Mark Jenkins Sells 63,750 Shares of Carvana (NYSE:CVNA) Stock

Carvana Co. (NYSE:CVNA) CFO Mark Jenkins sold 63,750 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $64.50, for a total value of $4,111,875.00. Following the sale, the chief financial officer directly owned 1,156,534 shares of the company’s stock, valued at $74,596,443. The trade was a 5.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carvana Trading Up 2.1%

NYSE:CVNA opened at $69.47 on Thursday. The firm has a market cap of $76.20 billion, a P/E ratio of 38.42, a PEG ratio of 2.51 and a beta of 3.46. The company has a current ratio of 3.93, a quick ratio of 2.33 and a debt-to-equity ratio of 0.94. The stock’s 50 day simple moving average is $66.70 and its 200-day simple moving average is $70.11. Carvana Co. has a 12-month low of $54.46 and a 12-month high of $97.38.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share 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 the consensus estimate of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The company’s revenue for the quarter was up 52.4% on a year-over-year basis. During the same period last year, the company earned $1.51 earnings per share. Equities analysts anticipate that Carvana Co. will post 1.65 EPS for the current year.

Analysts Set New Price Targets

CVNA has been the topic of a number of recent analyst reports. Royal Bank Of Canada set a $82.00 price target on shares of Carvana and gave the stock an “outperform” rating in a research note on Thursday, July 30th. Gordon Haskett lifted their price objective on Carvana from $67.00 to $85.00 and gave the company a “hold” rating in a report on Thursday, April 30th. Evercore set a $75.00 target price on Carvana in a research note on Thursday, July 30th. Wells Fargo & Company set a $80.00 price target on Carvana and gave the company an “overweight” rating in a report on Thursday, July 30th. Finally, UBS Group restated a “buy” rating and issued a $83.00 price target on shares of Carvana in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $84.14.

Key Carvana News

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.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ascentis Independent Advisors acquired a new stake in shares of Carvana during the 1st quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Carvana during the fourth quarter worth $29,000. Farmers & Merchants Investments Inc. purchased a new stake in Carvana during the fourth quarter worth $29,000. Annis Gardner Whiting Capital Advisors LLC grew its holdings in Carvana by 152.6% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock valued at $30,000 after purchasing an additional 58 shares during the last quarter. Finally, Motiv8 Investments LLC purchased a new position in shares of Carvana in the fourth quarter valued at $33,000. 56.71% of the stock is currently owned by institutional investors and hedge funds.

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.