Carvana Target of Unusually High Options Trading (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) saw some unusual options trading activity on Thursday. Traders bought 111,176 put options on the company. This is an increase of approximately 49% compared to the typical volume of 74,809 put options.

Carvana Stock Performance

Shares of CVNA opened at $185.41 on Friday. The firm has a market cap of $39.52 billion, a price-to-earnings ratio of 118.10 and a beta of 3.56. 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 business’s 50 day moving average is $227.61 and its two-hundred day moving average is $214.18. Carvana has a 52-week low of $67.61 and a 52-week high of $292.84.

Carvana (NYSE:CVNA) last posted its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.27. The firm had revenue of $3.55 billion for the quarter, compared to analysts’ expectations of $3.32 billion. Carvana had a net margin of 1.54% and a return on equity of 36.59%. Analysts forecast that Carvana will post 2.85 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on CVNA shares. Citigroup raised their price objective on Carvana from $277.00 to $320.00 and gave the stock a “buy” rating in a report on Friday, February 21st. JPMorgan Chase & Co. lifted their price target on shares of Carvana from $350.00 to $365.00 and gave the company an “overweight” rating in a research report on Friday, March 7th. DA Davidson boosted their price objective on shares of Carvana from $220.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. Piper Sandler upgraded shares of Carvana from a “neutral” rating to an “overweight” rating and set a $225.00 target price on the stock in a report on Thursday. Finally, William Blair reiterated an “outperform” rating on shares of Carvana in a report on Thursday, February 20th. Seven analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $262.71.

Insider Activity

In other news, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction on Friday, March 14th. The shares were sold at an average price of $178.49, for a total transaction of $8,924,500.00. Following the completion of the sale, the chief operating officer now directly owns 196,278 shares of the company’s stock, valued at $35,033,660.22. The trade was a 20.30 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Paul W. Breaux sold 1,362 shares of the company’s stock in a transaction on Monday, February 10th. The stock was sold at an average price of $270.08, for a total value of $367,848.96. Following the sale, the insider now owns 153,240 shares of the company’s stock, valued at approximately $41,387,059.20. The trade was a 0.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 119,784 shares of company stock valued at $27,524,344 in the last 90 days. 17.12% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Carvana

Several large investors have recently modified their holdings of the stock. Quent Capital LLC bought a new stake in Carvana in the fourth quarter valued at about $28,000. Global Retirement Partners LLC increased its holdings in shares of Carvana by 109.9% in the 4th 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 last quarter. Rialto Wealth Management LLC acquired a new stake in shares of Carvana during the 4th quarter valued at approximately $31,000. ORG Wealth Partners LLC bought a new position in Carvana during the fourth quarter worth $34,000. Finally, Versant Capital Management Inc acquired a new position in Carvana in the fourth quarter worth $42,000. Institutional investors own 56.71% of the company’s stock.

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.