Equity Management

Traders Buy High Volume of Carvana Call Options (NYSE:CVNA)

Carvana Co. (NYSE:CVNA - Get Rating) was the recipient of some unusual options trading activity on Wednesday. Investors acquired 87,552 call options on the company. This is an increase of 26% compared…

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Feb 4, 2023 • 5 min read

Carvana Co. (NYSE:CVNA - Get Rating) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 87,552 call options on the stock. This is an increase of 26% compared to the typical volume of 69,628 call options.

Carvana Trading Up 24.0 %

Shares of Carvana stock traded up $1.06 during midday trading on Wednesday, reaching $5.48. The company had a trading volume of 1,378,667 shares, compared to its average volume of 9,817,683. The stock has a fifty day moving average price of $6.59 and a 200 day moving average price of $20.78. The company has a debt-to-equity ratio of 17.69, a current ratio of 2.38 and a quick ratio of 1.01. The firm has a market cap of $1.03 billion, a PE ratio of -0.63 and a beta of 2.41. Carvana has a fifty-two week low of $3.55 and a fifty-two week high of $193.23.

Carvana (NYSE:CVNA - Get Rating) last issued its quarterly earnings results on Thursday, November 3rd. The company reported ($2.67) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.02) by ($0.65). Carvana had a negative net margin of 5.99% and a negative return on equity of 191.74%. The business had revenue of $3.39 billion during the quarter, compared to analyst estimates of $3.64 billion. On average, equities analysts anticipate that Carvana will post -9.88 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on CVNA shares. Bank of America downgraded Carvana from a "buy" rating to a "neutral" rating in a report on Wednesday, November 30th. Wedbush reissued a "sell" rating and set a $1.00 target price on shares of Carvana in a report on Wednesday, December 28th. Jefferies Financial Group dropped their target price on Carvana from $10.00 to $5.00 in a report on Friday, December 9th. Argus downgraded Carvana from a "hold" rating to a "sell" rating in a report on Monday, November 21st. Finally, Oppenheimer downgraded Carvana from an "outperform" rating to a "market perform" rating in a report on Tuesday, November 15th. Two investment analysts have rated the stock with a sell rating, twenty have assigned a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, Carvana presently has a consensus rating of "Hold" and a consensus target price of $43.65.

Insider Activity at Carvana

In other news, insider Thomas Taira bought 10,000 shares of the firm's stock in a transaction that occurred on Friday, November 11th. The stock was acquired at an average cost of $11.13 per share, with a total value of $111,300.00. Following the completion of the purchase, the insider now owns 42,518 shares of the company's stock, valued at $473,225.34. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other Carvana news, insider Thomas Taira purchased 10,000 shares of the business's stock in a transaction on Friday, November 11th. The stock was acquired at an average price of $11.13 per share, with a total value of $111,300.00. Following the acquisition, the insider now directly owns 42,518 shares of the company's stock, valued at approximately $473,225.34. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gregory B. Sullivan purchased 8,000 shares of the business's stock in a transaction on Monday, November 14th. The shares were acquired at an average cost of $10.00 per share, with a total value of $80,000.00. Following the acquisition, the director now directly owns 17,392 shares in the company, valued at $173,920. The disclosure for this purchase can be found here. Over the last three months, insiders bought 251,000 shares of company stock valued at $2,065,760. 17.67% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Carvana

Several institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD lifted its stake in Carvana by 49.7% in the second quarter. Price T Rowe Associates Inc. MD now owns 20,100,843 shares of the company's stock valued at $453,877,000 after buying an additional 6,670,993 shares during the period. Baillie Gifford & Co. lifted its stake in Carvana by 29.7% in the third quarter. Baillie Gifford & Co. now owns 14,144,058 shares of the company's stock valued at $287,125,000 after buying an additional 3,242,429 shares during the period. Vanguard Group Inc. raised its position in shares of Carvana by 46.8% during the first quarter. Vanguard Group Inc. now owns 7,297,426 shares of the company's stock worth $870,511,000 after purchasing an additional 2,325,545 shares during the period. CAS Investment Partners LLC raised its position in shares of Carvana by 1.5% during the third quarter. CAS Investment Partners LLC now owns 6,827,803 shares of the company's stock worth $138,604,000 after purchasing an additional 100,000 shares during the period. Finally, Spruce House Investment Management LLC raised its position in shares of Carvana by 6.5% during the third quarter. Spruce House Investment Management LLC now owns 6,550,000 shares of the company's stock worth $132,965,000 after purchasing an additional 400,000 shares during the period. 63.62% of the stock is owned by institutional investors and hedge funds.

Carvana Company Profile

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.