Carvana (NYSE:CVNA) Shares Gap Down – Should You Sell?

Carvana Co. (NYSE:CVNA)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $281.82, but opened at $264.89. Carvana shares last traded at $244.07, with a volume of 3,544,265 shares changing hands.

Analyst Upgrades and Downgrades

CVNA has been the topic of a number of research reports. Citigroup upped their target price on shares of Carvana from $277.00 to $320.00 and gave the company a “buy” rating in a research report on Friday. JPMorgan Chase & Co. upped their price target on Carvana from $300.00 to $350.00 and gave the stock an “overweight” rating in a research report on Friday, January 31st. Royal Bank of Canada raised their price target on Carvana from $280.00 to $320.00 and gave the company an “outperform” rating in a report on Thursday. William Blair reaffirmed an “outperform” rating on shares of Carvana in a report on Thursday. Finally, Needham & Company LLC raised their price target on Carvana from $330.00 to $340.00 and gave the stock a “buy” rating in a research report on Thursday. Nine investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. According to MarketBeat, Carvana presently has a consensus rating of “Moderate Buy” and an average target price of $265.06.

Carvana Price Performance

The company has a market capitalization of $46.33 billion, a PE ratio of 142.13 and a beta of 3.37. The firm has a fifty day moving average of $234.35 and a two-hundred day moving average of $207.79. 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 earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share for the quarter, beating 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 company had revenue of $3.55 billion during the quarter, compared to analysts’ expectations of $3.32 billion. Research analysts anticipate that Carvana Co. will post 2.85 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Mark W. Jenkins sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $275.68, for a total value of $5,513,600.00. Following the transaction, the chief financial officer now directly owns 199,962 shares of the company’s stock, valued at approximately $55,125,524.16. The trade was a 9.09 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul W. Breaux sold 1,362 shares of the business’s stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $270.08, for a total value of $367,848.96. Following the completion of the transaction, the insider now directly owns 153,240 shares in the company, valued at approximately $41,387,059.20. This represents a 0.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 173,629 shares of company stock valued at $44,833,799. Corporate insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

Several hedge funds have recently bought and sold shares of CVNA. Eagle Asset Management Inc. purchased a new stake in Carvana in the third quarter valued at about $50,531,000. Oak Thistle LLC grew its holdings in Carvana by 115.9% during the fourth quarter. Oak Thistle LLC now owns 3,238 shares of the company’s stock worth $658,000 after acquiring an additional 1,738 shares during the period. Assenagon Asset Management S.A. grew its holdings in Carvana by 33.3% during the fourth quarter. Assenagon Asset Management S.A. now owns 382,607 shares of the company’s stock worth $77,807,000 after acquiring an additional 95,497 shares during the period. Central Pacific Bank Trust Division acquired a new stake in Carvana during the fourth quarter worth about $609,000. Finally, Calamos Advisors LLC acquired a new stake in Carvana in the fourth quarter valued at approximately $1,106,000. 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.