Carvana (NYSE:CVNA) Cut to “Hold” at Zacks Research

Zacks Research cut shares of Carvana (NYSE:CVNA) from a strong-buy rating to a hold rating in a report issued on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Carvana’s Q2 2027 earnings at $0.54 EPS and Q3 2027 earnings at $0.61 EPS.

A number of other research firms also recently commented on CVNA. Argus dropped their price target on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. DA Davidson increased their price objective on shares of Carvana from $64.00 to $67.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. UBS Group reissued a “buy” rating and issued a $104.00 target price (up from $97.00) on shares of Carvana in a report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $107.40 target price on shares of Carvana in a research report on Thursday, April 30th. Finally, Wells Fargo & Company upped their price target on shares of Carvana from $85.00 to $95.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, Carvana currently has an average rating of “Moderate Buy” and an average price target of $92.92.

Carvana Trading Down 4.5%

Shares of NYSE:CVNA opened at $67.50 on Wednesday. The company has a market capitalization of $74.04 billion, a P/E ratio of 41.06, a P/E/G ratio of 11.90 and a beta of 3.46. Carvana has a 1 year low of $54.46 and a 1 year high of $97.38. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The business’s 50 day simple moving average is $67.86 and its 200 day simple moving average is $72.29.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $1.37. The firm had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. On average, research analysts anticipate that Carvana will post 1.58 EPS for the current fiscal year.

Insider Activity at Carvana

In related news, COO Benjamin E. Huston sold 50,000 shares of the company’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $76.99, for a total transaction of $3,849,600.00. Following the completion of the sale, the chief operating officer directly owned 529,810 shares in the company, valued at $40,791,131.52. This represents a 8.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the firm’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $77.44, for a total value of $4,936,672.50. Following the completion of the sale, the chief financial officer directly owned 1,050,635 shares in the company, valued at $81,359,073.13. This trade represents a 5.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,962 shares of company stock worth $28,525,088 in the last three months. Insiders own 15.19% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Sands Capital Management LLC grew its position in Carvana by 44.4% in the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock worth $1,030,798,000 after purchasing an additional 751,019 shares in the last quarter. Capricorn Fund Managers Ltd purchased a new stake in Carvana in the 1st quarter valued at about $29,866,000. Gavilan Investment Partners LLC lifted its position in shares of Carvana by 24.6% during the 4th quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company’s stock worth $36,294,000 after buying an additional 17,000 shares in the last quarter. Goodnow Investment Group LLC lifted its position in shares of Carvana by 9.0% during the 4th quarter. Goodnow Investment Group LLC now owns 710,091 shares of the company’s stock worth $299,673,000 after buying an additional 58,828 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its position in shares of Carvana by 239.6% during the 4th quarter. Hsbc Holdings PLC now owns 221,727 shares of the company’s stock worth $93,748,000 after buying an additional 156,430 shares in the last quarter. Institutional investors own 56.71% of the company’s stock.

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.