Carvana (NYSE:CVNA) Shares Rise 4% - Is It Time to Invest?

Carvana Co. (NYSE:CVNA) saw its shares increase by 4% during trading on a recent Friday. The stock reached a peak of $192.98 and was last seen trading at $192.81. A total of 2,131,848 shares were exchanged during this trading session, marking a decrease of 45% compared to the average volume of 3,841,689 shares. Previously, the stock closed at $185.42.

Wall Street Analysts Predict Growth

Several analysts have recently evaluated Carvana's stock. Piper Sandler upgraded the rating for Carvana from "neutral" to "overweight," setting a target price of $225.00. On the same day, Robert W. Baird increased their target price from $200.00 to $250.00, maintaining a "neutral" rating. In a separate note, Citigroup raised their target from $277.00 to $320.00 and assigned a "buy" rating. JPMorgan Chase & Co. also revised their target price, boosting it from $350.00 to $365.00 while reaffirming an "overweight" rating. Additionally, William Blair maintained an "outperform" rating. Currently, seven equity research analysts suggest holding the stock, while eleven have issued buy recommendations. Consensus ratings from analysts show a "Moderate Buy" status with an average price target of $262.71.

Carvana's Stock Overview

Following some controversy with a Hindenburg short report criticizing Carvana over alleged misconduct, the company now reports a current ratio of 3.64, a quick ratio of 2.12, and a debt-to-equity ratio of 3.82. Carvana's 50-day and 200-day moving averages rest at $227.61 and $214.18, respectively, while its market capitalization is $41.29 billion. The stock has a price-to-earnings ratio standing at 123.36 and a beta of 3.56.

Carvana recently released its quarterly earnings results on February 19. During this period, the company reported an earnings per share (EPS) of $0.56, surpassing the expected $0.29 by $0.27. Their net profit margin was recorded at 1.54% with a notable return on equity of 36.59%. The company's revenue for the quarter was $3.55 billion, exceeding analyst estimates of $3.32 billion. For the current year, analysts predict an EPS of 2.85 for Carvana.

Insider Transactions

In recent news, COO Benjamin E. Huston sold 50,000 shares on March 14, at an average price of $178.49, resulting in a total sale of approximately $8.92 million. Following this transaction, Huston retains 196,278 shares valued at about $35 million. This sale represented a 20.30% reduction in his shares. Similarly, CFO Mark W. Jenkins sold 28,422 shares on February 18 at an average price of $288.85, totaling around $8.21 million. Jenkins now holds 219,962 shares with a total value of $63.54 million, reflecting a decrease in ownership of 11.44%. In total, insiders sold approximately 119,784 shares valued at about $27.52 million over the past three months, with insiders holding 17.12% of the company's shares.

Institutional Investors' Activities

Recently, institutional investors have adjusted their stakes in Carvana. CIBC Asset Management Inc increased its stake by 3.5% during the third quarter, owning 3,366 shares valued at $586,000 after buying an additional 115 shares. Meanwhile, Empowered Funds LLC entered a new investment in the third quarter valued at approximately $494,000. Natixis Advisors LLC raised its holdings by 2.6% in the same quarter, owning 80,885 shares worth about $14.08 million. Swiss National Bank also boosted their stake by 6.9%, acquiring 207,900 shares valued at $36.19 million after a purchase of 13,400 shares. First Horizon Advisors Inc significantly increased its holdings by 363.0%, now holding 250 shares valued at $44,000. Collectively, institutional investors own 56.71% of Carvana's stock.

Overview of Carvana

Carvana Co. operates an online platform for buying and selling used cars in the U.S. It offers customers a means to research vehicles, inspect them through advanced imaging technology, secure financing and warranty options, and complete purchases all from desktops or mobile devices.

Conclusion: Should You Invest $1,000 in Carvana?

Considering an investment in Carvana? It's important to conduct thorough research and analysis. Currently, while analysts rate Carvana as a "Moderate Buy," top-rated analysts have identified five other stocks they recommend over Carvana. Keep informed and evaluate multiple factors before deciding to invest.

Carvana, Stocks, Invest