Carvana (NYSE:CVNA) Reaches New 12-Month High – Should You Buy?

Carvana Co. (NYSE:CVNA)’s share price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $288.30 and last traded at $286.57, with a volume of 31301 shares changing hands. The stock had previously closed at $285.33.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Evercore ISI lifted their price target on Carvana from $240.00 to $245.00 and gave the company an “in-line” rating in a report on Tuesday, December 3rd. Piper Sandler lifted their price target on Carvana from $151.00 to $225.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Robert W. Baird lifted their price target on Carvana from $200.00 to $250.00 and gave the company a “neutral” rating in a report on Thursday. Wedbush restated a “neutral” rating and issued a $250.00 target price on shares of Carvana in a report on Thursday, February 6th. Finally, Royal Bank of Canada boosted their target price on Carvana from $280.00 to $320.00 and gave the stock an “outperform” rating in a report on Thursday. Nine equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company’s stock. According to MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and an average target price of $259.00.

Carvana Trading Down 12.0 %

The company has a debt-to-equity ratio of 18.99, a current ratio of 3.25 and a quick ratio of 2.12. The company has a market cap of $51.50 billion, a price-to-earnings ratio of 24,827.83 and a beta of 3.37. The business has a 50 day simple moving average of $234.84 and a 200 day simple moving average of $206.90.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 19th. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.27. The firm had revenue of $3.55 billion for the quarter, compared to analyst estimates of $3.32 billion. As a group, equities analysts forecast that Carvana Co. will post 0.87 EPS for the current year.

Insider Activity

In other Carvana news, Director Ira J. Platt sold 25,000 shares of the stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $244.30, for a total value of $6,107,500.00. Following the completion of the sale, the director now directly owns 5,227 shares in the company, valued at $1,276,956.10. This represents a 82.71 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Daniel J. Gill sold 44,000 shares of the stock in a transaction dated Monday, December 2nd. The stock was sold at an average price of $259.47, for a total value of $11,416,680.00. Following the completion of the sale, the insider now owns 191,225 shares of the company’s stock, valued at $49,617,150.75. This trade represents a 18.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 173,629 shares of company stock valued at $44,833,799 over the last 90 days. 17.12% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Quent Capital LLC bought a new position in shares of Carvana during the fourth quarter worth about $28,000. Global Retirement Partners LLC grew its stake in Carvana by 109.9% in the fourth quarter. Global Retirement Partners LLC now owns 149 shares of the company’s stock valued at $30,000 after purchasing an additional 78 shares in the last quarter. Rialto Wealth Management LLC bought a new position in Carvana in the fourth quarter valued at approximately $31,000. ORG Wealth Partners LLC bought a new position in Carvana in the fourth quarter valued at approximately $34,000. Finally, Capital Performance Advisors LLP bought a new position in Carvana in the third quarter valued at approximately $40,000. 56.71% of the stock is currently owned by institutional investors.

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 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.