Carvana (NYSE:CVNA) Stock Rating Upgraded by Royal Bank of Canada

Carvana (NYSE:CVNA) was upgraded by equities research analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a report issued on Tuesday,Briefing.com Automated Import reports. The brokerage presently has a $280.00 price target on the stock, up from their prior price target of $270.00. Royal Bank of Canada’s target price would indicate a potential upside of 48.27% from the company’s current price.

A number of other equities analysts have also commented on CVNA. JMP Securities reaffirmed a “market outperform” rating and set a $320.00 target price on shares of Carvana in a research report on Monday, December 16th. Bank of America raised their price objective on Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. JPMorgan Chase & Co. upped their target price on Carvana from $230.00 to $300.00 and gave the stock an “overweight” rating in a report on Thursday, October 31st. Stephens restated an “overweight” rating and set a $300.00 price target on shares of Carvana in a research note on Thursday, January 2nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $330.00 price objective on shares of Carvana in a report on Tuesday. Ten investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Carvana currently has an average rating of “Hold” and an average price target of $237.12.

Carvana Trading Up 6.6 %

Shares of NYSE CVNA opened at $188.84 on Tuesday. The business’s 50 day moving average price is $236.34 and its 200-day moving average price is $181.99. The company has a market cap of $39.21 billion, a price-to-earnings ratio of 18,902.90 and a beta of 3.38. The company has a debt-to-equity ratio of 18.99, a quick ratio of 2.12 and a current ratio of 3.25. Carvana has a fifty-two week low of $40.21 and a fifty-two week high of $268.34.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, October 30th. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.41. The company had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.47 billion. The firm’s revenue for the quarter was up 31.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.23 earnings per share. On average, sell-side analysts expect that Carvana will post 0.76 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Mark W. Jenkins sold 208,495 shares of Carvana stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $224.43, for a total value of $46,792,532.85. Following the completion of the sale, the chief financial officer now directly owns 90,732 shares in the company, valued at $20,362,982.76. This trade represents a 69.68 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the company’s stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $190.47, for a total transaction of $19,047,000.00. Following the transaction, the insider now owns 38,258,131 shares in the company, valued at $7,287,026,211.57. The trade was a 0.26 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,151,908 shares of company stock worth $237,894,285 in the last ninety days. 17.12% of the stock is owned by insiders.

Institutional Investors Weigh In On Carvana

A number of large investors have recently made changes to their positions in CVNA. Sugarloaf Wealth Management LLC purchased a new position in Carvana in the 3rd quarter worth $32,000. Versant Capital Management Inc purchased a new position in shares of Carvana in the fourth quarter worth about $42,000. Capital Performance Advisors LLP acquired a new stake in shares of Carvana during the third quarter worth about $40,000. First Horizon Advisors Inc. boosted its position in Carvana by 363.0% in the third quarter. First Horizon Advisors Inc. now owns 250 shares of the company’s stock valued at $44,000 after buying an additional 196 shares during the last quarter. Finally, Benjamin F. Edwards & Company Inc. acquired a new position in Carvana in the 2nd quarter worth approximately $51,000. 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.