Carvana (NYSE:CVNA) Shares Gap Up – What’s Next?

Carvana Co. (NYSE:CVNA) shares gapped up before the market opened on Thursday. The stock had previously closed at $59.05, but opened at $65.28. Carvana shares last traded at $68.8110, with a volume of 3,873,086 shares.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record third-quarter revenue of approximately $8.04 billion, up 42.4% year over year, with retail unit sales rising nearly 40% to roughly 217,385 vehicles. The strong volume growth exceeded revenue expectations and overshadowed the earnings miss. Carvana Q3 2026 Earnings Call Highlights
• Positive Sentiment: Morgan Stanley named Carvana a top pick, while UBS maintained a Buy rating. Barclays raised its price target to $82 from $80, and Citizens JMP increased its target to $85 from $83, suggesting analysts see meaningful upside if growth continues. Morgan Stanley Names Carvana a Top Pick
• Positive Sentiment: Needham retained a Buy rating despite lowering its target to $100, arguing that the recent selloff went too far. Commentary also pointed to positive free cash flow and an improved net-debt position as signs of strengthening financial health. Needham’s $100 Target
• Neutral Sentiment: CEO comments that artificial intelligence could simplify used-car buying offer a potential long-term efficiency and customer-experience opportunity, but no specific financial benefit or implementation timeline was announced. Carvana CEO Says AI Could Simplify Used-Car Buying
• Negative Sentiment: Adjusted earnings of $0.39 per share missed estimates, as higher logistics expenses, interest costs and declining unit profitability pressured margins despite record sales. Analysts warn that rising costs, substantial debt and ambitious expansion plans could limit financial flexibility. CVNA Q3 Earnings Miss on Higher Costs
• Negative Sentiment: BNP Paribas Exane and DA Davidson maintained Neutral ratings with $67 targets, underscoring skepticism that the stock’s premium valuation is justified without further margin improvement.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on CVNA shares. Wells Fargo & Company reaffirmed an “overweight” rating and set a $75.00 price target (down from $80.00) on shares of Carvana in a research note on Friday, October 23rd. BTIG Research set a $82.00 price objective on shares of Carvana and gave the stock a “buy” rating in a research note on Thursday. BNP Paribas Exane reduced their target price on shares of Carvana from $69.00 to $67.00 and set a “neutral” rating on the stock in a report on Thursday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $85.00 target price on shares of Carvana in a research report on Thursday. Finally, Bank of America reaffirmed a “neutral” rating on shares of Carvana in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $82.09.

Carvana Trading Down 0.2%

The company’s 50 day simple moving average is $65.78 and its 200-day simple moving average is $69.42. The firm has a market cap of $75.00 billion, a P/E ratio of 34.21, a P/E/G ratio of 2.08 and a beta of 3.55. The company has a quick ratio of 2.33, a current ratio of 4.05 and a debt-to-equity ratio of 0.86.

Carvana (NYSE:CVNA) last released its earnings results on Wednesday, October 28th. The company reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.05). Carvana had a net margin of 6.21% and a return on equity of 34.77%. The business had revenue of $8.04 billion for the quarter, compared to the consensus estimate of $7.71 billion. During the same period in the prior year, the company posted $1.03 EPS. The company’s quarterly revenue was up 42.4% compared to the same quarter last year. As a group, research analysts predict that Carvana Co. will post 1.58 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Carvana news, Director Ira Platt sold 15,000 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $75.50, for a total value of $1,132,500.00. Following the sale, the director owned 186,470 shares in the company, valued at $14,078,485. This trade represents a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Thomas Taira sold 16,789 shares of Carvana stock in a transaction on Monday, September 14th. The stock was sold at an average price of $70.58, for a total value of $1,184,967.62. Following the sale, the insider owned 366,987 shares of the company’s stock, valued at approximately $25,901,942.46. This trade represents a 4.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 358,161 shares of company stock worth $24,164,285 over the last ninety days. Corporate insiders own 15.19% of the company’s stock.

Institutional Investors Weigh In On Carvana

Several large investors have recently added to or reduced their stakes in the stock. Provenance Wealth Advisors LLC bought a new position in shares of Carvana during the 3rd quarter worth approximately $25,000. Ascentis Independent Advisors purchased a new stake in Carvana during the first quarter valued at approximately $26,000. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Carvana by 152.6% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock valued at $30,000 after acquiring an additional 58 shares in the last quarter. Transamerica Financial Advisors LLC boosted its stake in Carvana by 558.0% in the second quarter. Transamerica Financial Advisors LLC now owns 454 shares of the company’s stock valued at $30,000 after acquiring an additional 385 shares in the last quarter. Finally, GoalVest Advisory LLC boosted its stake in Carvana by 400.0% in the second quarter. GoalVest Advisory LLC now owns 500 shares of the company’s stock valued at $33,000 after acquiring an additional 400 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

About Carvana

Carvana Co (NYSE: CVNA) is an online automotive retailer that sells used vehicles through its digital platform. Customers can browse vehicles, review detailed descriptions and vehicle history information, arrange financing, complete transactions online and choose home delivery or pickup at a Carvana location.

The company also provides vehicle trade-in services and offers related products, including vehicle protection plans and other automotive services. Carvana is known for its automated, glass-enclosed vehicle vending machines, which provide an alternative pickup experience in select markets.

Founded in 2012 and headquartered in Tempe, Arizona, Carvana began operations as an online used-car retailer in 2013 and went public in 2017.