Carvana (NYSE:CVNA) Shares Gap Up – What’s Next?

Carvana Co. (NYSE:CVNA) gapped up prior to trading on Monday . The stock had previously closed at $177.16, but opened at $187.97. Carvana shares last traded at $190.18, with a volume of 1,915,124 shares.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on CVNA shares. Bank of America raised their price target on Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Piper Sandler boosted their target price on shares of Carvana from $151.00 to $225.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Wedbush raised their price target on shares of Carvana from $150.00 to $175.00 and gave the stock a “neutral” rating in a research note on Monday, October 7th. Royal Bank of Canada raised shares of Carvana from a “sector perform” rating to an “outperform” rating and boosted their price objective for the company from $270.00 to $280.00 in a research report on Tuesday. Finally, Jefferies Financial Group raised their target price on shares of Carvana from $150.00 to $185.00 and gave the stock a “hold” rating in a research report on Tuesday, October 22nd. Nine investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat.com, Carvana has an average rating of “Moderate Buy” and a consensus target price of $241.94.

Carvana Trading Down 0.7 %

The company has a 50 day moving average of $236.14 and a two-hundred day moving average of $182.59. The stock has a market capitalization of $40.90 billion, a PE ratio of 19,719.72 and a beta of 3.38. The company has a debt-to-equity ratio of 18.99, a quick ratio of 2.12 and a current ratio of 3.25.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.23 by $0.41. The company had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.47 billion. The business’s revenue for the quarter was up 31.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.23 earnings per share. Sell-side analysts predict that Carvana Co. will post 0.76 EPS for the current year.

Insider Activity

In related news, COO Benjamin E. Huston sold 3,043 shares of the firm’s stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $240.00, for a total transaction of $730,320.00. Following the completion of the transaction, the chief operating officer now owns 218,686 shares of the company’s stock, valued at $52,484,640. This trade represents a 1.37 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Mark W. Jenkins sold 208,495 shares of the company’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $224.43, for a total transaction of $46,792,532.85. Following the completion of the sale, the chief financial officer now directly owns 90,732 shares in the company, valued at approximately $20,362,982.76. The trade was a 69.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,051,908 shares of company stock valued at $218,824,285 over the last ninety days. 17.12% of the stock is currently owned by insiders.

Institutional Trading of Carvana

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. FMR LLC raised its position in Carvana by 90.8% during the third quarter. FMR LLC now owns 12,361,790 shares of the company’s stock worth $2,152,311,000 after acquiring an additional 5,882,656 shares during the period. Whale Rock Capital Management LLC purchased a new stake in shares of Carvana during the third quarter worth about $162,953,000. Sylebra Capital LLC acquired a new position in shares of Carvana during the 2nd quarter worth about $67,686,000. Lord Abbett & CO. LLC lifted its stake in Carvana by 1,454.1% in the 3rd quarter. Lord Abbett & CO. LLC now owns 538,473 shares of the company’s stock valued at $93,754,000 after buying an additional 503,824 shares in the last quarter. Finally, Senator Investment Group LP purchased a new stake in Carvana during the 2nd quarter worth approximately $63,767,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

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.