Carvana (NYSE:CVNA) Shares Gap Up – Still a Buy?

Carvana Co. (NYSE:CVNA) gapped up before the market opened on Thursday . The stock had previously closed at $176.09, but opened at $180.47. Carvana shares last traded at $189.28, with a volume of 1,083,337 shares traded.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Robert W. Baird boosted their price objective on shares of Carvana from $200.00 to $250.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. Wedbush set a $250.00 price objective on shares of Carvana and gave the stock a “neutral” rating in a research note on Wednesday, February 19th. Piper Sandler upgraded shares of Carvana from a “neutral” rating to an “overweight” rating and set a $225.00 price objective for the company in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $340.00 price objective on shares of Carvana in a research note on Friday, March 7th. Finally, Wells Fargo & Company reduced their price objective on shares of Carvana from $300.00 to $275.00 and set an “overweight” rating for the company in a research note on Monday, January 6th. Seven analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat, Carvana presently has an average rating of “Moderate Buy” and a consensus target price of $262.71.

Carvana Price Performance

The stock has a market cap of $40.80 billion, a price-to-earnings ratio of 121.90 and a beta of 3.56. The stock’s 50 day moving average price is $227.57 and its two-hundred day moving average price is $214.47. The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82.

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

Insider Buying and Selling

In other Carvana news, CFO Mark W. Jenkins sold 28,422 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $288.85, for a total transaction of $8,209,694.70. Following the transaction, the chief financial officer now directly owns 219,962 shares of the company’s stock, valued at $63,536,023.70. This trade represents a 11.44 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction on Friday, March 14th. The shares were 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 in the company, valued at approximately $35,033,660.22. The trade was a 20.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 119,784 shares of company stock valued at $27,524,344. Corporate insiders own 17.12% of the company’s stock.

Hedge Funds Weigh In On Carvana

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quent Capital LLC purchased a new position in Carvana during the fourth quarter valued at $28,000. Global Retirement Partners LLC raised its position in shares of Carvana by 109.9% in the fourth quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after buying an additional 78 shares during the last quarter. Rialto Wealth Management LLC acquired a new stake in shares of Carvana in the fourth quarter valued at about $31,000. ORG Wealth Partners LLC acquired a new stake in shares of Carvana in the fourth quarter valued at about $34,000. Finally, Versant Capital Management Inc acquired a new stake in shares of Carvana in the fourth quarter valued at about $42,000. 56.71% of the stock is owned by hedge funds and other institutional investors.

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.