Carvana (NYSE:CVNA) Shares Down 10.3% – Here’s Why

Carvana Co. (NYSE:CVNA)’s stock price was down 10.3% during trading on Wednesday . The stock traded as low as $347.00 and last traded at $351.2930. Approximately 2,111,048 shares traded hands during trading, a decline of 43% from the average daily volume of 3,712,986 shares. The stock had previously closed at $391.69.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on CVNA shares. Evercore increased their target price on shares of Carvana from $425.00 to $430.00 in a research report on Tuesday, January 27th. Stephens boosted their price objective on shares of Carvana from $454.00 to $519.00 and gave the stock an “overweight” rating in a research note on Friday, January 9th. Zacks Research lowered shares of Carvana from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 4th. Wells Fargo & Company lifted their target price on shares of Carvana from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Tuesday, January 27th. Finally, Barclays upped their price target on shares of Carvana from $465.00 to $530.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 21st. Nineteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $474.27.

Carvana Stock Performance

The company has a debt-to-equity ratio of 1.63, a current ratio of 4.05 and a quick ratio of 2.55. The stock has a 50-day moving average price of $437.35 and a 200-day moving average price of $382.36. The firm has a market capitalization of $79.36 billion, a PE ratio of 83.29, a price-to-earnings-growth ratio of 1.00 and a beta of 3.57.

Insider Activity

In other news, insider Daniel J. Gill sold 80,000 shares of the business’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $439.50, for a total value of $35,160,000.00. Following the completion of the sale, the insider owned 191,106 shares of the company’s stock, valued at approximately $83,991,087. The trade was a 29.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Michael E. Maroone sold 30,928 shares of Carvana stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $400.34, for a total value of $12,381,715.52. Following the completion of the transaction, the director owned 143,573 shares of the company’s stock, valued at $57,478,014.82. This trade represents a 17.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 419,304 shares of company stock worth $179,171,777 over the last ninety days. Insiders own 16.36% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of hedge funds have recently added to or reduced their stakes in CVNA. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Carvana in the 4th quarter worth about $29,000. Farmers & Merchants Investments Inc. acquired a new stake in Carvana during the fourth quarter worth about $29,000. Salomon & Ludwin LLC lifted its holdings in Carvana by 112.5% in the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock worth $37,000 after acquiring an additional 45 shares during the last quarter. ORG Partners LLC boosted its stake in Carvana by 8,700.0% in the third quarter. ORG Partners LLC now owns 88 shares of the company’s stock valued at $33,000 after acquiring an additional 87 shares during the period. Finally, Washington Trust Advisors Inc. bought a new stake in shares of Carvana in the 3rd quarter worth approximately $38,000. Institutional investors and hedge funds 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.