Barrington Research Downgrades Carvana (NYSE:CVNA) to Market Perform

Carvana (NYSE:CVNA) was downgraded by stock analysts at Barrington Research from an “outperform” rating to a “market perform” rating in a note issued to investors on Wednesday, April 3rd, The Fly reports.

CVNA has been the topic of several other reports. ValuEngine raised shares of Carvana from a “hold” rating to a “buy” rating in a research report on Wednesday, January 2nd. Craig Hallum reduced their price target on shares of Carvana from $48.00 to $40.00 and set a “hold” rating on the stock in a research report on Tuesday, December 4th. Morgan Stanley reduced their price target on shares of Carvana from $23.00 to $21.00 and set an “underweight” rating on the stock in a research report on Thursday, February 28th. Robert W. Baird lifted their price target on shares of Carvana from $58.00 to $65.00 and gave the company an “outperform” rating in a research report on Monday, March 25th. Finally, Zacks Investment Research raised shares of Carvana from a “sell” rating to a “hold” rating in a research report on Monday, March 18th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and nine have given a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $54.73.

Shares of NYSE CVNA traded up $3.54 during midday trading on Wednesday, reaching $69.58. 1,201,040 shares of the stock were exchanged, compared to its average volume of 1,846,587. The company has a market cap of $9.69 billion, a PE ratio of -40.22 and a beta of 2.39. Carvana has a 52-week low of $24.03 and a 52-week high of $72.59. The company has a debt-to-equity ratio of 1.87, a current ratio of 2.01 and a quick ratio of 0.76.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, February 27th. The company reported ($0.55) EPS for the quarter, missing analysts’ consensus estimates of ($0.47) by ($0.08). The firm had revenue of $584.80 million for the quarter, compared to analysts’ expectations of $601.14 million. Carvana had a negative return on equity of 21.06% and a negative net margin of 3.16%. The business’s quarterly revenue was up 120.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.36) earnings per share. On average, analysts anticipate that Carvana will post -1.72 EPS for the current year.

In other Carvana news, major shareholder Ernest C. Garcia II sold 316,678 shares of the business’s stock in a transaction on Wednesday, March 6th. The shares were sold at an average price of $48.13, for a total transaction of $15,241,712.14. Following the completion of the sale, the insider now owns 52,937,458 shares in the company, valued at $2,547,879,853.54. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Ernest C. Garcia II sold 170,023 shares of the business’s stock in a transaction on Friday, March 8th. The shares were sold at an average price of $49.98, for a total transaction of $8,497,749.54. Following the sale, the insider now owns 52,937,458 shares of the company’s stock, valued at approximately $2,645,814,150.84. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,745,592 shares of company stock valued at $151,698,203. Insiders own 13.02% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in CVNA. FMR LLC boosted its holdings in shares of Carvana by 749.8% during the fourth quarter. FMR LLC now owns 3,591,784 shares of the company’s stock valued at $117,487,000 after acquiring an additional 3,169,132 shares during the period. Requisite Energy Fund I LP acquired a new position in shares of Carvana during the fourth quarter valued at $57,470,000. Hound Partners LLC acquired a new position in shares of Carvana during the fourth quarter valued at $43,453,000. Vanguard Group Inc boosted its holdings in shares of Carvana by 41.5% during the third quarter. Vanguard Group Inc now owns 2,621,582 shares of the company’s stock valued at $154,909,000 after acquiring an additional 768,256 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in shares of Carvana by 41.5% during the third quarter. Vanguard Group Inc. now owns 2,621,582 shares of the company’s stock valued at $154,909,000 after acquiring an additional 768,256 shares during the period. Hedge funds and other institutional investors own 34.62% of the company’s stock.

About Carvana

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying used cars in the United States. The company purchases, reconditions, sells, and delivers vehicles. 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.

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Analyst Recommendations for Carvana (NYSE:CVNA)

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