Carvana (NYSE:CVNA) Shares Gap Down After Analyst Downgrade

Carvana Co. (NYSE:CVNA)’s stock price gapped down before the market opened on Thursday after DA Davidson lowered their price target on the stock from $470.00 to $320.00. The stock had previously closed at $361.53, but opened at $341.90. DA Davidson currently has a neutral rating on the stock. Carvana shares last traded at $336.3730, with a volume of 6,173,251 shares trading hands.

A number of other research firms have also recently issued reports on CVNA. Gordon Haskett dropped their price objective on Carvana from $445.00 to $435.00 and set a “hold” rating for the company in a report on Monday, January 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Carvana in a research note on Monday, December 29th. BTIG Research cut their price target on shares of Carvana from $535.00 to $455.00 and set a “buy” rating on the stock in a report on Thursday. Wells Fargo & Company decreased their price objective on shares of Carvana from $525.00 to $425.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Jefferies Financial Group boosted their price objective on shares of Carvana from $475.00 to $550.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. Nineteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $457.18.

Insider Buying and Selling at Carvana

In other news, COO Benjamin E. Huston sold 10,000 shares of Carvana stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $411.27, for a total value of $4,112,700.00. Following the transaction, the chief operating officer owned 98,652 shares of the company’s stock, valued at $40,572,608.04. The trade was a 9.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul W. Breaux sold 1,527 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $475.00, for a total transaction of $725,325.00. Following the transaction, the insider owned 69,289 shares of the company’s stock, valued at approximately $32,912,275. This trade represents a 2.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 420,351 shares of company stock valued at $179,589,049. 17.12% of the stock is currently owned by corporate insiders.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q4 results materially beat expectations: Carvana reported $4.22 EPS and $5.6B revenue (up ~58% YoY), with record unit economics and management projecting stronger EBITDA in 2026 — a clear fundamental upside driver. Carvana Q4 Earnings Beat on Higher-Than-Expected Vehicle Sales
• Neutral Sentiment: Many sell‑side firms still rate CVNA as Buy/Overweight even after trimming targets — that keeps upside narratives alive, but trimmed targets reduce near‑term sentiment. Examples of target adjustments were posted this morning. JPMorgan adjusts price target on Carvana
• Negative Sentiment: Post‑earnings investor concern about profitability metrics, accounting clarity and forward visibility — analysts and traders flagged weaker margin signals and a vague 2026 outlook, which knocked sentiment despite the beat. Carvana’s Comeback Narrative Tested by Accounting Scrutiny, Profitability Metrics
• Negative Sentiment: Regulatory / legal pressure: a law firm investigation into potential securities claims was announced, adding litigation risk and near‑term uncertainty for the stock. Carvana Investors Should Contact Block & Leviton
• Negative Sentiment: Market reaction: headlines and commentary pushed CVNA sharply lower (pre‑market and after-hours weakness) as traders focused on margin/guidance ambiguity — driving very high intraday volume and volatility. Carvana Stock Drops Thursday, Deepening Its Recent Rout
• Negative Sentiment: Insider selling is extensive per filings/summaries cited by data providers — a potential signaling factor for some investors worried about management stock disposals. Carvana Co. (CVNA) Stock Falls on Q4 2025 Earnings (QuiverQuant)

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Carvana in the fourth quarter worth about $29,000. Farmers & Merchants Investments Inc. acquired a new stake in Carvana in the 4th quarter worth approximately $29,000. ORG Partners LLC boosted its stake in Carvana by 8,700.0% in the 3rd quarter. ORG Partners LLC now owns 88 shares of the company’s stock worth $33,000 after purchasing an additional 87 shares in the last quarter. Motiv8 Investments LLC purchased a new stake in Carvana during the 4th quarter worth approximately $33,000. Finally, Salomon & Ludwin LLC increased its stake in Carvana by 112.5% during the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after purchasing an additional 45 shares in the last quarter. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Price Performance

The stock’s 50 day simple moving average is $425.42 and its 200-day simple moving average is $381.76. The firm has a market cap of $72.37 billion, a price-to-earnings ratio of 41.38 and a beta of 3.57. The company has a debt-to-equity ratio of 1.63, a quick ratio of 2.55 and a current ratio of 4.05.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 61.70%. The firm had revenue of $5.60 billion for the quarter, compared to analyst estimates of $5.24 billion. During the same period in the previous year, the company earned $0.56 earnings per share. The business’s quarterly revenue was up 58.0% compared to the same quarter last year. Equities research analysts anticipate that Carvana Co. will post 2.85 EPS for the current fiscal year.

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.