Carvana (NYSE:CVNA) Stock Price Down 5.2% After Insider Selling

Carvana Co. (NYSE:CVNA) shares dropped 5.2% during trading on Thursday following insider selling activity. The stock traded as low as $322.62 and last traded at $322.73. Approximately 2,663,688 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 3,930,733 shares. The stock had previously closed at $340.32.

Specifically, major shareholder Ernest C. Garcia II sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $330.27, for a total value of $16,513,500.00. Following the completion of the sale, the insider now owns 36,992,317 shares in the company, valued at approximately $12,217,452,535.59. The trade was a 0.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ryan S. Keeton sold 11,276 shares of the company’s stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $340.68, for a total value of $3,841,507.68. Following the sale, the insider now owns 136,628 shares of the company’s stock, valued at $46,546,427.04. This trade represents a 7.62% decrease in their position. The disclosure for this sale can be found here. In other Carvana news, CEO Ernest C. Garcia III sold 4,552 shares of the company’s stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $333.23, for a total value of $1,516,862.96. Following the sale, the chief executive officer now owns 762,724 shares of the company’s stock, valued at approximately $254,162,518.52. This represents a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Wall Street Analyst Weigh In

CVNA has been the topic of a number of research reports. Morgan Stanley raised their price objective on Carvana from $280.00 to $290.00 and gave the stock an “overweight” rating in a report on Thursday, May 15th. Robert W. Baird boosted their price objective on Carvana from $200.00 to $275.00 and gave the company a “neutral” rating in a research report on Thursday, May 8th. Evercore ISI cut their target price on Carvana from $250.00 to $240.00 and set an “in-line” rating on the stock in a research note on Tuesday, March 11th. Citigroup boosted their price objective on Carvana from $280.00 to $325.00 and gave the stock a “buy” rating in a research note on Thursday, May 8th. Finally, Wells Fargo & Company boosted their target price on Carvana from $290.00 to $310.00 and gave the stock an “overweight” rating in a research report on Thursday, May 8th. Six equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat.com, Carvana has a consensus rating of “Moderate Buy” and a consensus target price of $280.35.

Carvana Price Performance

The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The firm has a market capitalization of $68.29 billion, a P/E ratio of 203.11 and a beta of 3.65. The company has a 50-day moving average price of $270.50 and a 200-day moving average price of $240.77.

Carvana (NYSE:CVNA) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.76. The business had revenue of $4.23 billion for the quarter, compared to analyst estimates of $3.94 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The firm’s revenue was up 38.3% on a year-over-year basis. During the same period last year, the company earned $0.23 EPS. On average, sell-side analysts predict that Carvana Co. will post 2.85 earnings per share for the current year.

Institutional Trading of Carvana

Several hedge funds have recently added to or reduced their stakes in the business. Strs Ohio acquired a new stake in Carvana during the 1st quarter worth $852,000. Geneos Wealth Management Inc. raised its stake in shares of Carvana by 251.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock valued at $53,000 after purchasing an additional 181 shares during the period. IFM Investors Pty Ltd raised its stake in shares of Carvana by 0.6% in the 1st quarter. IFM Investors Pty Ltd now owns 21,061 shares of the company’s stock valued at $4,403,000 after purchasing an additional 135 shares during the period. Bayforest Capital Ltd raised its stake in shares of Carvana by 41.5% in the 1st quarter. Bayforest Capital Ltd now owns 1,773 shares of the company’s stock valued at $371,000 after purchasing an additional 520 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Carvana by 27.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 529,596 shares of the company’s stock valued at $110,728,000 after purchasing an additional 114,526 shares during the period. Institutional investors and hedge funds 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.