Carvana (NYSE:CVNA) Trading Down 10.3% on Insider Selling

Carvana Co. (NYSE:CVNA) shares dropped 10.3% on Wednesday after an insider sold shares in the company. The stock traded as low as $347.00 and last traded at $351.2930. Approximately 2,111,048 shares were traded during trading, a decline of 43% from the average daily volume of 3,712,986 shares. The stock had previously closed at $391.69.

Specifically, insider Thomas Taira sold 1,047 shares of the firm’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $398.54, for a total transaction of $417,271.38. Following the sale, the insider directly owned 66,625 shares of the company’s stock, valued at $26,552,727.50. This trade represents a 1.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CVNA. Argus started coverage on shares of Carvana in a research note on Monday, December 15th. They set a “buy” rating and a $500.00 price objective on the stock. Wall Street Zen downgraded Carvana from a “buy” rating to a “hold” rating in a report on Sunday, October 19th. Morgan Stanley reissued an “overweight” rating on shares of Carvana in a research note on Thursday, January 8th. Zacks Research cut Carvana from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 4th. Finally, Gordon Haskett dropped their target price on Carvana from $445.00 to $435.00 and set a “hold” rating for the company in a research note on Monday, January 5th. Nineteen analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $474.27.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Technical buy signal: a “power inflow” trading signal helped spark short-term buying and a small intraday bounce. Carvana Shares Rise 4% Following Key Trading Signal
• Positive Sentiment: Analyst support remains: several firms still rate CVNA a buy and some have high price targets, which provides a floor for buyers despite current volatility.
• Neutral Sentiment: Earnings focus: Carvana is due to report soon; Wall Street estimates and key metric previews mean the upcoming print/guidance — not new by itself — will likely determine the next directional move. Unveiling Carvana Q4 Outlook: Wall Street Estimates
• Neutral Sentiment: Valuation debate: several pieces weigh whether recent declines make CVNA attractive or still risky — useful for longer‑term investors but not an immediate catalyst. Is Carvana Now Attractive After Recent Share Price Declines?
• Negative Sentiment: $1B accounting questions: reports alleging roughly $1 billion in accounting irregularities surfaced and are now a primary driver of selling and heightened scrutiny. $1 Billion Accounting Questions Cloud Carvana’s 44% Sales Surge
• Negative Sentiment: Multiple law‑firm investigations: Pomerantz, Bragar Eagel & Squire and others have opened probes into Carvana, which raises litigation and disclosure risk that typically pressures shares. Pomerantz investigation alert Bragar Eagel & Squire investigation alert
• Negative Sentiment: Insider selling and retail sentiment shift: recent insider sales and a turn toward bearishness on social platforms have amplified selling pressure amid the news cycle. SEC Form 4 – insider sale by Thomas Taira
• Negative Sentiment: Short‑seller/research scrutiny: commentators warn that past related‑party and accounting questions keep downside risk elevated if earnings or disclosures disappoint. Carvana Can’t Stop Falling

Carvana Stock Down 0.2%

The firm has a market capitalization of $74.68 billion, a PE ratio of 78.38, a price-to-earnings-growth ratio of 0.83 and a beta of 3.57. The company has a current ratio of 4.05, a quick ratio of 2.55 and a debt-to-equity ratio of 1.63. The firm has a 50-day moving average of $434.54 and a two-hundred day moving average of $382.03.

Institutional Trading of Carvana

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Carvana in the 4th quarter valued at $29,000. Farmers & Merchants Investments Inc. acquired a new stake in Carvana in the 4th quarter valued at $29,000. ORG Partners LLC raised its position in Carvana by 8,700.0% in the third quarter. ORG Partners LLC now owns 88 shares of the company’s stock valued at $33,000 after purchasing an additional 87 shares during the period. Salomon & Ludwin LLC lifted its stake in shares of Carvana by 112.5% during the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock worth $37,000 after purchasing an additional 45 shares in the last quarter. Finally, Steigerwald Gordon & Koch Inc. purchased a new stake in shares of Carvana in the third quarter worth about $38,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

About Carvana

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.