Carvana (NYSE:CVNA) Stock Rating Lowered by Wall Street Zen

Wall Street Zen lowered shares of Carvana (NYSE:CVNA) from a buy rating to a hold rating in a report released on Friday.

A number of other research firms have also recently commented on CVNA. Gordon Haskett initiated coverage on Carvana in a research note on Monday, July 14th. They issued a “hold” rating and a $329.00 price target for the company. Royal Bank Of Canada increased their price target on Carvana from $400.00 to $460.00 and gave the company an “outperform” rating in a research note on Thursday, July 31st. Stephens reiterated an “overweight” rating and issued a $440.00 price target on shares of Carvana in a research note on Tuesday, September 23rd. Bank of America increased their price target on Carvana from $375.00 to $425.00 and gave the company a “buy” rating in a research note on Thursday, July 31st. Finally, Oppenheimer upgraded Carvana from a “market perform” rating to an “outperform” rating and set a $450.00 price target for the company in a research note on Friday, July 25th. Thirteen equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $404.94.

Carvana Price Performance

Shares of CVNA stock opened at $376.56 on Friday. Carvana has a 1-year low of $148.25 and a 1-year high of $413.33. The stock’s 50-day moving average is $364.64 and its 200 day moving average is $309.02. The company has a market cap of $81.04 billion, a P/E ratio of 94.38, a PEG ratio of 1.29 and a beta of 3.55. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58.

Carvana (NYSE:CVNA) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%.The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same quarter last year, the company earned ($0.05) earnings per share. The firm’s revenue for the quarter was up 41.9% compared to the same quarter last year. Research analysts predict that Carvana will post 2.85 earnings per share for the current fiscal year.

Insider Activity

In other news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm’s stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $352.36, for a total value of $35,236,000.00. Following the completion of the transaction, the insider directly owned 36,237,346 shares in the company, valued at $12,768,591,236.56. This trade represents a 0.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder Ernest C. Garcia II sold 93,376 shares of the firm’s stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the completion of the transaction, the insider owned 6,624 shares of the company’s stock, valued at approximately $2,610,915.84. The trade was a 93.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,307,066 shares of company stock valued at $827,792,454. Company insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Hilltop National Bank purchased a new position in Carvana during the second quarter valued at approximately $25,000. SJS Investment Consulting Inc. raised its position in Carvana by 960.0% during the second quarter. SJS Investment Consulting Inc. now owns 106 shares of the company’s stock valued at $36,000 after acquiring an additional 96 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in Carvana during the second quarter valued at approximately $38,000. LRI Investments LLC purchased a new position in Carvana during the second quarter valued at approximately $42,000. Finally, Brooklyn Investment Group raised its position in Carvana by 961.5% during the first quarter. Brooklyn Investment Group now owns 138 shares of the company’s stock valued at $29,000 after acquiring an additional 125 shares in the last quarter. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

About Carvana

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.