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

Carvana Co. (NYSE:CVNA) gapped down before the market opened on Friday . The stock had previously closed at $199.56, but opened at $188.20. Carvana shares last traded at $190.01, with a volume of 1,823,458 shares.

Wall Street Analysts Forecast Growth

CVNA has been the subject of several recent analyst reports. JPMorgan Chase & Co. raised their target price on Carvana from $230.00 to $300.00 and gave the stock an “overweight” rating in a research report on Thursday, October 31st. Morgan Stanley upgraded Carvana from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $110.00 to $260.00 in a research report on Tuesday, November 5th. JMP Securities reiterated a “market outperform” rating and issued a $320.00 target price on shares of Carvana in a report on Monday, December 16th. Stephens reissued an “overweight” rating and issued a $300.00 price target on shares of Carvana in a research report on Thursday. Finally, Needham & Company LLC boosted their price objective on shares of Carvana from $300.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, December 9th. Eleven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $229.18.

Carvana Stock Down 4.4 %

The company has a debt-to-equity ratio of 18.99, a current ratio of 3.25 and a quick ratio of 2.12. The firm has a market capitalization of $39.61 billion, a P/E ratio of 19,098.10 and a beta of 3.32. The business has a 50 day moving average price of $237.18 and a 200 day moving average price of $179.97.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $0.64 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.41. The business had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.47 billion. The firm’s quarterly revenue was up 31.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.23 earnings per share. On average, analysts predict that Carvana Co. will post 0.76 earnings per share for the current year.

Insiders Place Their Bets

In other Carvana news, insider Ryan S. Keeton sold 24,845 shares of Carvana stock in a transaction on 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 sale, the insider now owns 151,029 shares in the company, valued at $37,440,089.10. The trade was a 14.13 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the stock in a transaction on Monday, October 7th. The shares were sold at an average price of $180.49, for a total transaction of $18,049,000.00. Following the completion of the transaction, the insider now owns 38,658,131 shares of the company’s stock, valued at approximately $6,977,406,064.19. This represents a 0.26 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,241,908 shares of company stock worth $253,935,785 in the last ninety days. Insiders own 17.18% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Sugarloaf Wealth Management LLC bought a new stake in shares of Carvana during the third quarter worth $32,000. Versant Capital Management Inc bought a new position in Carvana in the fourth quarter valued at about $42,000. Capital Performance Advisors LLP acquired a new stake in Carvana in the third quarter worth about $40,000. First Horizon Advisors Inc. increased its position in Carvana by 363.0% in the third quarter. First Horizon Advisors Inc. now owns 250 shares of the company’s stock worth $44,000 after purchasing an additional 196 shares during the period. Finally, Benjamin F. Edwards & Company Inc. bought a new stake in Carvana during the 2nd quarter worth about $51,000. 56.71% of the stock is currently owned by institutional investors and hedge funds.

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.