Carvana (NYSE:CVNA) Shares Gap Down – What’s Next?

Carvana Co. (NYSE:CVNA) 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 traded.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Stephens reaffirmed an “overweight” rating and set a $300.00 price objective on shares of Carvana in a research report on Thursday, February 6th. Wedbush restated a “neutral” rating and set a $250.00 price target on shares of Carvana in a research note on Thursday, February 6th. Citigroup upgraded Carvana from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $195.00 to $277.00 in a research report on Wednesday, January 8th. Morgan Stanley upgraded Carvana from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $110.00 to $260.00 in a research report on Tuesday, November 5th. Finally, JMP Securities reaffirmed a “market outperform” rating and issued a $320.00 target price on shares of Carvana in a research report on Monday, December 16th. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to MarketBeat, Carvana has a consensus rating of “Moderate Buy” and a consensus target price of $252.82.

Carvana Price Performance

The stock has a fifty day moving average of $234.84 and a 200-day moving average of $206.90. The firm has a market capitalization of $49.27 billion, a P/E ratio of 23,902.10 and a beta of 3.37. The company has a quick ratio of 2.12, a current ratio of 3.25 and a debt-to-equity ratio of 18.99.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.27. The company had revenue of $3.55 billion during the quarter, compared to the consensus estimate of $3.32 billion. Equities analysts predict that Carvana Co. will post 0.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other Carvana news, CFO Mark W. Jenkins sold 10,000 shares of Carvana stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $255.07, for a total transaction of $2,550,700.00. Following the completion of the sale, the chief financial officer now owns 189,761 shares of the company’s stock, valued at approximately $48,402,338.27. The trade was a 5.01 % 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 Daniel J. Gill sold 44,000 shares of the stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $259.47, for a total value of $11,416,680.00. Following the completion of the transaction, the insider now directly owns 191,225 shares in the company, valued at approximately $49,617,150.75. This trade represents a 18.71 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 173,629 shares of company stock valued at $44,833,799. 17.12% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Carvana

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CVNA. FMR LLC boosted its holdings in Carvana by 90.8% during the third quarter. FMR LLC now owns 12,361,790 shares of the company’s stock worth $2,152,311,000 after buying an additional 5,882,656 shares during the last quarter. Whale Rock Capital Management LLC acquired a new stake in shares of Carvana in the 3rd quarter valued at approximately $162,953,000. Norges Bank bought a new position in Carvana during the 4th quarter worth approximately $179,364,000. Vanguard Group Inc. grew its holdings in Carvana by 5.6% during the fourth quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company’s stock valued at $2,323,463,000 after purchasing an additional 610,234 shares during the period. Finally, Castle Hook Partners LP bought a new stake in Carvana in the fourth quarter valued at approximately $116,020,000. 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.