Carvana (NYSE:CVNA) Trading Down 9.5% – What’s Next?

Carvana Co. (NYSE:CVNA) dropped 9.5% on Monday . The stock traded as low as $170.11 and last traded at $170.50. Approximately 1,037,508 shares were traded during trading, a decline of 73% from the average daily volume of 3,812,941 shares. The stock had previously closed at $188.47.

Wall Street Analysts Forecast Growth

CVNA has been the topic of several research analyst reports. JPMorgan Chase & Co. upped their price objective on Carvana from $350.00 to $365.00 and gave the company an “overweight” rating in a research report on Friday, March 7th. Wedbush set a $250.00 price objective on Carvana and gave the company a “neutral” rating in a research report on Wednesday, February 19th. Wells Fargo & Company cut their price objective on Carvana from $300.00 to $275.00 and set an “overweight” rating on the stock in a research report on Monday, January 6th. Needham & Company LLC reaffirmed a “buy” rating and issued a $340.00 price objective on shares of Carvana in a research report on Friday, March 7th. Finally, William Blair reissued an “outperform” rating on shares of Carvana in a research report on Thursday, February 20th. Eight research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to data from MarketBeat, Carvana has an average rating of “Moderate Buy” and an average target price of $265.65.

Carvana Stock Performance

The business has a 50 day simple moving average of $230.01 and a 200 day simple moving average of $213.89. The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82. The company has a market capitalization of $36.76 billion, a PE ratio of 109.83 and a beta of 3.56.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, beating analysts’ consensus estimates 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. Equities research analysts predict that Carvana Co. will post 2.85 EPS for the current fiscal year.

Insider Buying and Selling at Carvana

In other news, CFO Mark W. Jenkins sold 28,422 shares of the stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $288.85, for a total value 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 approximately $63,536,023.70. This represents a 11.44 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Ryan S. Keeton sold 24,845 shares of the stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $247.90, for a total value of $6,159,075.50. Following the completion of the transaction, the insider now directly owns 151,029 shares in the company, valued at $37,440,089.10. This represents a 14.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 94,629 shares of company stock worth $24,758,919. 17.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Siemens Fonds Invest GmbH acquired a new position in shares of Carvana in the fourth quarter valued at about $839,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Carvana during the fourth quarter worth about $36,527,000. Brucke Financial Inc. acquired a new stake in Carvana during the fourth quarter worth about $415,000. Mackenzie Financial Corp acquired a new stake in Carvana during the fourth quarter worth about $1,153,000. Finally, Toronto Dominion Bank acquired a new stake in Carvana during the fourth quarter worth about $3,124,000. 56.71% of the stock is owned by institutional investors and hedge funds.

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.