Carvana (NYSE:CVNA) Trading 8.3% Higher – Time to Buy?

Carvana Co. (NYSE:CVNA) shares shot up 8.3% on Monday . The stock traded as high as $187.00 and last traded at $176.03. 1,880,589 shares changed hands during trading, a decline of 53% from the average session volume of 3,991,592 shares. The stock had previously closed at $162.57.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Bank of America decreased their price objective on shares of Carvana from $270.00 to $220.00 and set a “buy” rating on the stock in a research report on Friday, March 14th. Piper Sandler raised Carvana from a “neutral” rating to an “overweight” rating in a research report on Monday, March 31st. Stephens reiterated an “overweight” rating and issued a $300.00 price objective on shares of Carvana in a report on Monday, March 3rd. Citigroup boosted their target price on Carvana from $277.00 to $320.00 and gave the company a “buy” rating in a research note on Friday, February 21st. Finally, William Blair reaffirmed an “outperform” rating on shares of Carvana in a research note on Thursday, February 20th. Six analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $258.59.

Carvana Stock Performance

The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The stock has a market capitalization of $35.73 billion, a P/E ratio of 106.75 and a beta of 3.61. The business has a 50-day moving average price of $221.99 and a 200 day moving average price of $219.74.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, topping the consensus estimate of $0.29 by $0.27. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The business had revenue of $3.55 billion for the quarter, compared to the consensus estimate of $3.32 billion. As a group, sell-side analysts forecast that Carvana Co. will post 2.85 EPS for the current fiscal year.

Insider Activity at Carvana

In other news, COO Benjamin E. Huston sold 50,000 shares of the company’s stock in a transaction on Friday, March 14th. The stock was sold at an average price of $178.49, for a total transaction of $8,924,500.00. Following the transaction, the chief operating officer now directly owns 196,278 shares of the company’s stock, valued at $35,033,660.22. This represents a 20.30 % 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, insider Paul W. Breaux sold 1,362 shares of the stock in a transaction on Monday, February 10th. The shares were sold at an average price of $270.08, for a total value of $367,848.96. Following the sale, the insider now directly owns 153,240 shares in the company, valued at $41,387,059.20. This trade represents a 0.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 280,810 shares of company stock valued at $61,698,820. 17.12% of the stock is owned by insiders.

Institutional Trading of Carvana

A number of institutional investors have recently made changes to their positions in CVNA. Charles Schwab Investment Management Inc. lifted its position in Carvana by 9.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 462,962 shares of the company’s stock valued at $94,148,000 after purchasing an additional 39,089 shares during the period. Plato Investment Management Ltd lifted its holdings in shares of Carvana by 135.5% during the 4th quarter. Plato Investment Management Ltd now owns 5,204 shares of the company’s stock valued at $1,062,000 after buying an additional 2,994 shares during the period. Oak Thistle LLC boosted its stake in shares of Carvana by 115.9% in the 4th quarter. Oak Thistle LLC now owns 3,238 shares of the company’s stock worth $658,000 after buying an additional 1,738 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Carvana by 37.7% in the fourth quarter. Bank of New York Mellon Corp now owns 478,488 shares of the company’s stock worth $97,305,000 after acquiring an additional 130,942 shares during the period. Finally, Assenagon Asset Management S.A. increased its position in Carvana by 33.3% during the fourth quarter. Assenagon Asset Management S.A. now owns 382,607 shares of the company’s stock valued at $77,807,000 after acquiring an additional 95,497 shares during the last quarter. Hedge funds and other institutional investors 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.