Morgan Stanley has recently raised Carvana Co (CVNA) stock rating, as announced on Today, according to Finviz. Earlier, on September 17, 2024, BofA Securities had resumed the stock to Buy, setting a price target of $185. Evercore ISI also reiterated their previous rating with a price target of $157. Additionally, Stephens initiated Overweight rating on September 12, 2024, with a target price of $190. Wells Fargo analysts, in their report published on August 1, 2024, also raised Overweight rating for Carvana Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Carvana Co (CVNA) Stock Trading Recap
On Tuesday, Carvana Co (CVNA) stock saw a modest uptick, ending the day at $235.68 which represents a slight increase of $9.60 or 4.25% from the prior close of $226.08. The stock opened at $231 and touched a low of $229.07 during the day, reaching a high of $236.36. The volume of shares traded was 2.47 million falling short of the average volume of 3.21 million.
CVNA Stock Performance and Moving Averages
In recent trading, Carvana Co (CVNA) stock price has shown some volatility, fluctuating 12.91% over the last five trades and 31.13% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 102.02%, and it has gained 83.21% in the previous three months. Currently, CVNA is trading at 15.54%, 32.88%, and 98.28% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CVNA, a Consumer Cyclical sector stock, is trading -9.14% below its 52-week high but remains 749.30% above its 52-week low. The Average True Range (ATR) (14 days) of 10.5 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Carvana Co’s Profitability and Valuation Ratios
Carvana Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 5.55% and a profit margin of 0.14%, with a gross margin of 102.02%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Carvana Co’s market capitalization stands at $48.93 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 28057.14, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 88.23. Additionally, the Price-to-Sales Ratio is 3.9, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 48.77, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 10.26% of Carvana Co (CVNA)’s shares, while financial institutions hold 83.60%.
Notable insider trades include BREAUX PAUL W., See Remarks at Carvana Co (CVNA), who sold 30000 shares on Oct 31 ’24, at $240.22 each, totaling $7.21 million. On Nov 01 ’24, GILL DANIEL J., Chief Product Officer, sold 39000 shares for $240.28 each, amounting to $9.37 million. Additionally, on Oct 31 ’24, GILL DANIEL J. sold 6000 shares at $240 each, generating $1.44 million.
