Carvana (NYSE:CVNA) Sets New 12-Month High After Earnings Beat

Carvana Co. (NYSE:CVNA)’s share price reached a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $293.62 and last traded at $288.50, with a volume of 6188955 shares traded. The stock had previously closed at $259.17.

The company reported $1.51 EPS for the quarter, topping the consensus estimate of $0.75 by $0.76. The company had revenue of $4.23 billion for the quarter, compared to analysts’ expectations of $3.94 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The business’s revenue for the quarter was up 38.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.23 earnings per share.

Analysts Set New Price Targets

A number of brokerages recently weighed in on CVNA. Wells Fargo & Company raised their price target on shares of Carvana from $290.00 to $310.00 and gave the company an “overweight” rating in a report on Thursday. JMP Securities dropped their target price on Carvana from $340.00 to $275.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 9th. William Blair reiterated an “outperform” rating on shares of Carvana in a report on Thursday, February 20th. Wedbush set a $250.00 price objective on Carvana and gave the stock a “neutral” rating in a report on Wednesday, February 19th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $340.00 target price on shares of Carvana in a research note on Thursday. Six research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat, Carvana presently has an average rating of “Moderate Buy” and an average price target of $268.59.

Insider Buying and Selling

In other news, insider Paul W. Breaux sold 1,362 shares of the firm’s stock in a transaction dated Monday, February 10th. The stock was sold at an average price of $270.08, for a total transaction of $367,848.96. Following the sale, the insider now owns 153,240 shares of the company’s stock, valued at $41,387,059.20. This trade represents a 0.88 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, April 7th. The shares were sold at an average price of $150.90, for a total value of $7,545,000.00. Following the completion of the transaction, the chief operating officer now owns 123,803 shares of the company’s stock, valued at $18,681,872.70. This represents a 28.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 348,560 shares of company stock valued at $73,806,520. 17.12% of the stock is owned by company insiders.

Hedge Funds Weigh In On Carvana

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CVNA. Charles Schwab Investment Management Inc. lifted its holdings in shares of Carvana by 6.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 490,874 shares of the company’s stock valued at $102,632,000 after purchasing an additional 27,912 shares in the last quarter. ASR Vermogensbeheer N.V. acquired a new stake in Carvana in the 1st quarter valued at approximately $1,609,000. Primecap Management Co. CA lifted its stake in Carvana by 13.8% in the 1st quarter. Primecap Management Co. CA now owns 199,100 shares of the company’s stock valued at $41,628,000 after acquiring an additional 24,200 shares in the last quarter. Vanguard Group Inc. lifted its stake in Carvana by 9.7% in the 1st quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company’s stock valued at $2,620,785,000 after acquiring an additional 1,109,476 shares in the last quarter. Finally, Strategic Investment Solutions Inc. IL bought a new position in shares of Carvana during the 1st quarter worth approximately $90,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Down 6.0 %

The stock’s fifty day moving average price is $209.94 and its 200-day moving average price is $227.00. The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82. The company has a market capitalization of $57.19 billion, a price-to-earnings ratio of 170.87 and a beta of 3.61.

Carvana Company Profile

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.