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

Carvana Co. (NYSE:CVNA) gapped down prior to trading on Thursday after BTIG Research lowered their price target on the stock from $97.00 to $87.00. The stock had previously closed at $66.32, but opened at $58.95. BTIG Research currently has a buy rating on the stock. Carvana shares last traded at $59.7170, with a volume of 7,622,714 shares changing hands.

Several other equities analysts have also issued reports on CVNA. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $107.40 target price on shares of Carvana in a research report on Thursday, April 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Carvana in a research note on Thursday, June 18th. Royal Bank Of Canada restated an “outperform” rating and set a $92.00 price objective on shares of Carvana in a report on Friday, June 12th. Jefferies Financial Group lowered their target price on shares of Carvana from $95.00 to $90.00 and set a “buy” rating for the company in a research note on Tuesday, July 14th. Finally, Robert W. Baird set a $88.00 target price on shares of Carvana in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $90.69.

Insider Activity

In other news, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $76.99, for a total value of $3,849,600.00. Following the sale, the chief operating officer directly owned 529,810 shares in the company, valued at $40,791,131.52. The trade was a 8.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $67.83, for a total value of $1,017,450.00. Following the transaction, the director directly owned 186,470 shares of the company’s stock, valued at $12,648,260.10. This represents a 7.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 396,962 shares of company stock worth $28,525,088. 15.19% of the stock is currently owned by insiders.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record Q2 2026 revenue of approximately $7.38 billion, up 52.4% year over year, while EPS of $0.42 exceeded the $0.38 consensus estimate. Net income reached $513 million and adjusted EBITDA rose to a record $769 million, extending the company’s growth and profitability streak to 10 consecutive quarters. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Management forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in earnings during the second half of the year. The guidance signals continued strong profitability and operating momentum. Carvana posts record quarterly profits
• Positive Sentiment: Needham reaffirmed its “buy” rating and assigned a $120 price target, while BTIG Research maintained a “buy” rating despite lowering its target from $97 to $87. Both targets remain well above the current trading level, supporting the bullish long-term view. Analyst rating and price target updates
• Neutral Sentiment: The earnings release showed strong sales and profit growth, but EPS was below the prior-year $1.51 figure, making the sustainability of Carvana’s sharply improved results an important issue for investors.
• Negative Sentiment: The stock selloff reflects Wall Street’s disappointment with the full-year outlook. Although Carvana delivered a quarterly beat on revenue and EPS, the guidance was viewed as insufficient or below expectations, leaving investors concerned that future earnings growth may slow. Carvana Stock Falls After Earnings

Hedge Funds Weigh In On Carvana

A number of large investors have recently bought and sold shares of CVNA. Sands Capital Management LLC raised its holdings in shares of Carvana by 44.4% in the fourth quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock valued at $1,030,798,000 after purchasing an additional 751,019 shares during the last quarter. Capricorn Fund Managers Ltd acquired a new position in Carvana during the first quarter worth $29,866,000. Gavilan Investment Partners LLC boosted its holdings in Carvana by 24.6% during the fourth quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company’s stock worth $36,294,000 after purchasing an additional 17,000 shares during the last quarter. Hsbc Holdings PLC grew its position in Carvana by 239.6% in the fourth quarter. Hsbc Holdings PLC now owns 221,727 shares of the company’s stock valued at $93,748,000 after purchasing an additional 156,430 shares in the last quarter. Finally, Swiss National Bank grew its position in Carvana by 9.9% in the first quarter. Swiss National Bank now owns 395,180 shares of the company’s stock valued at $124,237,000 after purchasing an additional 35,720 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Stock Down 10.0%

The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The firm’s 50 day simple moving average is $67.03 and its 200-day simple moving average is $71.05. The stock has a market capitalization of $65.44 billion, a price-to-earnings ratio of 36.29, a price-to-earnings-growth ratio of 14.83 and a beta of 3.46.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.04. The company had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The company’s quarterly revenue was up 52.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.51 EPS. Equities analysts expect that Carvana Co. will post 1.63 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.