Carvana (NYSE:CVNA) Trading Down 18.1% After Insider Selling

Carvana Co. (NYSE:CVNA) dropped 18.1% during trading on Thursday following insider selling activity. The company traded as low as $190.60 and last traded at $185.41. Approximately 2,312,933 shares were traded during trading, a decline of 41% from the average daily volume of 3,923,042 shares. The stock had previously closed at $226.32.

Specifically, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction on Monday, March 31st. The shares were sold at an average price of $207.32, for a total transaction of $10,366,000.00. Following the completion of the sale, the chief operating officer now directly owns 128,116 shares in the company, valued at $26,561,009.12. This represents a 28.07 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Mark W. Jenkins sold 43,433 shares of the company’s stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $209.27, for a total transaction of $9,089,223.91. Following the sale, the chief financial officer now directly owns 214,678 shares in the company, valued at $44,925,665.06. This trade represents a 16.83 % decrease in their position. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several brokerages have issued reports on CVNA. JPMorgan Chase & Co. dropped their price target on Carvana from $365.00 to $325.00 and set an “overweight” rating on the stock in a research note on Thursday, March 27th. Morgan Stanley upgraded shares of Carvana from an “underweight” rating to an “overweight” rating in a research note on Monday. Wedbush set a $250.00 target price on Carvana and gave the company a “neutral” rating in a research report on Wednesday, February 19th. Piper Sandler upgraded Carvana from a “neutral” rating to an “overweight” rating in a research note on Monday. Finally, Robert W. Baird increased their price target on shares of Carvana from $200.00 to $250.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. Six research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $261.53.

Carvana Price Performance

The firm has a market capitalization of $39.44 billion, a P/E ratio of 117.85 and a beta of 3.56. The business’s 50-day simple moving average is $226.26 and its 200 day simple moving average is $219.11. The company has a quick ratio of 2.12, a current ratio of 3.64 and a debt-to-equity ratio of 3.82.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, February 19th. The company reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.27. Carvana had a net margin of 1.54% and a return on equity of 36.59%. The company had revenue of $3.55 billion for the quarter, compared to analysts’ expectations of $3.32 billion. Sell-side analysts forecast that Carvana Co. will post 2.85 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Quent Capital LLC purchased a new position in shares of Carvana in the fourth quarter valued at about $28,000. Global Retirement Partners LLC increased its holdings in Carvana by 109.9% during the 4th quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after purchasing an additional 78 shares during the period. Rialto Wealth Management LLC purchased a new stake in Carvana in the 4th quarter worth approximately $31,000. ORG Wealth Partners LLC purchased a new stake in Carvana in the fourth quarter worth $34,000. Finally, Versant Capital Management Inc bought a new stake in Carvana in the fourth quarter valued at $42,000. Institutional investors own 56.71% of the company’s stock.

Carvana Company Profile

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.