Carvana (NYSE:CVNA) Shares Down 10.3% on Insider Selling

Carvana Co. (NYSE:CVNA)’s stock price fell 10.3% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $347.00 and last traded at $351.2930. 2,111,048 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 3,712,986 shares. The stock had previously closed at $391.69.

Specifically, insider Thomas Taira sold 1,047 shares of the business’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $398.54, for a total value of $417,271.38. Following the transaction, the insider owned 66,625 shares in the company, valued at $26,552,727.50. The trade was a 1.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Zacks Research cut Carvana from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 4th. UBS Group lifted their target price on shares of Carvana from $450.00 to $545.00 and gave the company a “buy” rating in a report on Wednesday, January 14th. Stephens boosted their price target on shares of Carvana from $454.00 to $519.00 and gave the stock an “overweight” rating in a research note on Friday, January 9th. Evercore raised their price objective on shares of Carvana from $425.00 to $430.00 in a research report on Tuesday, January 27th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $500.00 price objective on shares of Carvana in a report on Monday, November 17th. Nineteen analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and an average target price of $474.27.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Technical buy signal: a “power inflow” trading signal helped spark short-term buying and a small intraday bounce. Carvana Shares Rise 4% Following Key Trading Signal
• Positive Sentiment: Analyst support remains: several firms still rate CVNA a buy and some have high price targets, which provides a floor for buyers despite current volatility.
• Neutral Sentiment: Earnings focus: Carvana is due to report soon; Wall Street estimates and key metric previews mean the upcoming print/guidance — not new by itself — will likely determine the next directional move. Unveiling Carvana Q4 Outlook: Wall Street Estimates
• Neutral Sentiment: Valuation debate: several pieces weigh whether recent declines make CVNA attractive or still risky — useful for longer‑term investors but not an immediate catalyst. Is Carvana Now Attractive After Recent Share Price Declines?
• Negative Sentiment: $1B accounting questions: reports alleging roughly $1 billion in accounting irregularities surfaced and are now a primary driver of selling and heightened scrutiny. $1 Billion Accounting Questions Cloud Carvana’s 44% Sales Surge
• Negative Sentiment: Multiple law‑firm investigations: Pomerantz, Bragar Eagel & Squire and others have opened probes into Carvana, which raises litigation and disclosure risk that typically pressures shares. Pomerantz investigation alert Bragar Eagel & Squire investigation alert
• Negative Sentiment: Insider selling and retail sentiment shift: recent insider sales and a turn toward bearishness on social platforms have amplified selling pressure amid the news cycle. SEC Form 4 – insider sale by Thomas Taira
• Negative Sentiment: Short‑seller/research scrutiny: commentators warn that past related‑party and accounting questions keep downside risk elevated if earnings or disclosures disappoint. Carvana Can’t Stop Falling

Carvana Stock Down 0.2%

The firm’s 50-day simple moving average is $434.54 and its two-hundred day simple moving average is $382.03. The company has a debt-to-equity ratio of 1.63, a current ratio of 4.05 and a quick ratio of 2.55. The company has a market capitalization of $74.68 billion, a price-to-earnings ratio of 78.38, a price-to-earnings-growth ratio of 0.83 and a beta of 3.57.

Hedge Funds Weigh In On Carvana

Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada grew its holdings in Carvana by 40.8% in the first quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock valued at $6,243,000 after purchasing an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in shares of Carvana by 251.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after buying an additional 181 shares in the last quarter. Janney Montgomery Scott LLC boosted its position in shares of Carvana by 84.1% in the 2nd quarter. Janney Montgomery Scott LLC now owns 1,797 shares of the company’s stock worth $606,000 after buying an additional 821 shares in the last quarter. US Bancorp DE grew its stake in Carvana by 18.3% in the 2nd quarter. US Bancorp DE now owns 6,419 shares of the company’s stock valued at $2,163,000 after acquiring an additional 994 shares during the last quarter. Finally, Aberdeen Group plc increased its holdings in Carvana by 60.1% during the 2nd quarter. Aberdeen Group plc now owns 5,810 shares of the company’s stock valued at $1,958,000 after acquiring an additional 2,180 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

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.