Bank of America Has Lowered Expectations for Carvana (NYSE:CVNA) Stock Price

Carvana (NYSE:CVNA) had its target price cut by stock analysts at Bank of America from $460.00 to $400.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Bank of America‘s price objective indicates a potential upside of 10.51% from the stock’s previous close.

Several other analysts have also recently issued reports on the company. Barclays upped their target price on Carvana from $465.00 to $530.00 and gave the company an “overweight” rating in a report on Wednesday, January 21st. Royal Bank Of Canada reissued an “outperform” rating and issued a $460.00 price objective on shares of Carvana in a report on Thursday, October 30th. JPMorgan Chase & Co. lifted their target price on shares of Carvana from $490.00 to $510.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. Argus initiated coverage on shares of Carvana in a research note on Monday, December 15th. They issued a “buy” rating and a $500.00 price target for the company. Finally, Morgan Stanley restated an “overweight” rating on shares of Carvana in a report on Thursday, January 8th. Nineteen research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $465.41.

Carvana Trading Up 3.1%

Shares of CVNA opened at $361.96 on Thursday. The firm’s fifty day moving average is $428.22 and its two-hundred day moving average is $382.10. The stock has a market cap of $78.74 billion, a PE ratio of 82.64 and a beta of 3.57. The company has a quick ratio of 2.55, a current ratio of 4.05 and a debt-to-equity ratio of 1.63. Carvana has a 52-week low of $148.25 and a 52-week high of $486.89.

Carvana (NYSE:CVNA) last released its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, beating analysts’ consensus estimates of $1.10 by $3.12. The company had revenue of $5.60 billion during the quarter, compared to the consensus estimate of $5.24 billion. Carvana had a net margin of 3.44% and a return on equity of 30.62%. Carvana’s quarterly revenue was up 58.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.56 EPS. Research analysts forecast that Carvana will post 2.85 earnings per share for the current fiscal year.

Insider Transactions at Carvana

In other Carvana news, VP Stephen R. Palmer sold 1,000 shares of the business’s stock in a transaction 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 completion of the transaction, the vice president owned 37,192 shares in the company, valued at $14,617,943.68. The trade was a 2.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Mark W. Jenkins sold 12,750 shares of Carvana stock in a transaction on 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 completion of the transaction, the chief financial officer owned 202,817 shares of the company’s stock, valued at approximately $83,193,505.23. This trade represents a 5.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 420,351 shares of company stock worth $179,589,049. 17.12% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Carvana

Hedge funds and other institutional investors have recently made changes to their positions in the stock. First Horizon Corp lifted its stake in Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock worth $176,000 after acquiring an additional 25 shares during the last quarter. SJS Investment Consulting Inc. raised its holdings in shares of Carvana by 28.3% in the 3rd quarter. SJS Investment Consulting Inc. now owns 136 shares of the company’s stock valued at $51,000 after purchasing an additional 30 shares in the last quarter. MAI Capital Management lifted its position in shares of Carvana by 1.8% during the 2nd quarter. MAI Capital Management now owns 1,757 shares of the company’s stock worth $592,000 after purchasing an additional 31 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its stake in shares of Carvana by 23.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 165 shares of the company’s stock worth $62,000 after purchasing an additional 31 shares in the last quarter. Finally, Finivi Inc. increased its holdings in Carvana by 4.6% in the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock valued at $295,000 after buying an additional 31 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Company beat expectations — Q4 revenue $5.6B (up 58% YoY) and EPS $4.22, handily above Street estimates; management highlighted record unit economics and improved operating profit/cash from operations. Carvana Announces Record Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Street reaction includes multiple buy/overweight ratings and high price targets (median ~ $515), reflecting analyst confidence that improved fundamentals support higher equity value. QuiverQuant: Carvana Q4 results and analyst activity
• Neutral Sentiment: Full earnings disclosure and the call transcript provide detail on margins, inventory and channel dynamics; useful for modeling but not a single clear catalyst. Earnings Call Transcript
• Neutral Sentiment: Press snapshots and analyst notes compare key metrics versus estimates — revenue and gross profit strong, but some per‑unit profitability metrics show mixed trends that require deeper read. Q4 Earnings Snapshot
• Negative Sentiment: Accounting and profitability questions raised on the earnings call and in coverage; lack of clear answers on certain metrics contributed to investor concern. PYMNTS: Accounting scrutiny and profitability concerns
• Negative Sentiment: Regulatory/fraud allegations and an investor class action probe (Pomerantz) surfaced ahead of/around the report, increasing downside risk and headline sensitivity. Pomerantz investor alert
• Negative Sentiment: Heavy insider selling revealed in coverage and institutional flow headlines increase perceived governance/owner alignment risk and amplify volatility. QuiverQuant: insider selling & institutional changes

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.