Carvana (NYSE:CVNA) Posts Earnings Results, Beats Expectations By $0.27 EPS

Carvana (NYSE:CVNA) announced its quarterly earnings results on Wednesday. The company reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.27, Zacks reports. The firm had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.32 billion. Carvana had a net margin of 1.54% and a return on equity of 446.67%.

Carvana Stock Down 7.1 %

CVNA stock traded down $17.48 during midday trading on Friday, reaching $230.25. 2,230,468 shares of the company were exchanged, compared to its average volume of 3,940,322. The company has a debt-to-equity ratio of 18.99, a quick ratio of 2.12 and a current ratio of 3.25. Carvana has a 1-year low of $49.38 and a 1-year high of $292.84. The stock’s 50-day simple moving average is $234.85 and its 200 day simple moving average is $207.18. The company has a market cap of $47.81 billion, a price-to-earnings ratio of 146.58 and a beta of 3.37.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CVNA. DA Davidson boosted their target price on shares of Carvana from $220.00 to $260.00 and gave the company a “neutral” rating in a research report on Thursday. JPMorgan Chase & Co. boosted their target price on shares of Carvana from $300.00 to $350.00 and gave the company an “overweight” rating in a research report on Friday, January 31st. Royal Bank of Canada boosted their target price on shares of Carvana from $280.00 to $320.00 and gave the company an “outperform” rating in a research report on Thursday. Wells Fargo & Company lowered their price target on shares of Carvana from $300.00 to $275.00 and set an “overweight” rating on the stock in a report on Monday, January 6th. Finally, Morgan Stanley raised shares of Carvana from an “underweight” rating to an “equal weight” rating and lifted their price target for the company from $110.00 to $260.00 in a report on Tuesday, November 5th. Nine analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $262.53.

Insiders Place Their Bets

In other news, insider Daniel J. Gill sold 44,000 shares of Carvana stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $259.47, for a total value of $11,416,680.00. Following the transaction, the insider now directly owns 191,225 shares of the company’s stock, valued at $49,617,150.75. The trade was a 18.71 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Ryan S. Keeton sold 24,845 shares of Carvana stock in a transaction on Thursday, December 12th. The shares were sold at an average price of $247.90, for a total transaction of $6,159,075.50. Following the completion of the transaction, the insider now directly owns 151,029 shares in the company, valued at $37,440,089.10. The trade was a 14.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 173,629 shares of company stock valued at $44,833,799. 17.12% of the stock is owned by corporate insiders.

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.