Ernest C. Garcia II, a significant shareholder of Carvana Co. (NYSE:CVNA), recently sold a substantial portion of the company's Class A common stock. According to the latest SEC filing, Garcia sold shares worth approximately $38.38 million over two days, October 17 and 18, 2024.
The transactions were executed at weighted average prices ranging from $189.30 to $196.07 per share. These sales were conducted under a pre-established Rule 10b5-1 trading plan, which Garcia adopted in March 2024.
Following these transactions, Garcia's direct ownership of Carvana's Class A common stock has been adjusted accordingly.
In other recent news, Carvana has made significant strides in its operations and financial performance. The company has reached a milestone of four million online vehicle transactions since its inception and has seen a projected increase in third-quarter unit sales to 107.8 thousand units, marking a 33% year-over-year increase according to Citi's research. Carvana's management has projected a year-over-year growth rate of over 25% for third-quarter unit sales and EBITDA for 2024 between $1 billion and $1.2 billion, surpassing the consensus estimate of $890 million.
Analysts have also updated their outlooks on Carvana. BofA Securities raised the price target to $210 from the previous $185 while maintaining a Buy rating, reflecting confidence in Carvana's strategy and market position. Stephens reaffirmed its Overweight rating on Carvana, maintaining a price target of $190. However, Citi maintains a neutral stance on Carvana despite the positive adjustments.
These recent developments highlight the ongoing financial assessments and expectations surrounding Carvana. It's important to note that these are the latest updates and they provide insights into the company's current performance and future prospects, as seen through the lens of various analysts.
InvestingPro Insights
As Ernest C. Garcia II reduces his stake in Carvana Co. (NYSE:CVNA), investors might be curious about the company's current financial health and market position. According to InvestingPro data, Carvana's market capitalization stands at $40.41 billion, reflecting its significant presence in the online used car retail space.
Despite the recent insider selling, Carvana's stock has shown remarkable performance. InvestingPro Tips highlight that the company has delivered a strong return over the last three months, with price data showing a 47.09% total return over this period. Even more impressive is the 515.74% return over the past year, indicating substantial investor confidence in the company's prospects.
However, potential investors should note that Carvana is trading at a high Price / Book multiple of 76.99, suggesting the stock may be richly valued compared to its book value. This aligns with another InvestingPro Tip indicating that the stock is trading near its 52-week high, with the current price at 97.52% of its highest point over the past year.
For those considering Carvana's financial stability, it's worth noting that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, according to InvestingPro Tips. This could provide some reassurance amidst the volatility often associated with high-growth stocks in the e-commerce sector.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 18 more tips for Carvana, providing a deeper understanding of the company's financial position and market dynamics.
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