Carvana (NYSE:CVNA) Rating Lowered to “Hold” at Wall Street Zen

Carvana (NYSE:CVNA) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other brokerages have also weighed in on CVNA. Wedbush raised Carvana to a “hold” rating in a report on Thursday, May 8th. Morgan Stanley increased their price objective on Carvana from $280.00 to $290.00 and gave the company an “overweight” rating in a report on Thursday, May 15th. Wells Fargo & Company increased their price objective on Carvana from $290.00 to $310.00 and gave the company an “overweight” rating in a report on Thursday, May 8th. Bank of America increased their price objective on Carvana from $325.00 to $375.00 and gave the company a “buy” rating in a report on Tuesday, June 10th. Finally, Robert W. Baird increased their price objective on Carvana from $200.00 to $275.00 and gave the company a “neutral” rating in a report on Thursday, May 8th. Seven equities research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $283.59.

Carvana Trading Up 4.3%

Shares of NYSE:CVNA opened at $321.06 on Friday. The business’s 50-day moving average is $282.80 and its 200 day moving average is $242.49. Carvana has a 1 year low of $111.55 and a 1 year high of $351.43. The firm has a market capitalization of $68.75 billion, a P/E ratio of 112.65, a P/E/G ratio of 1.25 and a beta of 3.65. The company has a debt-to-equity ratio of 2.97, a current ratio of 3.81 and a quick ratio of 2.70.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, May 7th. The company reported $1.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.75 by $0.76. Carvana had a return on equity of 44.86% and a net margin of 2.68%. The company had revenue of $4.23 billion for the quarter, compared to analyst estimates of $3.94 billion. During the same period in the prior year, the company posted $0.23 EPS. The firm’s quarterly revenue was up 38.3% compared to the same quarter last year. On average, research analysts predict that Carvana will post 2.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Carvana

In other Carvana news, CEO Ernest C. Garcia III sold 1,862 shares of the firm’s stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $347.97, for a total value of $647,920.14. Following the sale, the chief executive officer now directly owns 770,000 shares of the company’s stock, valued at approximately $267,936,900. This trade represents a 0.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the firm’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 sale, the chief operating officer now directly owns 123,803 shares in the company, valued at approximately $18,681,872.70. The trade was a 28.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,293,166 shares of company stock valued at $393,426,581. Company insiders own 16.36% of the company’s stock.

Hedge Funds Weigh In On Carvana

Several hedge funds and other institutional investors have recently made changes to their positions in CVNA. Brooklyn Investment Group lifted its position in shares of Carvana by 961.5% in the first quarter. Brooklyn Investment Group now owns 138 shares of the company’s stock valued at $29,000 after acquiring an additional 125 shares in the last quarter. Global Retirement Partners LLC lifted its position in shares of Carvana by 109.9% in the fourth quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after acquiring an additional 78 shares in the last quarter. Rialto Wealth Management LLC purchased a new position in shares of Carvana in the fourth quarter valued at approximately $31,000. N.E.W. Advisory Services LLC purchased a new position in shares of Carvana in the first quarter valued at approximately $33,000. Finally, Venturi Wealth Management LLC lifted its position in shares of Carvana by 79.2% in the fourth quarter. Venturi Wealth Management LLC now owns 224 shares of the company’s stock valued at $46,000 after acquiring an additional 99 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

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 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.