Carvana Co.

New York Stock Exchange
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Slightly Bullish +15

Jefferies Financial Group Cuts Carvana (NYSE:CVNA) Price Target to $90. ...

📉 Jefferies Financial Group cut its price target for Carvana from $95.00 to $90.00 while retaining a buy rating.

📈 Citizens JMP raised its price target to $103.00 and Needham & Company set a $120.00 target, creating a consensus average of $92.92.

💰 Carvana reported Q1 earnings of $1.69 EPS, beating the $0.32 consensus estimate by $1.37.

📊 Revenue reached $6.43 billion, surpassing analyst estimates of $6.12 billion for the quarter.

🏆 The company achieved a 41.46% return on equity and a 6.40% net margin.

👔 Director J Danforth Quayle sold 14,525 shares at an average price of $70.00 in June.

👔 Director Ira J. Platt sold 15,000 shares at an average price of $67.83 in mid-June.

📉 Corporate insiders collectively sold 396,962 shares valued at $28.5 million in the last quarter.

🏦 Institutional investors own 56.71% of Carvana's outstanding stock.

🚀 Annis Gardner Whiting Capital Advisors increased its holdings by 152.6% in the first quarter.

🛒 Carvana operates as an online-only retailer offering end-to-end vehicle buying with a seven-day return policy.

📅 Analysts expect full-year EPS of $1.58 for the current fiscal year.

Bullish Signals
  • Carvana significantly beat earnings expectations, reporting $1.69 EPS versus a consensus of $0.32.
  • Revenue of $6.43 billion exceeded analyst estimates of $6.12 billion.
  • The company demonstrated strong profitability with a 41.46% return on equity and 6.40% net margin.
  • Multiple analysts, including Needham & Company and Citizens JMP, have raised price targets or maintained strong buy ratings.
  • Hedge funds like Annis Gardner Whiting Capital Advisors increased their stakes significantly in the first quarter.
Risk Factors
  • Jefferies Financial Group reduced its price target from $95.00 to $90.00, indicating a slight bearish adjustment.
  • Corporate insiders sold a substantial amount of stock, with directors Quayle and Platt selling over $2 million combined in June.
  • Total insider sales in the last quarter reached $28.5 million, representing a 6.33% to 7.45% decrease in ownership for specific directors.
Full Analysis
Jefferies Financial Group lowered its price target for Carvana (NYSE:CVNA) from $95.00 to $90.00 while maintaining a buy rating, according to a research note released on Tuesday morning. This adjustment contrasts with recent bullish moves from other analysts, including Citizens JMP raising their target to $103.00 and Needham & Company setting a $120.00 target, resulting in a current consensus average target price of $92.92. Carvana recently reported strong quarterly earnings on April 29th, posting $1.69 per share compared to the analyst consensus of $0.32, significantly beating expectations by $1.37. The company generated revenue of $6.43 billion against estimates of $6.12 billion, achieving a return on equity of 41.46% and a net margin of 6.40%. Analysts currently project full-year earnings per share of 1.58. Insider trading activity shows mixed signals with directors J Danforth Quayle and Ira J. Platt selling shares totaling over $2 million in June under pre-arranged Rule 10b5-1 plans, while corporate insiders collectively own 15.19% of the stock. Conversely, several hedge funds increased their stakes in the first quarter or fourth quarter, with Annis Gardner Whiting Capital Advisors lifting holdings by 152.6%.