Carvana (CVNA) Trading Down 6.1% on Insider Selling

Carvana Co (NYSE:CVNA)’s share price was down 6.1% during mid-day trading on Friday following insider selling activity. The company traded as low as $58.52 and last traded at $59.39. Approximately 2,374,526 shares were traded during mid-day trading, an increase of 30% from the average daily volume of 1,832,100 shares. The stock had previously closed at $63.28.

Specifically, major shareholder Ernest C. Garcia II sold 316,678 shares of the stock in a transaction that occurred on Wednesday, March 6th. The stock was sold at an average price of $48.13, for a total transaction of $15,241,712.14. Following the completion of the transaction, the insider now directly owns 52,937,458 shares of the company’s stock, valued at $2,547,879,853.54. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul W. Breaux sold 37,500 shares of the stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $64.82, for a total value of $2,430,750.00. Following the transaction, the insider now directly owns 48,194 shares of the company’s stock, valued at $3,123,935.08. The disclosure for this sale can be found here. Insiders have sold 3,784,951 shares of company stock valued at $221,696,588 over the last ninety days. 13.02% of the stock is owned by insiders.

CVNA has been the subject of several recent research reports. Wells Fargo & Co increased their price target on Carvana from $57.00 to $80.00 and gave the company an “outperform” rating in a research report on Monday, May 6th. Seaport Global Securities initiated coverage on Carvana in a research report on Wednesday, February 13th. They set a “neutral” rating for the company. They noted that the move was a valuation call. Zacks Investment Research cut Carvana from a “hold” rating to a “sell” rating in a research report on Monday, February 4th. Barrington Research cut Carvana from an “outperform” rating to a “market perform” rating in a research report on Wednesday, April 3rd. Finally, BMO Capital Markets increased their price target on Carvana from $35.00 to $40.00 and gave the company a “market perform” rating in a research report on Friday, March 1st. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and nine have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $67.42.

The stock has a market cap of $9.22 billion, a PE ratio of -34.33 and a beta of 2.43. The company has a debt-to-equity ratio of 2.73, a current ratio of 1.39 and a quick ratio of 0.56.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, May 8th. The company reported ($0.53) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.50) by ($0.03). Carvana had a negative return on equity of 30.85% and a negative net margin of 3.54%. The company had revenue of $755.23 million for the quarter, compared to the consensus estimate of $696.61 million. On average, equities research analysts predict that Carvana Co will post -1.78 EPS for the current fiscal year.

Institutional investors have recently bought and sold shares of the business. Spruce House Investment Management LLC boosted its holdings in shares of Carvana by 1.8% in the 1st quarter. Spruce House Investment Management LLC now owns 5,600,000 shares of the company’s stock valued at $325,136,000 after purchasing an additional 100,000 shares in the last quarter. FMR LLC boosted its holdings in shares of Carvana by 749.8% in the 4th quarter. FMR LLC now owns 3,591,784 shares of the company’s stock valued at $117,487,000 after purchasing an additional 3,169,132 shares in the last quarter. Vanguard Group Inc. boosted its holdings in shares of Carvana by 41.5% in the 3rd quarter. Vanguard Group Inc. now owns 2,621,582 shares of the company’s stock valued at $154,909,000 after purchasing an additional 768,256 shares in the last quarter. Whale Rock Capital Management LLC boosted its holdings in shares of Carvana by 106.7% in the 1st quarter. Whale Rock Capital Management LLC now owns 2,028,224 shares of the company’s stock valued at $117,759,000 after purchasing an additional 1,046,806 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in shares of Carvana by 87.5% in the 1st quarter. Morgan Stanley now owns 2,017,113 shares of the company’s stock valued at $117,113,000 after purchasing an additional 941,428 shares in the last quarter. Hedge funds and other institutional investors own 34.92% of the company’s stock.

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About Carvana (NYSE:CVNA)

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 proprietary 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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