Market Analysts see Carvana Co. [CVNA] falling to $5. Time to buy?

Carvana Co. [NYSE: CVNA] loss -12.58% or -1.01 points to close at $7.02 with a heavy trading volume of 67538261 shares. The company report on January 12, 2023 that Carvana, Jimmie Johnson Rev Up Racing Season With The Carvana Racing Sweepstakes, Unveil New Legacy Motor Club Paint Scheme.


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Win A Chance to Be In Jimmie Johnson’s Pit Crew at the Biggest Event of the Racing Season.

Carvana, the industry pioneer for buying and selling used cars online, announced a new nationwide sweepstakes today, offering the VIP treatment with seven-time NASCAR champion Jimmie Johnson as he returns to Daytona Beach, Florida for one of the biggest races of the year. The most decorated racer of all time couldn’t stay away from one of the sport’s most prestigious events for too long, and now Carvana and Johnson have teamed up to give one lucky Carvana Racing fan the experience of a lifetime at this year’s big event. Also debuting today is Johnson’s brand new paint scheme, championing No. 84 as a detailed homage to his storied racing career, now under the newly minted Legacy Motor Club banner.

It opened the trading session at $7.42, the shares rose to $8.44 and dropped to $6.49, the range by which the price of stock traded the whole day. The daily chart for CVNA points out that the company has recorded -66.96% loss over the past six months. However, it is still -97.75% lower than its most recent low trading price.

If we look at the average trading volume of 22.31M shares, CVNA reached to a volume of 67538261 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Carvana Co. [CVNA]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CVNA shares is $12.03 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CVNA stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Truist have made an estimate for Carvana Co. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on December 21, 2022. While these analysts kept the previous recommendation, Citigroup raised their target price to Neutral. The new note on the price target was released on December 13, 2022, representing the official price target for Carvana Co. stock.

The Average True Range (ATR) for Carvana Co. is set at 1.00, with the Price to Sales ratio for CVNA stock in the period of the last 12 months amounting to 0.10. The Price to Book ratio for the last quarter was 2.71, with the Price to Cash per share for the same quarter was set at 3.71.

Trading performance analysis for CVNA stock

Carvana Co. [CVNA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 59.18. With this latest performance, CVNA shares gained by 45.34% in over the last four-week period, additionally sinking by -66.96% over the last 6 months – not to mention a drop of -96.05% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CVNA stock in for the last two-week period is set at 57.70, with the RSI for the last a single of trading hit 65.45, and the three-weeks RSI is set at 50.62 for Carvana Co. [CVNA]. The present Moving Average for the last 50 days of trading for this stock 6.66, while it was recorded at 5.88 for the last single week of trading, and 31.54 for the last 200 days.

Carvana Co. [CVNA]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Carvana Co. [CVNA] shares currently have an operating margin of -0.81 and a Gross Margin at +14.25. Carvana Co.’s Net Margin is presently recorded at -1.05.

Return on Equity for this stock declined to -38.93, with Return on Assets sitting at -2.69.

Carvana Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 2.40.

An analysis of insider ownership at Carvana Co. [CVNA]

There are presently around $885 million, in the hands of institutional investors. The top three institutional holders of CVNA stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 19,613,733, which is approximately -2.423% of the company’s market cap and around 1.50% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 14,144,058 shares of the stock with an approximate value of $99.29 million in CVNA stocks shares; and FMR LLC, currently with $64.85 million in CVNA stock with ownership of nearly 63.227% of the company’s market capitalization.

124 institutional holders increased their position in Carvana Co. [NYSE:CVNA] by around 22,340,680 shares. Additionally, 170 investors decreased positions by around 19,070,998 shares, while 46 investors held positions by with 84,617,900 shares. The mentioned changes placed institutional holdings at 126,029,578 shares, according to the latest SEC report filing. CVNA stock had 39 new institutional investments in for a total of 1,729,319 shares, while 68 institutional investors sold positions of 5,288,580 shares during the same period.

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