Carvana (NYSE:CVNA) Trading Down 3.6% on Insider Selling

Carvana Co. (NYSE:CVNA) was down 3.6% on Monday following insider selling activity. The stock traded as low as $359.85 and last traded at $354.39. Approximately 550,215 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 4,247,689 shares. The stock had previously closed at $367.78.

Specifically, major shareholder Ernest C. Garcia II sold 93,376 shares of Carvana stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the transaction, the insider owned 6,624 shares in the company, valued at approximately $2,610,915.84. This trade represents a 93.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of Carvana stock in a transaction on Friday, August 1st. The shares were sold at an average price of $371.30, for a total value of $37,130,000.00. Following the completion of the transaction, the insider owned 35,142,792 shares in the company, valued at approximately $13,048,518,669.60. The trade was a 0.28% decrease in their position. The disclosure for this sale can be found here. In other news, major shareholder Ernest C. Garcia II sold 6,624 shares of Carvana stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $409.89, for a total value of $2,715,111.36. Following the transaction, the insider owned 35,142,792 shares in the company, valued at approximately $14,404,679,012.88. This trade represents a 0.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CVNA shares. Needham & Company LLC set a $500.00 price target on Carvana and gave the company a “buy” rating in a research note on Thursday, July 31st. JMP Securities set a $460.00 price objective on Carvana and gave the stock a “market outperform” rating in a research report on Thursday. Robert W. Baird boosted their price objective on Carvana from $200.00 to $275.00 and gave the stock a “neutral” rating in a research report on Thursday, May 8th. Morgan Stanley boosted their price objective on Carvana from $280.00 to $290.00 and gave the stock an “overweight” rating in a research report on Thursday, May 15th. Finally, Evercore ISI boosted their price objective on Carvana from $295.00 to $305.00 and gave the stock an “in-line” rating in a research report on Tuesday, June 24th. Six research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $379.65.

Carvana Price Performance

The company has a market capitalization of $77.26 billion, a price-to-earnings ratio of 90.42, a P/E/G ratio of 1.25 and a beta of 3.57. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. The business has a 50 day moving average price of $334.70 and a 200-day moving average price of $268.97.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.19. Carvana had a return on equity of 40.57% and a net margin of 3.46%. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same period in the previous year, the business earned ($0.05) EPS. The firm’s revenue was up 41.9% compared to the same quarter last year. Research analysts predict that Carvana Co. will post 2.85 EPS for the current fiscal year.

Institutional Investors Weigh In On Carvana

Several hedge funds and other institutional investors have recently modified their holdings of CVNA. Price T Rowe Associates Inc. MD raised its position in shares of Carvana by 13.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company’s stock worth $3,125,749,000 after purchasing an additional 1,823,218 shares during the period. Vanguard Group Inc. raised its position in shares of Carvana by 9.7% during the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company’s stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares during the period. Durable Capital Partners LP raised its position in shares of Carvana by 6.3% during the fourth quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company’s stock worth $440,932,000 after purchasing an additional 129,246 shares during the period. Whale Rock Capital Management LLC raised its position in shares of Carvana by 29.8% during the fourth quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company’s stock worth $247,017,000 after purchasing an additional 278,760 shares during the period. Finally, BNP Paribas Financial Markets raised its position in shares of Carvana by 89.8% during the fourth quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company’s stock worth $207,086,000 after purchasing an additional 481,912 shares during the period. 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.