Carvana Sees Unusually High Options Volume (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) was the target of unusually large options trading activity on Tuesday. Stock traders acquired 89,113 put options on the company. This is an increase of approximately 48% compared to the typical volume of 60,304 put options.

Analyst Ratings Changes

Several research firms have recently weighed in on CVNA. UBS Group reissued a “buy” rating and issued a $83.00 target price on shares of Carvana in a research report on Friday, July 31st. Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 price target on shares of Carvana in a research report on Thursday, July 30th. Argus decreased their price target on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. Royal Bank Of Canada set a $82.00 price objective on Carvana and gave the company an “outperform” rating in a report on Thursday, July 30th. Finally, Stephens upped their price objective on Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and a consensus target price of $84.14.

Insider Buying and Selling at Carvana

In other Carvana news, Director J Danforth Quayle sold 14,525 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $75.00, for a total transaction of $1,089,375.00. Following the transaction, the director directly owned 214,960 shares in the company, valued at $16,122,000. This represents a 6.33% decrease in their position. The transaction 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, Director Ira J. Platt sold 15,000 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $75.50, for a total transaction of $1,132,500.00. Following the transaction, the director owned 186,470 shares in the company, valued at $14,078,485. This trade represents a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 420,897 shares of company stock valued at $28,777,664. Corporate insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of large investors have recently bought and sold shares of CVNA. Ascentis Independent Advisors acquired a new position in Carvana in the first quarter valued at approximately $26,000. Farmers & Merchants Investments Inc. acquired a new stake in shares of Carvana during the 4th quarter worth approximately $29,000. Annis Gardner Whiting Capital Advisors LLC raised its position in shares of Carvana by 152.6% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock worth $30,000 after purchasing an additional 58 shares during the period. Transamerica Financial Advisors LLC lifted its holdings in shares of Carvana by 558.0% in the 2nd quarter. Transamerica Financial Advisors LLC now owns 454 shares of the company’s stock worth $30,000 after purchasing an additional 385 shares during the last quarter. Finally, Motiv8 Investments LLC bought a new stake in shares of Carvana in the 4th quarter worth approximately $33,000. Institutional investors own 56.71% of the company’s stock.

Carvana Stock Performance

Carvana stock traded down $5.24 during mid-day trading on Tuesday, reaching $64.85. The company’s stock had a trading volume of 16,860,675 shares, compared to its average volume of 14,572,993. 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 has a twelve month low of $54.46 and a twelve month high of $97.38. The business has a 50 day moving average price of $67.14 and a 200-day moving average price of $68.79. The firm has a market cap of $71.37 billion, a price-to-earnings ratio of 35.87, a PEG ratio of 2.75 and a beta of 3.46.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company had revenue of $7.38 billion for the quarter, compared to analysts’ expectations of $6.90 billion. During the same period in the prior year, the company earned $1.51 earnings per share. The firm’s revenue was up 52.4% compared to the same quarter last year. Sell-side analysts predict that Carvana will post 1.68 EPS for the current fiscal 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.