Royal Bank of Canada Upgrades Carvana (NYSE:CVNA) to “Outperform”

Carvana (NYSE:CVNA) was upgraded by stock analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a research report issued to clients and investors on Tuesday, MarketBeat Ratings reports. The brokerage presently has a $280.00 price target on the stock, up from their previous price target of $270.00. Royal Bank of Canada’s price objective points to a potential upside of 42.13% from the company’s current price.

A number of other equities analysts have also recently weighed in on the company. Needham & Company LLC reissued a “buy” rating and issued a $330.00 price target on shares of Carvana in a report on Tuesday. Jefferies Financial Group boosted their target price on shares of Carvana from $150.00 to $185.00 and gave the company a “hold” rating in a research note on Tuesday, October 22nd. Citigroup raised their price target on shares of Carvana from $125.00 to $195.00 and gave the stock a “neutral” rating in a research note on Thursday, October 3rd. JPMorgan Chase & Co. lifted their price objective on Carvana from $230.00 to $300.00 and gave the company an “overweight” rating in a research report on Thursday, October 31st. Finally, JMP Securities reiterated a “market outperform” rating and set 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 company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $241.94.

Carvana Stock Performance

NYSE:CVNA opened at $197.00 on Tuesday. The company has a current ratio of 3.25, a quick ratio of 2.12 and a debt-to-equity ratio of 18.99. The company has a market capitalization of $40.90 billion, a P/E ratio of 19,719.72 and a beta of 3.38. The firm has a 50-day moving average price of $235.93 and a two-hundred day moving average price of $182.69. Carvana has a twelve month low of $40.21 and a twelve month high of $268.34.

Carvana (NYSE:CVNA) last issued its quarterly earnings data on Wednesday, October 30th. The company reported $0.64 earnings per share 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 analysts’ expectations of $3.47 billion. During the same period last year, the business earned $0.23 earnings per share. The company’s revenue for the quarter was up 31.8% on a year-over-year basis. As a group, research analysts expect that Carvana will post 0.76 earnings per share for the current fiscal year.

Insider Activity at Carvana

In other Carvana news, major shareholder Ernest C. Garcia II sold 100,000 shares of Carvana stock in a transaction on Friday, October 11th. The shares were sold at an average price of $192.55, for a total value of $19,255,000.00. Following the completion of the transaction, the insider now owns 38,258,131 shares of the company’s stock, valued at $7,366,603,124.05. The trade was a 0.26 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Ryan S. Keeton sold 24,845 shares of the stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $247.90, for a total transaction of $6,159,075.50. Following the sale, the insider now directly owns 151,029 shares in the company, valued at $37,440,089.10. This trade represents a 14.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,051,908 shares of company stock valued at $218,824,285 over the last ninety days. Corporate insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

Institutional investors have recently modified their holdings of the business. Sugarloaf Wealth Management LLC bought a new position in Carvana in the third quarter worth about $32,000. Versant Capital Management Inc bought a new position in shares of Carvana during the fourth quarter valued at approximately $42,000. Capital Performance Advisors LLP acquired a new stake in shares of Carvana during the 3rd quarter worth approximately $40,000. First Horizon Advisors Inc. lifted its holdings in shares of Carvana by 363.0% in the 3rd 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 last quarter. Finally, Benjamin F. Edwards & Company Inc. acquired a new position in Carvana during the 2nd quarter valued at approximately $51,000. 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.