Citigroup Issues Pessimistic Forecast for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its price objective cut by stock analysts at Citigroup from $550.00 to $465.00 in a research note issued to investors on Thursday, MarketBeat.com reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price target points to a potential upside of 38.25% from the stock’s current price.

Several other analysts also recently commented on CVNA. Stephens reaffirmed an “overweight” rating and set a $519.00 price objective on shares of Carvana in a research note on Thursday. BTIG Research dropped their price target on Carvana from $535.00 to $455.00 and set a “buy” rating on the stock in a research report on Thursday. Deutsche Bank Aktiengesellschaft decreased their price objective on Carvana from $600.00 to $519.00 and set a “buy” rating for the company in a research report on Thursday. Needham & Company LLC reissued a “buy” rating and set a $500.00 target price on shares of Carvana in a research note on Thursday. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Carvana in a research note on Monday, December 29th. Twenty analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $443.55.

Carvana Price Performance

Carvana stock opened at $336.34 on Thursday. The company has a current ratio of 4.31, a quick ratio of 2.55 and a debt-to-equity ratio of 1.15. The firm has a market capitalization of $73.17 billion, a P/E ratio of 41.83 and a beta of 3.57. The business has a 50-day moving average of $423.03 and a 200-day moving average of $381.59. Carvana has a 1 year low of $148.25 and a 1 year high of $486.89.

Carvana (NYSE:CVNA) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $3.12. The firm had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.24 billion. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business’s revenue for the quarter was up 58.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.56 earnings per share. On average, equities analysts anticipate that Carvana will post 2.85 EPS for the current year.

Insider Activity at Carvana

In related news, VP Stephen R. Palmer sold 1,000 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $393.04, for a total transaction of $393,040.00. Following the transaction, the vice president directly owned 37,192 shares in the company, valued at approximately $14,617,943.68. The trade was a 2.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Daniel J. Gill sold 40,000 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $475.24, for a total transaction of $19,009,600.00. Following the sale, the insider directly owned 191,106 shares in the company, valued at $90,821,215.44. This trade represents a 17.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 420,351 shares of company stock worth $179,589,049. Insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its stake in Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after purchasing an additional 1,407,762 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Carvana by 24.7% in the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock valued at $7,082,804,000 after buying an additional 3,328,115 shares during the last quarter. State Street Corp increased its holdings in shares of Carvana by 93.7% during the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock worth $2,411,751,000 after acquiring an additional 2,764,759 shares during the last quarter. Capital Research Global Investors raised its stake in Carvana by 42.9% in the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after acquiring an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Carvana by 55.4% during the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after purchasing an additional 1,382,852 shares during the last quarter. 56.71% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q4 results were materially stronger than feared — revenue rose ~58% YoY and EPS crushed estimates, and management highlighted record retail/wholesale volume and a path to EBITDA growth. This beat is the main bullish driver behind buying interest today. Carvana Q4 2025 Earnings Call Highlights
• Positive Sentiment: Wedbush and several other firms continue to rate CVNA favorably (Wedbush kept an outperform/buy stance even after trimming its target), supporting conviction among growth‑oriented analysts despite lower targets. Wedbush Remains a Buy on Carvana Co (CVNA)
• Neutral Sentiment: Analysts and models point to restored profitability but warn earnings are sensitive to gross profit per unit (GPU) swings — that caps upside until margin durability is proven. Carvana: Profitability Restored, But GPU Sensitivity Caps The Upside
• Negative Sentiment: Multiple firms trimmed price targets and one major shop (DA Davidson) cut to $320 and flagged a neutral view, which triggered early‑session selling and widened intraday swings. Analyst downgrades/target cuts are pressuring sentiment. Carvana Shares Gap Down After Analyst Downgrade
• Negative Sentiment: Investors pressed management on accounting and disclosure during the call; the CFO’s defense and subsequent media scrutiny (and reports of an investigator outreach) have raised governance concerns that could weigh on the stock until clarity is provided. Carvana fails to impress investors; CFO defends accounting practices

Carvana Company Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.