Carvana (NYSE:CVNA) Trading Down 6.4% After Insider Selling

Carvana Co. (NYSE:CVNA)’s share price dropped 6.4% during trading on Friday following insider selling activity. The company traded as low as $124.11 and last traded at $124.38. Approximately 3,523,063 shares traded hands during trading, a decline of 37% from the average daily volume of 5,574,333 shares. The stock had previously closed at $132.88.

Specifically, major shareholder Ernest C. Garcia II sold 75,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 26th. The shares were sold at an average price of $126.97, for a total transaction of $9,522,750.00. Following the completion of the sale, the insider now directly owns 787,500 shares in the company, valued at $99,988,875. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other Carvana news, insider Thomas Taira sold 68,556 shares of the firm’s stock in a transaction on Friday, June 14th. The stock was sold at an average price of $102.74, for a total transaction of $7,043,443.44. Following the transaction, the insider now owns 186,397 shares in the company, valued at approximately $19,150,427.78. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, major shareholder Ernest C. Garcia II sold 75,000 shares of the company’s stock in a transaction on Wednesday, June 26th. The shares were sold at an average price of $126.97, for a total value of $9,522,750.00. Following the sale, the insider now owns 787,500 shares of the company’s stock, valued at $99,988,875. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,801,829 shares of company stock valued at $193,562,233. 17.12% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

CVNA has been the subject of a number of research reports. Evercore ISI raised their price objective on shares of Carvana from $111.00 to $118.00 and gave the company an “in-line” rating in a report on Thursday, June 20th. William Blair reissued an “outperform” rating on shares of Carvana in a research note on Thursday, May 2nd. TD Cowen raised their target price on Carvana from $58.00 to $70.00 and gave the stock a “hold” rating in a research report on Monday, April 29th. JMP Securities upped their price target on Carvana from $135.00 to $150.00 and gave the company a “market outperform” rating in a research report on Friday, June 7th. Finally, JPMorgan Chase & Co. raised their price objective on Carvana from $130.00 to $150.00 and gave the stock an “overweight” rating in a research report on Monday, June 10th. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $87.29.

Carvana Stock Performance

The business has a fifty day moving average of $106.59 and a 200-day moving average of $77.57. The company has a market capitalization of $25.66 billion, a P/E ratio of 54.55 and a beta of 3.29.

Carvana (NYSE:CVNA) last issued its quarterly earnings data on Wednesday, May 1st. The company reported ($0.41) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.76) by $0.35. The business had revenue of $3.06 billion for the quarter, compared to analyst estimates of $2.72 billion. Sell-side analysts anticipate that Carvana Co. will post -0.75 EPS for the current year.

Institutional Investors Weigh In On Carvana

Institutional investors and hedge funds have recently bought and sold shares of the stock. Blue Trust Inc. purchased a new stake in Carvana in the 4th quarter valued at about $29,000. Plato Investment Management Ltd purchased a new position in Carvana in the first quarter worth $55,000. Parallel Advisors LLC grew its stake in Carvana by 39.0% in the 4th quarter. Parallel Advisors LLC now owns 692 shares of the company’s stock valued at $37,000 after purchasing an additional 194 shares during the period. Tidemark LLC purchased a new stake in shares of Carvana during the 4th quarter valued at $50,000. Finally, Headlands Technologies LLC bought a new stake in shares of Carvana during the 4th quarter worth $87,000. 56.71% of the stock is owned by hedge funds and other institutional investors.

Carvana Company Profile

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.