Carvana (NYSE:CVNA) Shares Down 6.9% on Insider Selling

Carvana Co. (NYSE:CVNA)’s stock price was down 6.9% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $65.38 and last traded at $65.2290. Approximately 1,355,765 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 15,836,649 shares. The stock had previously closed at $70.04.

Specifically, Director Ira J. Platt sold 15,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the transaction, the director directly owned 186,470 shares in the company, valued at approximately $12,648,260.10. This trade represents a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director J Danforth Quayle sold 14,525 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the sale, the director owned 214,960 shares in the company, valued at approximately $15,047,200. This trade represents a 6.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CVNA. Wells Fargo & Company raised their price target on shares of Carvana from $85.00 to $95.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Wedbush decreased their price objective on Carvana from $100.00 to $85.00 and set an “outperform” rating for the company in a report on Thursday, February 19th. Citigroup reaffirmed an “outperform” rating on shares of Carvana in a research report on Friday, May 1st. DA Davidson lifted their target price on Carvana from $64.00 to $67.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Finally, UBS Group reiterated a “buy” rating and issued a $104.00 price target (up from $97.00) on shares of Carvana in a research report on Thursday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Carvana currently has an average rating of “Moderate Buy” and a consensus target price of $93.14.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new-car sales, with a Dallas location serving as a test site for its “playground” showroom model and online purchase flow. The move could broaden Carvana’s addressable market and strengthen the growth narrative. Carvana’s new vehicle strategy turns dealership into ‘playground,’ test-drive center with sales all online
• Positive Sentiment: Wall Street commentary remains constructive, with recent coverage noting analyst price targets implying roughly 37% upside and continued earnings estimate support. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Recent earnings momentum also supports the bullish case, as Carvana previously beat expectations on both revenue and EPS, reinforcing confidence in its operating execution. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not necessarily indicate a broader negative signal. SEC Form 4 filing for Ira J. Platt

Carvana Stock Down 6.5%

The stock has a market cap of $71.82 billion, a price-to-earnings ratio of 39.63, a PEG ratio of 11.63 and a beta of 3.45. The stock has a 50 day simple moving average of $71.47 and a 200 day simple moving average of $75.25. 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 (NYSE:CVNA) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $1.37. The business had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. As a group, analysts expect that Carvana Co. will post 1.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Carvana

Large investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD lifted its holdings in shares of Carvana by 8.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after purchasing an additional 1,407,762 shares in the last quarter. Vanguard Group Inc. grew its holdings in Carvana by 24.7% during the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock worth $7,082,804,000 after buying an additional 3,328,115 shares in the last quarter. State Street Corp raised its position in Carvana by 93.7% in the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after buying an additional 2,764,759 shares during the last quarter. Capital Research Global Investors lifted its stake in Carvana by 42.9% during the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after acquiring an additional 1,711,144 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in Carvana by 55.4% during the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock worth $1,632,763,000 after acquiring an additional 1,382,852 shares during the last quarter. Institutional investors own 56.71% of the company’s stock.

Carvana Company Profile

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.