Carvana (NYSE:CVNA) Posts Quarterly Earnings Results, Beats Estimates By $3.12 EPS

Carvana (NYSE:CVNA) posted its quarterly earnings results on Wednesday. The company reported $4.22 EPS for the quarter, beating analysts’ consensus estimates of $1.10 by $3.12, FiscalAI reports. The company had revenue of $5.60 billion during the quarter, compared to analyst estimates of $5.24 billion. Carvana had a net margin of 3.44% and a return on equity of 30.62%.

Carvana Stock Up 3.1%

Shares of NYSE CVNA traded up $11.02 during mid-day trading on Wednesday, hitting $361.96. 5,163,797 shares of the stock traded hands, compared to its average volume of 3,936,717. The company has a market cap of $78.74 billion, a price-to-earnings ratio of 82.64 and a beta of 3.57. The stock has a fifty day moving average price of $430.34 and a 200-day moving average price of $382.24. Carvana has a 52 week low of $148.25 and a 52 week high of $486.89. The company has a debt-to-equity ratio of 1.63, a quick ratio of 2.55 and a current ratio of 4.05.

Insiders Place Their Bets

In other news, Director Michael E. Maroone sold 30,928 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $400.34, for a total value of $12,381,715.52. Following the sale, the director directly owned 143,573 shares of the company’s stock, valued at $57,478,014.82. This represents a 17.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul W. Breaux sold 20,000 shares of the stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $438.50, for a total transaction of $8,770,000.00. Following the completion of the transaction, the insider owned 69,289 shares of the company’s stock, valued at approximately $30,383,226.50. The trade was a 22.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 420,351 shares of company stock valued at $179,589,049 in the last 90 days. Corporate insiders own 17.12% of the company’s stock.

Institutional Investors Weigh In On Carvana

A number of hedge funds and other institutional investors have recently bought and sold shares of CVNA. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in Carvana during the 2nd quarter valued at $38,000. GW&K Investment Management LLC raised its stake in shares of Carvana by 155.6% in the fourth quarter. GW&K Investment Management LLC now owns 138 shares of the company’s stock worth $58,000 after purchasing an additional 84 shares during the last quarter. Greenline Wealth Management LLC bought a new position in shares of Carvana during the fourth quarter valued at $60,000. CIBC Private Wealth Group LLC boosted its position in shares of Carvana by 147.2% during the fourth quarter. CIBC Private Wealth Group LLC now owns 178 shares of the company’s stock valued at $75,000 after buying an additional 106 shares during the last quarter. Finally, DV Equities LLC purchased a new stake in shares of Carvana during the fourth quarter valued at $84,000. Hedge funds and other institutional investors own 56.71% of the company’s stock.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Shares are rallying into earnings after opening weaker, suggesting short-term bullish positioning and buyer interest ahead of the print. Live Analysis: Will Carvana Soar After Earnings Tonight?
• Positive Sentiment: Fund commentary and unit-growth data indicate Carvana continues to grow vehicle sales while lending fears have eased, giving a fundamental tailwind if earnings show improving margins or unit economics. Carvana Co. (CVNA) Sustains Rapid Unit Growth as Lending Fears Ease
• Neutral Sentiment: Heavy options activity and “big money” positioning signal traders are hedging for a sizable post-earnings move; this can amplify swings but doesn’t indicate direction by itself. 6CVNA : Carvana’s Options: A Look at What the Big Money is Thinking
• Neutral Sentiment: Analysts and market commentators expect a large post-earnings move and heightened volatility; traders should anticipate wider intraday ranges and possible gap moves after the release. Carvana Reports Earnings Later Today. Here’s How Much the Stock Is Expected to Move
• Neutral Sentiment: Technical commentary points to ~ $390 as a near-term resistance area and highlights the stock’s volatile run after a sharp pullback from recent highs; useful for short-term trade planning. Options Corner: CVNA’s Comeback Story
• Negative Sentiment: A new investor lawsuit investigation by Pomerantz introduces legal and reputational risk that can pressure sentiment and adds an overhang independent of earnings. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On-Behalf of Investors of Carvana Co. – CVNA
• Negative Sentiment: Shares have already suffered a steep decline in recent weeks and trade well below many Wall Street targets, raising downside risk if the quarter disappoints. Carvana (CVNA) Trading 40% Below Wall Street Targets After 25% Monthly Slide

Analysts Set New Price Targets

Several brokerages have recently commented on CVNA. Evercore upped their price objective on shares of Carvana from $425.00 to $430.00 in a research note on Tuesday, January 27th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Carvana in a research report on Monday, December 29th. BTIG Research lifted their price objective on Carvana from $450.00 to $535.00 and gave the stock a “buy” rating in a research report on Thursday, January 15th. Wells Fargo & Company boosted their target price on Carvana from $500.00 to $525.00 and gave the company an “overweight” rating in a research note on Tuesday, January 27th. Finally, Citigroup raised their price target on Carvana from $445.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Nineteen investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $474.27.

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.