Carvana (NYSE:CVNA) Trading Down 6.3% After Insider Selling

Carvana Co. (NYSE:CVNA)’s stock price dropped 6.3% on Wednesday after an insider sold shares in the company. The company traded as low as $209.55 and last traded at $207.79. Approximately 1,507,937 shares were traded during trading, a decline of 67% from the average daily volume of 4,540,763 shares. The stock had previously closed at $221.66.

Specifically, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $210.35, for a total value of $10,517,500.00. Following the sale, the chief operating officer now owns 146,278 shares of the company’s stock, valued at $30,769,577.30. This trade represents a 25.47 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Thomas Taira sold 27,593 shares of the company’s stock in a transaction dated Tuesday, March 25th. The stock was sold at an average price of $225.03, for a total transaction of $6,209,252.79. Following the completion of the transaction, the insider now owns 179,673 shares of the company’s stock, valued at approximately $40,431,815.19. This trade represents a 13.31 % decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Morgan Stanley raised Carvana from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $260.00 to $280.00 in a report on Tuesday. Citigroup increased their price target on Carvana from $277.00 to $320.00 and gave the stock a “buy” rating in a research note on Friday, February 21st. JMP Securities restated a “market outperform” rating and set a $320.00 price objective on shares of Carvana in a research note on Monday, December 16th. JPMorgan Chase & Co. decreased their target price on shares of Carvana from $365.00 to $325.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Piper Sandler upgraded shares of Carvana from a “neutral” rating to an “overweight” rating and set a $225.00 price target on the stock in a research report on Thursday, March 20th. Six investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat.com, Carvana currently has an average rating of “Moderate Buy” and a consensus target price of $261.53.

Carvana Trading Up 0.2 %

The company has a fifty day simple moving average of $227.77 and a 200-day simple moving average of $216.41. The stock has a market cap of $43.57 billion, a price-to-earnings ratio of 130.19 and a beta of 3.56. The company has a current ratio of 3.64, a quick ratio of 2.12 and a debt-to-equity ratio of 3.82.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, beating the consensus estimate of $0.29 by $0.27. Carvana had a net margin of 1.54% and a return on equity of 36.59%. The business had revenue of $3.55 billion during the quarter, compared to the consensus estimate of $3.32 billion. On average, research analysts forecast that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Institutional Trading of Carvana

Hedge funds and other institutional investors have recently modified their holdings of the business. Quent Capital LLC purchased a new stake in Carvana in the 4th quarter worth about $28,000. Global Retirement Partners LLC increased its holdings in shares of Carvana by 109.9% in the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after purchasing an additional 78 shares during the period. Rialto Wealth Management LLC purchased a new stake in shares of Carvana in the fourth quarter worth approximately $31,000. ORG Wealth Partners LLC acquired a new stake in shares of Carvana during the fourth quarter worth approximately $34,000. Finally, Versant Capital Management Inc purchased a new position in Carvana during the fourth quarter valued at approximately $42,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Company Profile

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.