Carvana (NYSE:CVNA) Shares Gap Down on Insider Selling

Carvana Co. (NYSE:CVNA - Get Free Report) shares gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $220.44, but opened at $203.00. Carvana shares last traded at $194.71, with a volume of 1,531,796 shares traded.

Specifically, COO Benjamin E. Huston sold 50,000 shares of the company's stock in a transaction on Monday, April 7th. The stock was sold at an average price of $150.90, for a total value of $7,545,000.00. Following the sale, the chief operating officer now directly owns 123,803 shares in the company, valued at $18,681,872.70. This represents a 28.77 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. JMP Securities reduced their target price on shares of Carvana from $340.00 to $275.00 and set a "market outperform" rating on the stock in a research report on Wednesday, April 9th. Bank of America dropped their price objective on Carvana from $270.00 to $220.00 and set a "buy" rating on the stock in a research note on Friday, March 14th. Evercore ISI decreased their target price on Carvana from $250.00 to $240.00 and set an "in-line" rating for the company in a research note on Tuesday, March 11th. Citigroup dropped their price target on Carvana from $320.00 to $280.00 and set a "buy" rating on the stock in a research report on Tuesday, April 8th. Finally, DA Davidson increased their target price on Carvana from $220.00 to $260.00 and gave the stock a "neutral" rating in a research note on Thursday, February 20th. Six research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat, Carvana has a consensus rating of "Moderate Buy" and a consensus price target of $253.59.

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Carvana Price Performance

The company has a current ratio of 3.64, a quick ratio of 2.12 and a debt-to-equity ratio of 3.82. The firm has a market capitalization of $43.67 billion, a PE ratio of 130.48 and a beta of 3.61. The business has a 50-day moving average of $216.20 and a 200 day moving average of $220.58.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, February 19th. The company reported $0.56 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.27. Carvana had a net margin of 1.54% and a return on equity of 36.59%. The business had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.32 billion. As a group, research analysts anticipate that Carvana Co. will post 2.85 EPS for the current fiscal year.

Institutional Investors Weigh In On Carvana

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Carvana during the fourth quarter worth approximately $179,364,000. Vanguard Group Inc. raised its position in Carvana by 5.6% in the 4th quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company's stock worth $2,323,463,000 after purchasing an additional 610,234 shares during the period. Castle Hook Partners LP purchased a new position in Carvana in the 4th quarter worth $116,020,000. Lord Abbett & CO. LLC lifted its stake in Carvana by 1,454.1% in the third quarter. Lord Abbett & CO. LLC now owns 538,473 shares of the company's stock worth $93,754,000 after purchasing an additional 503,824 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its position in Carvana by 89.8% during the fourth quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company's stock valued at $207,086,000 after buying an additional 481,912 shares during the period. Hedge funds and other 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.