Carvana (NYSE:CVNA) Shares Gap Down After Analyst Downgrade

Carvana Co. (NYSE:CVNA) shares gapped down prior to trading on Thursday after Wedbush lowered their price target on the stock from $500.00 to $425.00. The stock had previously closed at $361.53, but opened at $341.90. Wedbush currently has an outperform rating on the stock. Carvana shares last traded at $336.3730, with a volume of 6,173,251 shares.

CVNA has been the topic of several other research reports. Bank of America cut their price target on Carvana from $460.00 to $400.00 and set a “buy” rating on the stock in a research note on Thursday. Argus assumed coverage on Carvana in a research note on Monday, December 15th. They issued a “buy” rating and a $500.00 target price on the stock. Barclays lowered their price target on Carvana from $530.00 to $450.00 and set an “overweight” rating for the company in a research report on Friday. Zacks Research downgraded shares of Carvana from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 4th. Finally, Wells Fargo & Company reduced their price objective on shares of Carvana from $525.00 to $425.00 and set an “overweight” rating for the company in a research note on Thursday. Twenty analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Carvana presently has an average rating of “Moderate Buy” and a consensus target price of $443.55.

Insider Activity

In related news, COO Benjamin E. Huston sold 40,000 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $439.50, for a total transaction of $17,580,000.00. Following the transaction, the chief operating officer owned 100,758 shares in the company, valued at $44,283,141. This represents a 28.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Thomas Taira sold 30,952 shares of Carvana stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $435.96, for a total transaction of $13,493,833.92. Following the completion of the sale, the insider directly owned 69,880 shares of the company’s stock, valued at approximately $30,464,884.80. This trade represents a 30.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 420,351 shares of company stock valued at $179,589,049 over the last three months. Corporate insiders own 17.12% of the company’s stock.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q4 results were materially stronger than feared — revenue rose ~58% YoY and EPS crushed estimates, and management highlighted record retail/wholesale volume and a path to EBITDA growth. This beat is the main bullish driver behind buying interest today. Carvana Q4 2025 Earnings Call Highlights
• Positive Sentiment: Wedbush and several other firms continue to rate CVNA favorably (Wedbush kept an outperform/buy stance even after trimming its target), supporting conviction among growth‑oriented analysts despite lower targets. Wedbush Remains a Buy on Carvana Co (CVNA)
• Neutral Sentiment: Analysts and models point to restored profitability but warn earnings are sensitive to gross profit per unit (GPU) swings — that caps upside until margin durability is proven. Carvana: Profitability Restored, But GPU Sensitivity Caps The Upside
• Negative Sentiment: Multiple firms trimmed price targets and one major shop (DA Davidson) cut to $320 and flagged a neutral view, which triggered early‑session selling and widened intraday swings. Analyst downgrades/target cuts are pressuring sentiment. Carvana Shares Gap Down After Analyst Downgrade
• Negative Sentiment: Investors pressed management on accounting and disclosure during the call; the CFO’s defense and subsequent media scrutiny (and reports of an investigator outreach) have raised governance concerns that could weigh on the stock until clarity is provided. Carvana fails to impress investors; CFO defends accounting practices

Institutional Trading of Carvana

Several hedge funds have recently bought and sold shares of CVNA. First Horizon Corp raised its stake in shares of Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock worth $176,000 after buying an additional 25 shares during the period. SJS Investment Consulting Inc. raised its stake in Carvana by 28.3% during the 3rd quarter. SJS Investment Consulting Inc. now owns 136 shares of the company’s stock worth $51,000 after acquiring an additional 30 shares during the period. MAI Capital Management lifted its holdings in Carvana by 1.8% during the second quarter. MAI Capital Management now owns 1,757 shares of the company’s stock valued at $592,000 after purchasing an additional 31 shares in the last quarter. MassMutual Private Wealth & Trust FSB boosted its position in shares of Carvana by 23.1% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 165 shares of the company’s stock worth $62,000 after purchasing an additional 31 shares during the period. Finally, Finivi Inc. boosted its position in shares of Carvana by 4.6% in the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock worth $295,000 after purchasing an additional 31 shares during the period. Institutional investors own 56.71% of the company’s stock.

Carvana Trading Up 1.1%

The stock has a market capitalization of $73.17 billion, a PE ratio of 41.83 and a beta of 3.57. The stock’s 50 day moving average price is $423.03 and its 200-day moving average price is $381.59. The company has a quick ratio of 2.55, a current ratio of 4.31 and a debt-to-equity ratio of 1.15.

Carvana (NYSE:CVNA) last issued its earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $3.12. The company had revenue of $5.60 billion for the quarter, compared to the consensus estimate of $5.24 billion. Carvana had a return on equity of 50.96% and a net margin of 6.92%.The firm’s quarterly revenue was up 58.0% on a year-over-year basis. During the same quarter last year, the company earned $0.56 EPS. On average, sell-side analysts expect that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Carvana Company Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.