Carvana (NYSE:CVNA) Sets New 52-Week High – Should You Buy?

Carvana Co. (NYSE:CVNA) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $259.96 and last traded at $259.33, with a volume of 1092533 shares changing hands. The stock had previously closed at $248.38.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on CVNA shares. Jefferies Financial Group increased their price target on shares of Carvana from $150.00 to $185.00 and gave the stock a “hold” rating in a research report on Tuesday, October 22nd. Robert W. Baird raised their target price on Carvana from $160.00 to $240.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Stephens assumed coverage on Carvana in a research report on Thursday, September 12th. They set an “overweight” rating and a $190.00 target price on the stock. Evercore ISI upped their price target on Carvana from $186.00 to $190.00 and gave the stock an “in-line” rating in a research report on Wednesday, October 30th. Finally, Citigroup lifted their price objective on Carvana from $125.00 to $195.00 and gave the company a “neutral” rating in a research report on Thursday, October 3rd. Eleven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $217.71.

Carvana Stock Performance

The firm has a market cap of $53.85 billion, a PE ratio of 25,961.96 and a beta of 3.37. The firm’s 50 day simple moving average is $203.96 and its 200 day simple moving average is $154.47. The company has a current ratio of 3.25, a quick ratio of 2.12 and a debt-to-equity ratio of 18.99.

Carvana (NYSE:CVNA) last posted its 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 firm had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.47 billion. Carvana’s quarterly revenue was up 31.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.23 earnings per share. On average, research analysts forecast that Carvana Co. will post 0.76 EPS for the current fiscal year.

Insider Activity

In related news, CFO Mark W. Jenkins sold 20,000 shares of the stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $241.78, for a total value of $4,835,600.00. Following the completion of the transaction, the chief financial officer now owns 170,732 shares of the company’s stock, valued at approximately $41,279,582.96. This trade represents a 10.49 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gregory B. Sullivan sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $235.00, for a total value of $1,175,000.00. Following the sale, the director now directly owns 53,407 shares in the company, valued at $12,550,645. The trade was a 8.56 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,327,249 shares of company stock worth $421,876,322. 17.12% of the stock is currently owned by insiders.

Institutional Trading of Carvana

A number of institutional investors have recently bought and sold shares of the stock. Ridgewood Investments LLC purchased a new position in shares of Carvana during the second quarter valued at approximately $32,000. Sugarloaf Wealth Management LLC purchased a new position in Carvana during the 3rd quarter valued at $32,000. Summit Securities Group LLC grew its position in Carvana by 110.0% in the 2nd quarter. Summit Securities Group LLC now owns 300 shares of the company’s stock valued at $39,000 after acquiring an additional 3,300 shares during the last quarter. Capital Performance Advisors LLP bought a new position in Carvana in the 3rd quarter valued at $40,000. Finally, Fifth Third Bancorp increased its stake in Carvana by 450.8% in the second quarter. Fifth Third Bancorp now owns 336 shares of the company’s stock worth $43,000 after purchasing an additional 275 shares during the period. 56.71% of the stock is currently owned by institutional investors.

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.