Stock Traders Buy Large Volume of Call Options on Carvana (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) was the recipient of unusually large options trading activity on Monday. Traders bought 113,933 call options on the stock. This is an increase of 41% compared to the average volume of 80,752 call options.

Carvana Stock Performance

Shares of Carvana stock opened at $324.89 on Wednesday. Carvana has a 1 year low of $148.25 and a 1 year high of $486.89. The firm’s 50-day moving average is $417.93 and its 200 day moving average is $381.60. The stock has a market cap of $70.68 billion, a price-to-earnings ratio of 40.41 and a beta of 3.57. The company has a debt-to-equity ratio of 1.15, a current ratio of 4.31 and a quick ratio of 2.73.

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

Analysts Set New Price Targets

Several research firms have recently issued reports on CVNA. Gordon Haskett reduced their target price on Carvana from $435.00 to $350.00 and set a “hold” rating on the stock in a research note on Friday, February 20th. Wells Fargo & Company dropped their target price on shares of Carvana from $525.00 to $425.00 and set an “overweight” rating for the company in a research report on Thursday, February 19th. JPMorgan Chase & Co. cut their target price on shares of Carvana from $510.00 to $490.00 and set an “overweight” rating on the stock in a research note on Thursday, February 19th. Bank of America decreased their price target on shares of Carvana from $460.00 to $400.00 and set a “buy” rating for the company in a research note on Thursday, February 19th. Finally, Argus started coverage on Carvana in a report on Monday, December 15th. They set a “buy” rating and a $500.00 target price on the stock. Twenty investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Carvana currently has a consensus rating of “Moderate Buy” and a consensus price target of $440.59.

Insider Transactions at Carvana

In other Carvana news, CFO Mark W. Jenkins sold 12,750 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $410.19, for a total value of $5,229,922.50. Following the transaction, the chief financial officer owned 202,817 shares in the company, valued at approximately $83,193,505.23. The trade was a 5.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Stephen R. Palmer sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $393.04, for a total value of $393,040.00. Following the transaction, the vice president directly owned 37,192 shares of the company’s stock, valued at $14,617,943.68. The trade was a 2.62% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 410,351 shares of company stock worth $176,089,049. Corporate insiders own 16.36% of the company’s stock.

Institutional Trading of Carvana

Several institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD raised its holdings in shares of Carvana by 8.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after purchasing an additional 1,407,762 shares during the last quarter. Vanguard Group Inc. grew its position in Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp raised its stake in Carvana by 93.7% during the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after buying an additional 2,764,759 shares during the last quarter. Capital Research Global Investors lifted its holdings in shares of Carvana by 42.9% during the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after buying an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock worth $1,632,763,000 after buying an additional 1,382,852 shares during the last quarter. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Q4 2025 results showed a large beat: Carvana reported $4.22 EPS vs. $1.10 expected and revenue of $5.6B (up 58% y/y), signaling materially improved profitability and margin expansion — a fundamental reason for investor interest. Read More.
• Positive Sentiment: Unusual options activity: heavy buying of calls (about 113,933 contracts, ~41% above typical volume) suggests some traders are placing bullish bets on near‑term upside. (Options flow reported 2/23)
• Neutral Sentiment: Major firms trimmed targets but kept Buy ratings: UBS and Jefferies cut price targets to $485 (from higher levels) while retaining Buy ratings — shows confidence in long‑term thesis but reflects more conservative near‑term expectations after the quarter. Read More. Read More.
• Neutral Sentiment: Earnings‑reaction coverage notes the disconnect: outlets highlight that profits “roared higher” but the stock is “sputtering,” indicating market focus on guidance, margins or valuation despite the beat. Read More.
• Neutral Sentiment: Full earnings call transcript and IR materials are available for investors evaluating management commentary on outlook, unit economics and capital allocation. Read More.
• Negative Sentiment: Legal risk: Pomerantz LLP announced an investigation into Carvana investor claims — potential for securities litigation or related costs that could pressure the stock. Read More.
• Negative Sentiment: Analyst downside: Gordon Haskett cut its target to $350, a more bearish revision that increases near‑term valuation risk and may weigh on sentiment. Read More.

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.