Carvana (NYSE:CVNA) Sets New 1-Year High on Better-Than-Expected Earnings

Carvana Co. (NYSE:CVNA) reached a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $392.70 and last traded at $402.82, with a volume of 186103 shares traded. The stock had previously closed at $333.59.

The company reported $1.28 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.19. The company had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.54 billion. Carvana had a return on equity of 49.19% and a net margin of 3.46%. The firm’s revenue for the quarter was up 41.9% on a year-over-year basis. During the same quarter last year, the firm posted ($0.05) EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Wall Street Zen upgraded Carvana from a “hold” rating to a “buy” rating in a report on Saturday, July 5th. Needham & Company LLC lifted their price target on Carvana from $340.00 to $500.00 and gave the stock a “buy” rating in a report on Thursday. JMP Securities lifted their price target on Carvana from $440.00 to $460.00 and gave the stock a “market outperform” rating in a report on Thursday. Oppenheimer upgraded Carvana from a “market perform” rating to an “outperform” rating and set a $450.00 price target on the stock in a report on Friday, July 25th. Finally, Royal Bank Of Canada lifted their price target on Carvana from $400.00 to $460.00 and gave the stock an “outperform” rating in a report on Thursday. Seven analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $357.37.

Insider Buying and Selling at Carvana

In other Carvana news, insider Daniel J. Gill sold 70,166 shares of Carvana stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $281.43, for a total value of $19,746,817.38. Following the completion of the transaction, the insider directly owned 201,087 shares of the company’s stock, valued at $56,591,914.41. The trade was a 25.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Mark W. Jenkins sold 51,380 shares of Carvana stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $326.03, for a total value of $16,751,421.40. Following the completion of the transaction, the chief financial officer directly owned 162,079 shares of the company’s stock, valued at approximately $52,842,616.37. This represents a 24.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,323,765 shares of company stock valued at $772,833,404 in the last three months. 17.12% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Carvana

Large investors have recently added to or reduced their stakes in the business. Hilltop National Bank purchased a new stake in Carvana during the 2nd quarter worth approximately $25,000. Brooklyn Investment Group increased its stake in Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company’s stock worth $29,000 after buying an additional 125 shares during the period. N.E.W. Advisory Services LLC purchased a new stake in Carvana during the 1st quarter worth approximately $33,000. SJS Investment Consulting Inc. increased its stake in Carvana by 960.0% during the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company’s stock worth $36,000 after buying an additional 96 shares during the period. Finally, LRI Investments LLC purchased a new stake in Carvana during the 2nd quarter worth approximately $42,000. 56.71% of the stock is owned by hedge funds and other institutional investors.

Carvana Price Performance

The stock’s 50 day moving average is $332.32 and its two-hundred day moving average is $266.23. The company has a debt-to-equity ratio of 2.97, a current ratio of 3.81 and a quick ratio of 2.70. The stock has a market capitalization of $83.59 billion, a PE ratio of 97.83, a price-to-earnings-growth ratio of 1.26 and a beta of 3.59.

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.