What Can We Learn From Carvana Co. (CVNA)’s Valuation Ratios?

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Carvana Co. (NYSE:CVNA) finished Thursday with a subtraction of -$3.69 to close at $26.97, a downside of -12.04 percent. An average of 7,819,240 shares of common stock have been traded in the last five days. There was a fall of -$10.05 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 7,490,390 shares traded, while the 50-day average volume stands at 9,888,942.

CVNA stock has decreased by -22.28% in the last month. The company shares reached their 1-month lowest point of $26.85 on 09/22/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $19.45 and a high of $328.97 in 52 weeks. It has reached a new high 2 times so far this year and lost -88.36% or -$204.82 in price. In spite of this, the price is down -91.80% from the 52-week high.


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Insider Transactions

206 days have passed since Carvana Co. (CVNA) last reported insider trading activity. Palmer Stephen R, who is Vice President of Accounting, most recently acquired $1,000 shares at $148.73 per share on Mar 01. In this transaction, the insider spent $148,730. Vice President of Accounting, Palmer Stephen R, disposed of 9 shares at a price of $164.78 on Feb 01. The insider now owns more than $1,483 worth of shares. Prior to that, Chief Product Officer GILL DANIEL J. went on to Sale 10 shares at $164.78 each on Feb 01. An amount of $1,648 was transacted.

Valuation Metrics

Carvana Co. (CVNA) stock’s beta is 2.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.39, the price-to-book (PB) ratio at 5.08.

Financial Health

The quick ratio of Carvana Co. for the three months ended June 29 was 1.10, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 12.25 and a total debt to equity ratio of 14.72 for the quarter ending June 29. Its gross profit as reported stood at $1.93 billion compared to revenue of $12.81 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Carvana Co.’s return on assets was -8.10%.

Earnings Surprise

For the three-month period that ended June 29, Carvana Co. had $401.0 million in cash and short-term investments compared to $6.61 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$238.0 million in the quarter, while revenues were grew 109.24%. The analyst consensus anticipated Carvana Co.’s latest quarter earnings to come in at -$1.79 per share, but it turned out to be -$2.35, a -31.30% surprise. For the quarter, EBITDA amounted to -$255.0 million. Shareholders own equity worth $188.7 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Carvana Co. (CVNA) price momentum. RSI 9-day as of the close on 22 September was 30.46%, suggesting the stock is Neutral, with historical volatility in this time frame at 134.17%.

As of today, CVNA’s price is $30.99 -27.15% or -$10.05 from its 5-day moving average. CVNA is currently trading -25.27% lower than its 20-day SMA and -53.47% lower than its 100-day SMA. However, the stock’s current price level is +28.61% above the SMA50 and -89.75% below the SMA200.

The stochastic %K and %D were 5.05% and 13.13%, respectively, and the average true range (ATR) was 3.58. With the 14-day stochastic at 0.77% and the average true range at 3.79, the RSI (14) stands at 36.89%. The stock has reached -4.59 on the 9-day MACD Oscillator while the 14-day reading was at -4.33.

Analyst Ratings

Piper Sandler upgraded Carvana Co. (NYSE: CVNA) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Carvana Co. (CVNA) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell CVNA, while 15 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 10 others rate it as a “buy”.

What is CVNA’s price target for the next 12 months?

Analysts predict a range of price targets between $15.00 and $100.00, with a median target of $50.00. Taking a look at these predictions, the average price target given by analysts for Carvana Co. (CVNA) stock is $56.35.

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