Zacks Investment Research Lowers Carvana (NYSE:CVNA) to Sell

Carvana (NYSE:CVNA) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a note issued to investors on Monday, Zacks.com reports.

According to Zacks, “Carvana Co. provide eCommerce platform for buying used cars. Carvana Co. is headquartered in Phoenix, Arizona. “

CVNA has been the topic of several other research reports. Wells Fargo & Co restated a “buy” rating and issued a $95.00 target price on shares of Carvana in a report on Tuesday, October 29th. Morgan Stanley restated an “underweight” rating and issued a $30.00 target price (up previously from $29.00) on shares of Carvana in a report on Tuesday, October 15th. Barrington Research restated a “hold” rating on shares of Carvana in a report on Monday, August 5th. Oppenheimer initiated coverage on shares of Carvana in a report on Thursday, September 19th. They issued an “outperform” rating and a $95.00 target price on the stock. Finally, Wedbush upped their price objective on shares of Carvana from $70.00 to $75.00 and gave the company a “neutral” rating in a report on Thursday. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and nine have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $79.40.

Shares of NYSE:CVNA traded down $0.47 during mid-day trading on Monday, reaching $77.49. 1,512,037 shares of the company’s stock were exchanged, compared to its average volume of 1,693,001. The firm has a market capitalization of $11.57 billion, a price-to-earnings ratio of -44.79 and a beta of 2.20. The business’s fifty day moving average price is $74.12 and its 200-day moving average price is $70.02. The company has a debt-to-equity ratio of 2.10, a quick ratio of 1.40 and a current ratio of 3.83. Carvana has a twelve month low of $28.44 and a twelve month high of $85.97.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, November 6th. The company reported ($0.56) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.39) by ($0.17). The firm had revenue of $1.09 billion during the quarter, compared to analyst estimates of $997.46 million. Carvana had a negative net margin of 3.49% and a negative return on equity of 30.55%. Carvana’s quarterly revenue was up 104.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.40) EPS. Analysts predict that Carvana will post -1.82 EPS for the current fiscal year.

In other Carvana news, Director Ira J. Platt sold 1,300 shares of the business’s stock in a transaction dated Tuesday, August 27th. The shares were sold at an average price of $84.50, for a total value of $109,850.00. Following the transaction, the director now directly owns 23,682 shares in the company, valued at $2,001,129. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Ira J. Platt sold 10,700 shares of the business’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $84.51, for a total transaction of $904,257.00. Following the completion of the transaction, the director now owns 33,082 shares in the company, valued at $2,795,759.82. The disclosure for this sale can be found here. Insiders sold a total of 85,000 shares of company stock valued at $6,890,327 over the last ninety days. 13.02% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Resources Investment Advisors LLC. lifted its stake in shares of Carvana by 150.0% during the 2nd quarter. Resources Investment Advisors LLC. now owns 500 shares of the company’s stock valued at $31,000 after buying an additional 300 shares in the last quarter. Aperio Group LLC purchased a new stake in shares of Carvana during the 2nd quarter valued at approximately $75,000. FNY Investment Advisers LLC lifted its stake in shares of Carvana by 12,800.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 1,290 shares of the company’s stock valued at $80,000 after buying an additional 1,280 shares in the last quarter. Meridian Wealth Management LLC purchased a new stake in shares of Carvana during the 2nd quarter valued at approximately $118,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in shares of Carvana during the 2nd quarter valued at approximately $158,000. Hedge funds and other institutional investors own 37.06% of the company’s stock.

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 proprietary 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.

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