Carvana (NYSE:CVNA) Sets New 52-Week High on Strong Earnings

Carvana Co. (NYSE:CVNA)’s stock price reached a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $293.62 and last traded at $288.50, with a volume of 6188955 shares. The stock had previously closed at $259.17.

The company reported $1.51 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.76. The firm had revenue of $4.23 billion during the quarter, compared to analysts’ expectations of $3.94 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The firm’s quarterly revenue was up 38.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.23 EPS.

Analysts Set New Price Targets

CVNA has been the subject of several research reports. Piper Sandler boosted their price objective on shares of Carvana from $225.00 to $230.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 22nd. Citigroup raised their price objective on Carvana from $280.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday. Needham & Company LLC reaffirmed a “buy” rating and issued a $340.00 target price on shares of Carvana in a research report on Thursday. Wells Fargo & Company raised their target price on Carvana from $290.00 to $310.00 and gave the company an “overweight” rating in a report on Thursday. Finally, William Blair restated an “outperform” rating on shares of Carvana in a report on Thursday, February 20th. Six research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $268.59.

Insiders Place Their Bets

In other Carvana news, insider Paul W. Breaux sold 1,362 shares of Carvana stock in a transaction on Monday, February 10th. The shares were sold at an average price of $270.08, for a total transaction of $367,848.96. Following the sale, the insider now owns 153,240 shares in the company, valued at $41,387,059.20. The trade was a 0.88 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Thomas Taira sold 5,000 shares of the firm’s stock in a transaction dated Thursday, May 1st. The stock was sold at an average price of $260.00, for a total transaction of $1,300,000.00. Following the transaction, the insider now directly owns 171,509 shares of the company’s stock, valued at $44,592,340. The trade was a 2.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 348,560 shares of company stock worth $73,806,520. 17.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Carvana

A number of hedge funds have recently modified their holdings of CVNA. Charles Schwab Investment Management Inc. boosted its stake in Carvana by 6.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 490,874 shares of the company’s stock valued at $102,632,000 after buying an additional 27,912 shares in the last quarter. ASR Vermogensbeheer N.V. acquired a new stake in shares of Carvana in the 1st quarter valued at $1,609,000. Primecap Management Co. CA grew its holdings in shares of Carvana by 13.8% in the 1st quarter. Primecap Management Co. CA now owns 199,100 shares of the company’s stock worth $41,628,000 after purchasing an additional 24,200 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Carvana by 9.7% during the 1st quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company’s stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares in the last quarter. Finally, Strategic Investment Solutions Inc. IL bought a new position in Carvana during the 1st quarter valued at about $90,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Performance

The stock has a market capitalization of $57.19 billion, a price-to-earnings ratio of 170.87 and a beta of 3.61. The stock’s 50-day simple moving average is $209.94 and its 200 day simple moving average is $227.00. The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82.

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.