Carvana (NYSE:CVNA) Trading Down 6.6% – Here’s What Happened

Carvana Co. (NYSE:CVNA)’s share price dropped 6.6% on Friday . The company traded as low as $231.80 and last traded at $231.31. Approximately 1,913,937 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 3,918,422 shares. The stock had previously closed at $247.72.

Wall Street Analyst Weigh In

CVNA has been the topic of several research reports. JPMorgan Chase & Co. boosted their price objective on shares of Carvana from $300.00 to $350.00 and gave the stock an “overweight” rating in a report on Friday, January 31st. Evercore ISI lifted their target price on Carvana from $240.00 to $245.00 and gave the stock an “in-line” rating in a research report on Tuesday, December 3rd. DA Davidson upped their price target on Carvana from $220.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday. Royal Bank of Canada lifted their price objective on Carvana from $280.00 to $320.00 and gave the stock an “outperform” rating in a report on Thursday. Finally, JMP Securities restated a “market outperform” rating and set a $320.00 price objective on shares of Carvana in a research report on Monday, December 16th. Nine investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $265.06.

Carvana Price Performance

The company has a market cap of $46.33 billion, a price-to-earnings ratio of 142.13 and a beta of 3.37. The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The company’s 50 day moving average price is $234.35 and its 200 day moving average price is $208.28.

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. The firm had revenue of $3.55 billion for the quarter, compared to analyst estimates of $3.32 billion. Carvana had a net margin of 1.54% and a return on equity of 36.59%. On average, equities research analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Ryan S. Keeton sold 24,845 shares of the company’s stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $247.90, for a total transaction of $6,159,075.50. Following the transaction, the insider now owns 151,029 shares in the company, valued at $37,440,089.10. This represents a 14.13 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark W. Jenkins sold 28,422 shares of the firm’s stock in a transaction dated 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 completion of the sale, the chief financial officer now owns 219,962 shares of the company’s stock, valued at $63,536,023.70. The trade was a 11.44 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 173,629 shares of company stock worth $44,833,799 in the last three months. Insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CVNA. Quent Capital LLC bought a new position in Carvana in the 4th quarter valued at $28,000. Global Retirement Partners LLC lifted its stake in shares of Carvana by 109.9% during the fourth quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after acquiring an additional 78 shares during the period. Rialto Wealth Management LLC acquired a new position in shares of Carvana during the fourth quarter valued at $31,000. ORG Wealth Partners LLC bought a new position in Carvana in the fourth quarter valued at about $34,000. Finally, Versant Capital Management Inc acquired a new stake in Carvana in the fourth quarter worth about $42,000. 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.