Carvana Reports Earnings, Surpassing Expectations

Carvana (NYSE:CVNA) released its quarterly earnings report on Wednesday, revealing earnings of $0.56 per share for the quarter. This figure exceeded the analysts' consensus estimate of $0.29 per share by $0.27, as noted by Zacks.

Carvana Stock Performance

Following the earnings announcement, Carvana's stock experienced a decline of 1.4%, closing at $280.68. On that day, approximately 7,250,846 shares changed hands, which is significantly higher than its average trading volume of 3,690,996. Over the past year, Carvana has hit a low of $48.15 and a high of $292.84. The company's market capitalization stands at $58.28 billion, with a remarkable price-to-earnings ratio of 28,096.50. Carvana's beta is 3.37, indicating a high level of volatility.

Insider Transactions

Recent insider transactions at Carvana include a sale by Director Ira J. Platt, who disposed of 25,000 shares on December 10 at an average price of $244.30, totaling $6,107,500. Following this sale, Platt now directly holds 5,227 shares worth approximately $1.28 million. Additionally, CFO Mark W. Jenkins sold 28,422 shares on February 18 at an average price of $288.85, amounting to around $8.21 million. Jenkins now retains 219,962 shares valued at roughly $63.54 million. In the past three months, insiders have sold a total of 173,629 shares valued at about $44.83 million, and 17.18% of the company's stock is held by corporate insiders.

Analysts’ Outlook

In light of Carvana’s recent performance, various equity research analysts have shared their insights. JMP Securities once again emphasized its “market outperform” rating, placing a target price on Carvana shares at $320.00. Needham & Company maintained a “buy” rating while setting a target price of $330.00. Furthermore, Evercore ISI adjusted its target price from $240.00 to $245.00, suggesting an “in-line” rating. Citigroup has upgraded Carvana's rating from “neutral” to “buy,” raising the target price from $195.00 to $277.00. Meanwhile, JPMorgan Chase increased its target price from $300.00 to $350.00 while the stock holds an “overweight” rating. Overall, nine analysts have assigned a hold rating to Carvana, with ten issuing buy ratings, resulting in an average recommendation of “Moderate Buy” and a target price of $249.29.

About Carvana

Carvana Co, along with its subsidiaries, operates a platform for the e-commerce sale of used vehicles in the United States. This innovative platform allows customers to research, inspect, finance, purchase, and arrange the delivery or pick-up of vehicles via their computers or mobile devices.

Carvana, Earnings, Stocks