Carvana (NYSE:CVNA) Shares Gap Up After Better-Than-Expected Earnings

by · The Markets Daily

Carvana Co. (NYSE:CVNA – Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $207.31, but opened at $238.20. Carvana shares last traded at $245.22, with a volume of 2,048,787 shares changing hands.

The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.23 by $0.41. The company had revenue of $3.66 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same quarter in the prior year, the firm earned $0.23 earnings per share. Carvana’s revenue for the quarter was up 31.8% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CVNA. BTIG Research increased their price objective on shares of Carvana from $155.00 to $188.00 and gave the stock a “buy” rating in a research note on Thursday, August 1st. Needham & Company LLC raised their price target on shares of Carvana from $200.00 to $300.00 and gave the stock a “buy” rating in a report on Thursday. Bank of America raised their price target on shares of Carvana from $185.00 to $210.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. Wells Fargo & Company raised their price objective on shares of Carvana from $175.00 to $250.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 23rd. Finally, Robert W. Baird lifted their price target on shares of Carvana from $160.00 to $240.00 and gave the company a “neutral” rating in a research report on Thursday. One research analyst has rated the stock with a sell rating, ten have given a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $193.35.

Read Our Latest Report on CVNA

Insiders Place Their Bets

In related news, major shareholder Ernest C. Garcia II sold 15,814 shares of Carvana stock in a transaction on Friday, October 25th. The stock was sold at an average price of $201.16, for a total value of $3,181,144.24. Following the completion of the sale, the insider now owns 37,442,317 shares of the company’s stock, valued at $7,531,896,487.72. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, major shareholder Ernest C. Garcia II sold 15,814 shares of Carvana stock in a transaction on Friday, October 25th. The stock was sold at an average price of $201.16, for a total transaction of $3,181,144.24. Following the transaction, the insider now directly owns 37,442,317 shares in the company, valued at approximately $7,531,896,487.72. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Daniel J. Gill sold 41,163 shares of the business’s stock in a transaction dated Thursday, October 24th. The shares were sold at an average price of $200.11, for a total value of $8,237,127.93. Following the completion of the transaction, the insider now owns 283,287 shares in the company, valued at $56,688,561.57. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,780,891 shares of company stock valued at $465,902,485. Corporate insiders own 17.12% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in shares of Carvana by 2.7% in the first quarter. Vanguard Group Inc. now owns 10,290,551 shares of the company’s stock valued at $904,642,000 after purchasing an additional 266,972 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of Carvana by 39.5% in the first quarter. Price T Rowe Associates Inc. MD now owns 7,459,065 shares of the company’s stock valued at $655,727,000 after purchasing an additional 2,112,463 shares during the period. Lingotto Investment Management LLP lifted its holdings in Carvana by 1.4% during the second quarter. Lingotto Investment Management LLP now owns 3,776,747 shares of the company’s stock worth $486,143,000 after buying an additional 52,833 shares during the period. Renaissance Technologies LLC lifted its holdings in Carvana by 12.2% during the second quarter. Renaissance Technologies LLC now owns 813,400 shares of the company’s stock worth $104,701,000 after buying an additional 88,500 shares during the period. Finally, Driehaus Capital Management LLC lifted its holdings in Carvana by 124.9% during the second quarter. Driehaus Capital Management LLC now owns 581,787 shares of the company’s stock worth $74,888,000 after buying an additional 323,153 shares during the period. Institutional investors own 56.71% of the company’s stock.

Carvana Stock Performance

The business has a fifty day simple moving average of $171.06 and a two-hundred day simple moving average of $135.88. The company has a debt-to-equity ratio of 47.20, a current ratio of 3.11 and a quick ratio of 2.02. The company has a market cap of $50.21 billion, a PE ratio of 106.56 and a beta of 3.44.

About Carvana

(Get Free Report)

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.

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