Carvana (NYSE:CVNA) Given New $425.00 Price Target at Wedbush

Carvana (NYSE:CVNA) had its price target cut by Wedbush from $500.00 to $425.00 in a research note released on Thursday morning,MarketScreener reports. They currently have an outperform rating on the stock.

Several other brokerages also recently issued reports on CVNA. Bank of America cut their target price on shares of Carvana from $460.00 to $400.00 and set a “buy” rating for the company in a research note on Thursday. JPMorgan Chase & Co. reduced their target price on Carvana from $510.00 to $490.00 and set an “overweight” rating for the company in a research note on Thursday. Morgan Stanley reissued an “overweight” rating on shares of Carvana in a report on Thursday, January 8th. Needham & Company LLC reiterated a “buy” rating and issued a $500.00 price target on shares of Carvana in a research note on Thursday. Finally, Gordon Haskett lowered their target price on Carvana from $435.00 to $350.00 and set a “hold” rating on the stock in a research note on Friday. Nineteen research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $443.55.

Carvana Stock Up 1.4%

Carvana stock traded up $4.59 during mid-day trading on Thursday, reaching $337.38. The company’s stock had a trading volume of 2,700,460 shares, compared to its average volume of 4,444,994. The company has a market capitalization of $73.39 billion, a price-to-earnings ratio of 41.96 and a beta of 3.57. The business’s 50 day simple moving average is $425.42 and its 200 day simple moving average is $381.76. The company has a debt-to-equity ratio of 1.63, a quick ratio of 2.55 and a current ratio of 4.05. Carvana has a 12 month low of $148.25 and a 12 month high of $486.89.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, beating the consensus estimate of $1.10 by $3.12. Carvana had a return on equity of 61.70% and a net margin of 6.92%.The firm had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.24 billion. During the same period in the prior year, the firm posted $0.56 earnings per share. The business’s quarterly revenue was up 58.0% compared to the same quarter last year. As a group, research analysts anticipate that Carvana will post 2.85 earnings per share for the current year.

Insider Activity at Carvana

In other news, insider Thomas Taira sold 1,047 shares of the stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $398.54, for a total value of $417,271.38. Following the completion of the transaction, the insider owned 66,625 shares of the company’s stock, valued at approximately $26,552,727.50. This represents a 1.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Benjamin E. Huston sold 10,000 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $411.27, for a total transaction of $4,112,700.00. Following the sale, the chief operating officer directly owned 98,652 shares in the company, valued at approximately $40,572,608.04. The trade was a 9.20% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 420,351 shares of company stock worth $179,589,049 in the last 90 days. Corporate insiders own 17.12% of the company’s stock.

Institutional Trading of Carvana

Hedge funds have recently made changes to their positions in the company. First Horizon Corp grew its stake in shares of Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock worth $176,000 after purchasing an additional 25 shares during the last quarter. SJS Investment Consulting Inc. raised its holdings in shares of Carvana by 28.3% during the third quarter. SJS Investment Consulting Inc. now owns 136 shares of the company’s stock valued at $51,000 after purchasing an additional 30 shares during the period. MAI Capital Management raised its holdings in shares of Carvana by 1.8% in the 2nd quarter. MAI Capital Management now owns 1,757 shares of the company’s stock worth $592,000 after acquiring an additional 31 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its holdings in Carvana by 23.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 165 shares of the company’s stock worth $62,000 after buying an additional 31 shares in the last quarter. Finally, Finivi Inc. lifted its position in shares of Carvana by 4.6% during the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock valued at $295,000 after purchasing an additional 31 shares in the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q4 beat and strong growth — Carvana reported $4.22 EPS (well above consensus ~ $1.10) and $5.6B revenue (+58% YoY), plus management highlighted record unit economics and improved cash generation. This is the core bullish data supporting higher valuation scenarios. Press Release
• Positive Sentiment: Wall Street still has bulls — several firms have maintained buy/overweight ratings and multi-hundred dollar price targets (some above $500), indicating a meaningful long-term upside view remains among institutional analysts. Analyst Coverage Summary
• Neutral Sentiment: Mixed analyst adjustments — several shops trimmed 12‑month targets (e.g., Wedbush to $425, Gordon Haskett to $350) while keeping constructive ratings, creating dispersion in expected outcomes and adding to short‑term volatility. Gordon Haskett Note
• Negative Sentiment: Margin/guidance and “profitability speed bump” concerns — despite the headline EPS beat, several reporters and analysts flagged weakening profit‑metric trends, unclear 2026 visibility and sensitivity to gross profit per unit (GPU), which capped upside enthusiasm. That mixed message triggered the post‑earnings selloff. Seeking Alpha GDP/GPU Note
• Negative Sentiment: Analyst downgrade drove an early gap down — DA Davidson cut its target to $320 and shifted to neutral, prompting an intraday gap and adding to downward momentum. DA Davidson Gap Down
• Negative Sentiment: Regulatory/claims noise — a law firm notice saying it’s investigating potential securities fraud puts additional headline risk and can sap investor confidence until cleared. Investor Notice
• Negative Sentiment: Large insider selling flagged in filings — publicized insider dispositions in the quarter add to negative sentiment and raise governance/flow concerns for near‑term holders. Insider Activity

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.