Carvana (NYSE:CVNA) Stock Price Down 5.2% After Insider Selling

Carvana Co. (NYSE:CVNA) traded down 5.2% during mid-day trading on Thursday following insider selling activity. The company traded as low as $322.62 and last traded at $322.73. 2,663,688 shares were traded during mid-day trading, a decline of 32% from the average session volume of 3,930,733 shares. The stock had previously closed at $340.32.

Specifically, major shareholder Ernest C. Garcia II sold 50,000 shares of Carvana stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $330.27, for a total transaction of $16,513,500.00. Following the completion of the transaction, the insider now owns 36,992,317 shares in the company, valued at approximately $12,217,452,535.59. This trade represents a 0.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Ryan S. Keeton sold 11,276 shares of the business’s stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $340.68, for a total value of $3,841,507.68. Following the sale, the insider now owns 136,628 shares of the company’s stock, valued at approximately $46,546,427.04. This represents a 7.62% decrease in their position. The disclosure for this sale can be found here. In other news, CEO Ernest C. Garcia III sold 4,552 shares of Carvana stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $333.23, for a total value of $1,516,862.96. Following the completion of the sale, the chief executive officer now directly owns 762,724 shares in the company, valued at approximately $254,162,518.52. The trade was a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Analyst Ratings Changes

CVNA has been the subject of a number of analyst reports. Needham & Company LLC reiterated a “buy” rating and issued a $340.00 price target on shares of Carvana in a research report on Thursday, May 8th. Evercore ISI lowered their price objective on shares of Carvana from $250.00 to $240.00 and set an “in-line” rating for the company in a research report on Tuesday, March 11th. Citigroup boosted their price objective on shares of Carvana from $280.00 to $325.00 and gave the company a “buy” rating in a research report on Thursday, May 8th. Royal Bank of Canada boosted their price objective on shares of Carvana from $320.00 to $340.00 and gave the company an “outperform” rating in a research report on Thursday, May 8th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Carvana from $365.00 to $325.00 and set an “overweight” rating for the company in a report on Thursday, March 27th. Six research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and a consensus price target of $280.35.

Carvana Stock Down 6.3%

The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The company has a market cap of $68.29 billion, a price-to-earnings ratio of 203.11 and a beta of 3.65. The stock’s fifty day moving average is $270.50 and its two-hundred day moving average is $240.77.

Carvana (NYSE:CVNA) last posted its earnings results on Wednesday, May 7th. The company reported $1.51 earnings per share for the quarter, topping analysts’ consensus estimates of $0.75 by $0.76. The company had revenue of $4.23 billion for the quarter, compared to analyst estimates of $3.94 billion. Carvana had a net margin of 1.54% and a return on equity of 36.59%. The firm’s revenue was up 38.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.23 EPS. Sell-side analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Carvana

Several institutional investors and hedge funds have recently added to or reduced their stakes in CVNA. Quent Capital LLC bought a new position in shares of Carvana during the 4th quarter valued at approximately $28,000. Brooklyn Investment Group grew its position in shares of Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company’s stock valued at $29,000 after acquiring an additional 125 shares during the period. Global Retirement Partners LLC grew its position in shares of Carvana by 109.9% during the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after acquiring an additional 78 shares during the period. Rialto Wealth Management LLC bought a new position in shares of Carvana during the 4th quarter valued at approximately $31,000. Finally, N.E.W. Advisory Services LLC bought a new position in Carvana in the 1st quarter worth approximately $33,000. Hedge funds and other institutional investors own 56.71% of the company’s stock.

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.