Carvana (NYSE:CVNA) Shares Gap Up on Better-Than-Expected Earnings

Carvana Co. (NYSE:CVNA) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $207.31, but opened at $238.20. Carvana shares last traded at $245.22, with a volume of 2,048,787 shares traded.

The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.41. The business had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.47 billion. Carvana’s quarterly revenue was up 31.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.23 EPS.

Analyst Ratings Changes

CVNA has been the topic of several recent research reports. Bank of America upped their price target on shares of Carvana from $185.00 to $210.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Piper Sandler upped their target price on Carvana from $151.00 to $225.00 and gave the stock a “neutral” rating in a research note on Thursday. Morgan Stanley lifted their price target on Carvana from $75.00 to $110.00 and gave the company an “underweight” rating in a research report on Thursday, August 1st. JMP Securities upped their price objective on Carvana from $200.00 to $320.00 and gave the stock a “market outperform” rating in a research report on Thursday. Finally, Jefferies Financial Group lifted their target price on shares of Carvana from $150.00 to $185.00 and gave the company a “hold” rating in a report on Tuesday, October 22nd. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $208.88.

Insider Activity

In related news, major shareholder Ernest C. Garcia II sold 15,814 shares of the stock in a transaction on Friday, October 25th. The stock was sold at an average price of $201.16, for a total value of $3,181,144.24. Following the completion of the transaction, the insider now directly owns 37,442,317 shares of the company’s stock, valued at approximately $7,531,896,487.72. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Carvana news, major shareholder Ernest C. Garcia II sold 15,814 shares of the stock in a transaction dated Friday, October 25th. The shares were sold at an average price of $201.16, for a total value of $3,181,144.24. Following the completion of the sale, the insider now owns 37,442,317 shares in the company, valued at approximately $7,531,896,487.72. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ira J. Platt sold 664 shares of the business’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $150.00, for a total value of $99,600.00. Following the transaction, the director now owns 30,227 shares in the company, valued at approximately $4,534,050. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,705,891 shares of company stock worth $455,601,985 over the last quarter. 17.12% of the stock is currently owned by corporate insiders.

Institutional Trading of Carvana

A number of hedge funds and other institutional investors have recently modified their holdings of CVNA. Ridgewood Investments LLC purchased a new stake in shares of Carvana in the second quarter valued at about $32,000. Sugarloaf Wealth Management LLC purchased a new stake in shares of Carvana in the 3rd quarter valued at approximately $32,000. Summit Securities Group LLC increased its holdings in shares of Carvana by 110.0% during the 2nd quarter. Summit Securities Group LLC now owns 300 shares of the company’s stock worth $39,000 after buying an additional 3,300 shares during the last quarter. Fifth Third Bancorp increased its holdings in shares of Carvana by 450.8% during the 2nd quarter. Fifth Third Bancorp now owns 336 shares of the company’s stock worth $43,000 after buying an additional 275 shares during the last quarter. Finally, Benjamin F. Edwards & Company Inc. purchased a new stake in shares of Carvana during the 2nd quarter valued at approximately $51,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Up 19.3 %

The business has a fifty day moving average of $172.95 and a 200 day moving average of $136.66. The company has a debt-to-equity ratio of 47.20, a current ratio of 3.11 and a quick ratio of 2.02. The stock has a market capitalization of $50.10 billion, a price-to-earnings ratio of 108.47 and a beta of 3.44.

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.