BNP Paribas Exane Issues Pessimistic Forecast for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its price target reduced by research analysts at BNP Paribas Exane from $86.00 to $69.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the stock. BNP Paribas Exane’s price objective would suggest a potential upside of 14.96% from the company’s previous close.

Several other research analysts also recently commented on CVNA. Weiss Ratings restated a “hold (c+)” rating on shares of Carvana in a research report on Thursday, June 18th. Argus decreased their price target on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. JPMorgan Chase & Co. boosted their price target on Carvana from $91.00 to $93.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. DA Davidson set a $67.00 price objective on Carvana in a research report on Thursday. Finally, Royal Bank Of Canada set a $82.00 price objective on Carvana and gave the company an “outperform” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Carvana has an average rating of “Moderate Buy” and a consensus price target of $88.34.

Carvana Price Performance

Shares of NYSE:CVNA traded down $6.30 during midday trading on Thursday, hitting $60.02. The stock had a trading volume of 25,604,586 shares, compared to its average volume of 15,009,983. The company’s 50-day moving average price is $67.03 and its 200-day moving average price is $71.05. The company has a market capitalization of $65.83 billion, a P/E ratio of 36.48, a price-to-earnings-growth ratio of 14.83 and a beta of 3.46. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. The company had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The firm’s quarterly revenue was up 52.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.51 EPS. As a group, equities research analysts predict that Carvana will post 1.63 EPS for the current fiscal year.

Insiders Place Their Bets

In other Carvana news, insider Thomas Taira sold 5,597 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $67.15, for a total value of $375,838.55. Following the sale, the insider owned 315,075 shares in the company, valued at $21,157,286.25. This trade represents a 1.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $76.99, for a total transaction of $3,849,600.00. Following the sale, the chief operating officer directly owned 529,810 shares in the company, valued at approximately $40,791,131.52. The trade was a 8.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,962 shares of company stock worth $28,525,088 over the last 90 days. Insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. bought a new position in Carvana in the fourth quarter valued at about $29,000. Farmers & Merchants Investments Inc. bought a new stake in shares of Carvana during the fourth quarter worth about $29,000. Motiv8 Investments LLC acquired a new position in shares of Carvana in the fourth quarter valued at approximately $33,000. Ascentis Independent Advisors acquired a new position in shares of Carvana in the first quarter valued at approximately $26,000. Finally, Salomon & Ludwin LLC raised its holdings in Carvana by 112.5% in the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after buying an additional 45 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record Q2 revenue of approximately $7.38 billion, up 52.4% year over year, while net income reached $513 million and adjusted EBITDA rose to a record $769 million. Retail units sold increased 38%, marking another quarter of substantial operating growth. Carvana shares slide despite record quarterly profit
• Positive Sentiment: Management highlighted continued investment in inventory expansion, software platforms and automation, including an AI customer-service agent intended to reduce costs and improve scalability. The company characterized Q2 as its 10th consecutive quarter of growth and profitability. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Needham reaffirmed its buy rating and maintained a $120 price target, arguing that the recent weakness may create an attractive entry point and that the stock could potentially double over the next year. Needham says Carvana stock could double
• Neutral Sentiment: Citizens JMP and BTIG lowered their price targets to $83 and $87, respectively, but retained market outperform or buy ratings. The revisions indicate reduced near-term expectations while analysts remain constructive on Carvana’s longer-term prospects. Carvana reports record Q2 beat
• Negative Sentiment: Carvana forecast full-year adjusted EBITDA of $2.7 billion to $3.0 billion, with the midpoint below analyst estimates. Investors viewed the guidance as insufficient relative to the company’s strong Q2 performance, overshadowing the earnings and revenue beats. Carvana’s record quarter overshadowed by soft outlook

About Carvana

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.