Bank of America Cuts Carvana (NYSE:CVNA) Price Target to $400.00

Carvana (NYSE:CVNA) had its price objective reduced by Bank of America from $460.00 to $400.00 in a research note published on Thursday morning,Benzinga reports. Bank of America currently has a buy rating on the stock.

CVNA has been the subject of several other reports. Needham & Company LLC reaffirmed a “buy” rating and set a $500.00 price objective on shares of Carvana in a research report on Monday, November 17th. DA Davidson set a $360.00 target price on Carvana in a research note on Thursday, October 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Carvana in a research note on Monday, December 29th. Barclays boosted their price objective on shares of Carvana from $465.00 to $530.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 21st. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $460.00 target price on shares of Carvana in a report on Thursday, October 30th. Twenty research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $443.55.

Carvana Stock Up 1.1%

Shares of NYSE:CVNA opened at $336.34 on Thursday. Carvana has a fifty-two week low of $148.25 and a fifty-two week high of $486.89. The firm’s 50 day moving average price is $423.03 and its 200 day moving average price is $381.80. The company has a quick ratio of 2.55, a current ratio of 4.31 and a debt-to-equity ratio of 1.15. The stock has a market cap of $73.17 billion, a price-to-earnings ratio of 41.83 and a beta of 3.57.

Carvana (NYSE:CVNA) last posted its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, topping the consensus estimate of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The company had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.24 billion. During the same quarter in the previous year, the business posted $0.56 EPS. The firm’s revenue was up 58.0% on a year-over-year basis. As a group, equities research analysts predict that Carvana will post 2.85 earnings per share for the current fiscal year.

Insider Buying and Selling at Carvana

In other Carvana news, COO Benjamin E. Huston sold 40,000 shares of the firm’s stock in a transaction 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 directly owned 100,758 shares of the company’s stock, valued at approximately $44,283,141. This trade represents a 28.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Michael E. Maroone sold 30,928 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $400.34, for a total transaction of $12,381,715.52. Following the completion of the sale, the director directly owned 143,573 shares of the company’s stock, valued at $57,478,014.82. The trade was a 17.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 420,351 shares of company stock valued at $179,589,049. 17.12% of the stock is owned by company insiders.

Hedge Funds Weigh In On Carvana

A number of hedge funds and other institutional investors have recently made changes to their positions in CVNA. First Horizon Corp increased its holdings in shares of Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock valued at $176,000 after purchasing an additional 25 shares during the period. SJS Investment Consulting Inc. grew its position in Carvana by 28.3% in the 3rd quarter. SJS Investment Consulting Inc. now owns 136 shares of the company’s stock valued at $51,000 after buying an additional 30 shares during the last quarter. MAI Capital Management increased its stake in Carvana by 1.8% in the 2nd quarter. MAI Capital Management now owns 1,757 shares of the company’s stock valued at $592,000 after buying an additional 31 shares during the period. Gilder Gagnon Howe & Co. LLC increased its stake in Carvana by 1.7% in the 2nd quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company’s stock valued at $622,000 after buying an additional 31 shares during the period. Finally, MassMutual Private Wealth & Trust FSB raised its position in Carvana by 23.1% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 165 shares of the company’s stock worth $62,000 after buying an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Key Headlines Impacting 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

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.