Zacks Investment Research Downgrades Carvana (NYSE:CVNA) to Sell

Carvana (NYSE:CVNA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Carvana Co. provide eCommerce platform for buying used cars. Carvana Co. is headquartered in Phoenix, Arizona. “

Other analysts have also issued reports about the stock. Citigroup upgraded shares of Copa from a “neutral” rating to a “buy” rating in a research note on Thursday, May 9th. Robert W. Baird upped their target price on shares of Carvana from $65.00 to $85.00 and gave the stock an “outperform” rating in a research note on Thursday, May 9th. Barrington Research lowered shares of Carvana from an “outperform” rating to a “market perform” rating in a research note on Wednesday, April 3rd. BMO Capital Markets upped their target price on shares of Air Products & Chemicals to $235.00 and gave the stock an “outperform” rating in a research note on Monday, May 13th. Finally, Morgan Stanley cut their target price on shares of Virtus Investment Partners from $121.00 to $118.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Two analysts have rated the stock with a sell rating, six have given a hold rating and nine have assigned a buy rating to the stock. Carvana has a consensus rating of “Hold” and an average price target of $67.92.

NYSE:CVNA traded down $3.31 on Tuesday, reaching $64.34. 40,998 shares of the company’s stock were exchanged, compared to its average volume of 1,716,720. The company has a quick ratio of 0.56, a current ratio of 1.39 and a debt-to-equity ratio of 2.73. The stock has a market cap of $9.94 billion, a price-to-earnings ratio of -37.23 and a beta of 2.41. The business has a fifty day simple moving average of $62.45. Carvana has a 52-week low of $28.44 and a 52-week high of $76.85.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, May 8th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($0.50) by ($0.03). The business had revenue of $755.23 million for the quarter, compared to analysts’ expectations of $696.61 million. Carvana had a negative return on equity of 30.85% and a negative net margin of 3.54%. As a group, research analysts anticipate that Carvana will post -1.82 EPS for the current year.

In related news, major shareholder Ernest C. Garcia II sold 394,663 shares of the company’s stock in a transaction that occurred on Wednesday, May 22nd. The stock was sold at an average price of $66.24, for a total value of $26,142,477.12. Following the completion of the transaction, the insider now directly owns 52,937,458 shares of the company’s stock, valued at $3,506,577,217.92. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul W. Breaux sold 10,000 shares of the company’s stock in a transaction that occurred on Friday, June 28th. The shares were sold at an average price of $62.72, for a total value of $627,200.00. Following the completion of the transaction, the insider now directly owns 10,628 shares of the company’s stock, valued at $666,588.16. The disclosure for this sale can be found here. Insiders have sold 2,114,002 shares of company stock worth $136,910,749 over the last 90 days. Insiders own 13.02% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp boosted its position in shares of Carvana by 59.1% during the 4th quarter. Bank of New York Mellon Corp now owns 1,090,063 shares of the company’s stock worth $35,656,000 after purchasing an additional 404,714 shares in the last quarter. Raymond James & Associates boosted its position in shares of Carvana by 61.3% during the 4th quarter. Raymond James & Associates now owns 18,410 shares of the company’s stock worth $602,000 after purchasing an additional 7,000 shares in the last quarter. Royce & Associates LP bought a new position in shares of Carvana during the 4th quarter worth about $621,000. Dimensional Fund Advisors LP boosted its position in shares of Carvana by 14.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 59,299 shares of the company’s stock worth $1,939,000 after purchasing an additional 7,348 shares in the last quarter. Finally, Natixis Advisors L.P. bought a new position in shares of Carvana during the 4th quarter worth about $356,000. 35.90% of the stock is owned by hedge funds and other institutional investors.

About Carvana

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.

Further Reading: Sell-Side Analysts

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