Carvana Co. (NYSE:CVNA) Receives $93.14 Consensus Price Target from Brokerages

Carvana Co. (NYSE:CVNA) has been assigned an average rating of “Moderate Buy” from the twenty-four ratings firms that are currently covering the firm, MarketBeat reports. Five investment analysts have rated the stock with a hold recommendation, seventeen have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $93.1391.

Several equities research analysts have recently issued reports on the company. Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 target price on shares of Carvana in a research report on Friday, June 5th. BTIG Research restated a “buy” rating and set a $97.00 price target on shares of Carvana in a research report on Friday, June 5th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $107.40 price objective on shares of Carvana in a report on Thursday, April 30th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $92.00 target price on shares of Carvana in a research note on Friday, June 12th. Finally, Wedbush reduced their target price on shares of Carvana from $100.00 to $85.00 and set an “outperform” rating for the company in a research report on Thursday, February 19th.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is pushing deeper into new-car sales with its Dallas “car playground” concept and plans to acquire seven Stellantis dealerships, which could expand its addressable market and support longer-term growth. Carvana (CVNA) Stock Could Be 45.6% Undervalued After Dallas Launch And Dealership Deal
• Positive Sentiment: Commentary around Carvana’s new sales model has highlighted customer convenience and innovation, which may be helping sentiment around the company’s long-term strategy. Carvana opens ‘car playground’ for easy test drive booking
• Positive Sentiment: Some analysts continue to argue that CVNA remains undervalued relative to its growth and operational improvements, with bullish reports pointing to expanding margins and strong execution. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: Carvana’s insider activity included a director sale of 15,000 shares, but the transaction was relatively small compared with the executive’s remaining stake and does not by itself signal a major fundamental change. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: Bearish articles are warning that Carvana’s rally may have run ahead of fundamentals, citing valuation risk and the potential for a “bull trap” if growth expectations cool. Carvana’s Triple-Top Bull-Trap Plays Out – Inflated Valuation Risks Remain
• Negative Sentiment: Peer CarMax’s earnings update raised concerns about used-car margin pressure, weaker volumes, and credit risk, which spilled over into CVNA and weighed on sentiment across the auto retail group. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins

Insiders Place Their Bets

In other Carvana news, CFO Mark W. Jenkins sold 63,750 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $62.07, for a total transaction of $3,956,962.50. Following the completion of the transaction, the chief financial officer directly owned 985,445 shares of the company’s stock, valued at approximately $61,166,571.15. This represents a 6.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ira J. Platt sold 15,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the sale, the director directly owned 186,470 shares of the company’s stock, valued at $12,648,260.10. This represents a 7.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 415,812 shares of company stock valued at $29,056,896 in the last quarter. 15.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Carvana

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in Carvana by 24.7% during the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp raised its position in shares of Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after purchasing an additional 2,764,759 shares during the period. Capital Research Global Investors lifted its stake in shares of Carvana by 42.9% during the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after buying an additional 1,711,144 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock worth $7,481,081,000 after buying an additional 1,407,762 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock worth $1,632,763,000 after buying an additional 1,382,852 shares during the period. 56.71% of the stock is currently owned by institutional investors.

Carvana Stock Performance

CVNA stock opened at $66.56 on Friday. The firm has a market cap of $73.01 billion, a PE ratio of 40.49, a P/E/G ratio of 10.61 and a beta of 3.45. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The business has a 50 day moving average of $71.54 and a 200-day moving average of $75.15. Carvana 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, April 29th. The company reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $1.37. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The business had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. As a group, sell-side analysts expect that Carvana will post 1.58 earnings per share 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.