B. Riley Brokers Lower Earnings Estimates for Carvana Co (CVNA)

Carvana Co (NYSE:CVNA) – Stock analysts at B. Riley dropped their FY2020 earnings estimates for shares of Carvana in a research note issued on Thursday, November 8th. B. Riley analyst S. Sinha now anticipates that the company will earn $0.31 per share for the year, down from their prior forecast of $0.42. B. Riley has a “Buy” rating and a $76.00 price target on the stock.

A number of other research firms have also recently commented on CVNA. Citigroup boosted their price target on Carvana from $67.00 to $77.00 and gave the stock a “buy” rating in a report on Tuesday, September 11th. They noted that the move was a valuation call. Stephens assumed coverage on Carvana in a report on Tuesday, September 4th. They issued an “equal weight” rating for the company. Craig Hallum reaffirmed a “hold” rating on shares of Carvana in a report on Thursday, September 13th. Wells Fargo & Co upped their target price on Carvana from $60.00 to $72.00 and gave the stock an “outperform” rating in a report on Monday, October 1st. Finally, Wolfe Research assumed coverage on Carvana in a report on Tuesday, October 2nd. They issued an “outperform” rating for the company. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and ten have given a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $59.05.

Shares of Carvana stock traded down $1.53 during trading on Friday, reaching $49.94. 45,502 shares of the company’s stock were exchanged, compared to its average volume of 1,708,903. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.78 and a current ratio of 1.47. Carvana has a 1-year low of $13.58 and a 1-year high of $72.59. The stock has a market capitalization of $6.31 billion, a P/E ratio of -41.30 and a beta of 2.13.

Carvana (NYSE:CVNA) last posted its quarterly earnings results on Wednesday, November 7th. The company reported ($0.40) EPS for the quarter, missing analysts’ consensus estimates of ($0.37) by ($0.03). Carvana had a negative return on equity of 33.44% and a negative net margin of 5.30%. The business had revenue of $535.00 million for the quarter, compared to analyst estimates of $509.09 million. During the same period last year, the firm posted ($0.29) EPS. Carvana’s quarterly revenue was up 137.8% on a year-over-year basis.

In other Carvana news, major shareholder Ernest C. Garcia II sold 191,396 shares of the company’s stock in a transaction dated Wednesday, November 7th. The stock was sold at an average price of $45.40, for a total value of $8,689,378.40. Following the sale, the insider now owns 52,937,458 shares in the company, valued at approximately $2,403,360,593.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Ernest C. Garcia II sold 13,249 shares of the company’s stock in a transaction dated Tuesday, October 2nd. The shares were sold at an average price of $57.39, for a total value of $760,360.11. Following the completion of the sale, the insider now owns 52,937,458 shares in the company, valued at approximately $3,038,080,714.62. The disclosure for this sale can be found here. Insiders sold a total of 2,748,686 shares of company stock worth $164,026,447 in the last quarter. Corporate insiders own 21.69% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Whale Rock Capital Management LLC acquired a new position in shares of Carvana in the 2nd quarter valued at $35,039,000. 683 Capital Management LLC boosted its position in shares of Carvana by 11.4% in the second quarter. 683 Capital Management LLC now owns 1,561,634 shares of the company’s stock valued at $64,964,000 after acquiring an additional 160,294 shares during the period. Fiera Capital Corp bought a new stake in shares of Carvana in the second quarter valued at approximately $1,082,000. Brown Advisory Inc. bought a new stake in shares of Carvana in the first quarter valued at approximately $483,000. Finally, Russell Investments Group Ltd. boosted its position in shares of Carvana by 622.9% in the second quarter. Russell Investments Group Ltd. now owns 10,084 shares of the company’s stock valued at $419,000 after acquiring an additional 8,689 shares during the period. Hedge funds and other institutional investors own 25.96% of the company’s stock.

Carvana Company Profile

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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Earnings History and Estimates for Carvana (NYSE:CVNA)

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