DA Davidson Forecasts Strong Price Appreciation for Carvana (NYSE:CVNA) Stock

Carvana (NYSE:CVNA) had its price objective increased by analysts at DA Davidson from $260.00 to $380.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a “neutral” rating on the stock. DA Davidson’s price target points to a potential upside of 3.15% from the company’s previous close.

Other equities research analysts also recently issued reports about the stock. Needham & Company LLC boosted their price objective on shares of Carvana from $340.00 to $500.00 and gave the stock a “buy” rating in a research note on Thursday. Robert W. Baird upped their target price on shares of Carvana from $200.00 to $275.00 and gave the company a “neutral” rating in a research note on Thursday, May 8th. JPMorgan Chase & Co. upped their target price on shares of Carvana from $325.00 to $350.00 and gave the company an “overweight” rating in a research note on Monday, July 21st. Piper Sandler upped their target price on shares of Carvana from $340.00 to $440.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Wall Street Zen upgraded shares of Carvana from a “hold” rating to a “buy” rating in a research note on Saturday, July 5th. Six analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $379.65.

Carvana Stock Performance

Shares of CVNA stock opened at $368.39 on Thursday. Carvana has a one year low of $118.50 and a one year high of $413.33. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.70 and a current ratio of 4.00. The company has a 50 day moving average price of $333.58 and a 200 day moving average price of $267.43. The firm has a market capitalization of $78.89 billion, a price-to-earnings ratio of 92.33, a price-to-earnings-growth ratio of 1.47 and a beta of 3.57.

Carvana (NYSE:CVNA) last released its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.19. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.54 billion. During the same period in the previous year, the firm earned ($0.05) earnings per share. Carvana’s revenue for the quarter was up 41.9% on a year-over-year basis. Sell-side analysts anticipate that Carvana will post 2.85 EPS for the current year.

Insiders Place Their Bets

In other Carvana news, CEO Ernest C. Garcia III sold 2,700 shares of the stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $403.83, for a total transaction of $1,090,341.00. Following the sale, the chief executive officer directly owned 591,440 shares of the company’s stock, valued at approximately $238,841,215.20. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Ernest C. Garcia II sold 50,000 shares of the stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $332.21, for a total transaction of $16,610,500.00. Following the sale, the insider directly owned 35,342,792 shares in the company, valued at $11,741,228,930.32. This trade represents a 0.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 2,343,765 shares of company stock worth $780,120,744 over the last three months. 17.12% of the stock is owned by corporate insiders.

Institutional Trading of Carvana

A number of institutional investors and hedge funds have recently modified their holdings of CVNA. Price T Rowe Associates Inc. MD raised its holdings in shares of Carvana by 13.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company’s stock worth $3,125,749,000 after purchasing an additional 1,823,218 shares during the period. Vanguard Group Inc. raised its holdings in shares of Carvana by 9.7% during the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company’s stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares during the period. Castle Hook Partners LP acquired a new stake in shares of Carvana during the fourth quarter worth $116,020,000. BNP Paribas Financial Markets increased its holdings in shares of Carvana by 89.8% in the 4th quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company’s stock worth $207,086,000 after acquiring an additional 481,912 shares during the period. Finally, Alyeska Investment Group L.P. bought a new stake in Carvana in the 1st quarter valued at about $71,856,000. 56.71% of the stock is owned by institutional investors and hedge funds.

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.