBeat reports. Seven research analysts have rated the stock with a hold recommendation, fifteen have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $85.8571.

A number of brokerages recently commented on CVNA. Gordon Haskett upped their price objective on Carvana from $67.00 to $85.00 and gave the stock a “hold” rating in a research note on Thursday, April 30th. Weiss Ratings restated a “hold (c+)” rating on shares of Carvana in a research report on Thursday, June 18th. Barclays cut their price target on Carvana from $94.00 to $93.00 and set an “overweight” rating on the stock in a report on Friday. Bank of America raised their target price on Carvana from $72.00 to $82.00 and gave the company a “neutral” rating in a research report on Tuesday, April 21st. Finally, Citizens Jmp reduced their price target on Carvana from $103.00 to $83.00 and set a “market outperform” rating for the company in a research report on Thursday.

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

Insider Activity at Carvana

In other news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $68.53, for a total value of $342,650.00. Following the completion of the transaction, the vice president directly owned 144,934 shares in the company, valued at $9,932,327.02. This trade represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Danforth Quayle sold 14,525 shares of the business’s stock in a transaction that occurred 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 sale, the director directly owned 214,960 shares in the company, valued at approximately $15,047,200. The trade was a 6.33% 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 278,212 shares of company stock worth $19,343,496 in the last three months. Insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in shares of Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock worth $7,082,804,000 after acquiring an additional 3,328,115 shares during the last quarter. State Street Corp lifted its stake in Carvana by 93.7% during the fourth quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after buying an additional 2,764,759 shares in the last quarter. Capital Research Global Investors boosted its holdings 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 worth $2,405,959,000 after buying an additional 1,711,144 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of Carvana by 8.6% in 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 acquiring an additional 1,407,762 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after acquiring an additional 1,382,852 shares in the last quarter. Institutional investors own 56.71% of the company’s stock.

Carvana Price Performance

Shares of NYSE:CVNA opened at $62.25 on Monday. The company has a market cap of $68.28 billion, a PE ratio of 34.43, a P/E/G ratio of 2.30 and a beta of 3.46. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The firm has a 50-day simple moving average of $66.85 and a 200 day simple moving average of $70.64. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.03. The company had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.Carvana’s quarterly revenue was up 52.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.51 earnings per share. On average, sell-side analysts anticipate that Carvana will post 1.65 EPS for the current year.

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.