Stephen R. Palmer, Vice President of Accounting at Carvana (CVNA +0.17%), disposed of 8,023 shares of Class A Common Stock on Sept. 1, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$576,000Shares sold8,023Post-transaction shares (directly held)128,886Post-transaction value$9.3 millionTransaction value based on SEC Form 4 weighted average sale price ($71.79); post-transaction value based on September 01, 2026, market close ($72.18).
Key questionsWhat were the specific components of this share disposition?
The filing detailed two distinct activities: 5,000 shares were sold on the open market, and the company withheld 3,023 shares to cover tax liabilities associated with the vesting of restricted stock units.What is the status of the insider's remaining equity position?
Stephen R. Palmer continues to hold 128,886 shares of Class A Common Stock directly, valued at $9.3 million as of the Sept. 1, 2026, valuation. How does the Rule 10b5-1 plan impact the interpretation of this sale?
The open-market portion of the trade was completed under a Rule 10b5-1 plan adopted on May 28, 2025, which removes the insider's discretion over the timing and execution of the transaction to avoid potential conflicts.What is the context regarding the stock's recent performance?
At the time of the transaction on Sept. 1, 2026, Carvana shares had a one-year total return of -3%. The stock was priced at $74.16 as of the Sept. 2, 2026, market close.Company OverviewMetricValueShare Price (as of market close 2026-09-02)$74.16Market Capitalization$53.3 billionRevenue (TTM)$25.1 billionNet Income (TTM)$2.1 billionCompany SnapshotCarvana operates a digital platform that facilitates the purchase and sale of pre-owned vehicles across the United States, generating revenue through vehicle sales, financing solutions, and complementary products and services.The company employs a vertically integrated business model encompassing vehicle sourcing and reconditioning, online transaction facilitation, consumer financing, and proprietary logistics capabilities for vehicle delivery and pickup.Carvana primarily serves retail consumers seeking to purchase pre-owned vehicles through a digital-first channel, targeting customers who prefer online convenience and transparent pricing in the automotive retail sector.
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Carvana is a significant player in the automotive retail sector, with a market capitalization of $81.7 billion and TTM revenue of $25.1 billion, demonstrating substantial scale in the digital vehicle marketplace.
The company's competitive differentiation derives from its end-to-end digital platform architecture, proprietary logistics network, and integrated financing capabilities, which collectively enable a streamlined customer experience in pre-owned vehicle transactions.
With 23,100 employees and operations across the United States, Carvana has established itself as a transformative force in automotive retail through technology-enabled distribution and customer-centric service delivery.
What this transaction means for investorsThis sale shouldn't concern investors. It was completed under a pre-adopted plan for personal financial management reasons. Moreover, the insider still retains a substantial amount of shares in the company's stock. The sale represented a small percentage of the insider's holdings.
Importantly, Carvana continues to expand rapidly. TTM revenue grew over 52% year over year, while operating margin continues to hold around 9%.
If Carvana can continue expanding margins into the double-digit range over time, the stock could offer upside even at these elevated share prices. It trades at a reasonable enterprise value-to-sales ratio of about 1.8x.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Carvana (CVNA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Carvana currently has an average brokerage recommendation (ABR) of 1.77, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.77 approximates between Strong Buy and Buy.
Of the 24 recommendations that derive the current ABR, 13 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 54.2% and 12.5% of all recommendations.
Brokerage Recommendation Trends for CVNA
Check price target & stock forecast for Carvana here>>>
While the ABR calls for buying Carvana, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CVNA Worth Investing In?Looking at the earnings estimate revisions for Carvana, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.65.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Carvana. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Carvana.
Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced plans to bring Inspection and Reconditioning Center (IRC) capabil
SACRAMENTO, Calif.--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced plans to bring Inspection and Reconditioning Center (IRC) capabilities to its existing ADESA Brasher's wholesale auction site in Rio Linda, Calif. The integration creates additional reconditioning capacity and a new inventory pool in Carvana's national network, supporting greater selection for retail customers nationwide, faster delivery speeds for California car b.
It has been about a month since the last earnings report for Carvana (CVNA - Free Report) . Shares have added about 20.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carvana due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Carvana Co. before we dive into how investors and analysts have reacted as of late.
Carvana Q2 Earnings Match EstimatesCarvana reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing.
Retail Volume Reaches a RecordRetail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052.
Gross Profit Rises, GPU DeclinesTotal gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million.
However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively.
Margins Reflect Growth InvestmentsOperating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed.
Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose.
Carvana Expands Production CapacityInventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location.
The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027.
Cash and LiquidityCash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million.
Full-Year EBITDA OutlookFor the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates revision.
The consensus estimate has shifted 7.89% due to these changes.
VGM ScoresAt this time, Carvana has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Carvana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
shares rose 8.4%, currently trading at $70.44. The stock has experienced a 52-week range of $54.46 to $97.38, demonstrating significant volatility over the past year.
GF Value™ verdict: CVNA is currently trading at a 13.5% discount to its GF Value™ of $81.47.GF Score™ of 73/100 indicates the stock is above average based on various performance metrics.Notable signal: The stock has seen significant insider selling over the past 12 months, with a net selling amounting to $426.6 million.Is CVNA Overvalued or Undervalued?The current market price of Carvana Co
CVNA +8.37% 73
at $70.44 is 13.5% below the GF Value™ estimate of $81.47. This suggests that CVNA is undervalued based on GuruFocus' intrinsic value assessment, which is derived from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is modestly undervalued, presenting a potential opportunity for investors willing to consider the inherent risks that accompany investing in a volatile sector like vehicles and parts.
While CVNA's undervaluation offers a margin of safety, it is essential to exercise caution. The company has faced considerable challenges, as reflected in its year-to-date decline of 16.5%. This could point to underlying operational issues or market sentiment that may not be fully captured by the GF Value™ estimate.
How Does CVNA's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)39.0x69.7xForward P/E41.5xN/AThe current P/E ratio of 39.0x is significantly lower than the 5-year median of 69.7x, indicating that the stock is trading well below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that CVNA is currently undervalued.
What Does CVNA's GF Score™ Tell Us?GF Score™ measures a stock's performance across various dimensions, including financial strength, profitability, growth potential, valuation, and momentum. Carvana's score of 73/100 reflects an above-average performance, with its strongest sub-rank being Valuation at 8/10, indicating it is favorably valued relative to its historical metrics.
MetricRatingGF Score™73Financial Strength7/10Profitability3/10Growth6/10Valuation8/10Momentum7/10Carvana's scores highlight its strengths in valuation and financial strength, while its profitability rank at 3/10 suggests challenges in generating consistent profits. The growth rank of 6/10 indicates a moderate potential for expansion, while the momentum rank of 7/10 reflects a positive recent performance trend.
What Are Gurus and Insiders Doing with CVNA?Currently, 11 gurus hold shares of Carvana, with 4 increasing their positions and 7 reducing their stakes in recent quarters. This mixed activity among gurus suggests varied opinions on the stock's future prospects, but a majority trimming their positions could indicate caution.
Furthermore, insider activity presents a concerning trend, as insiders have sold a net $426.6 million in shares over the past 12 months, despite only $1.5 million in purchases. This substantial net selling could signal a lack of confidence in the company's near-term performance, which potential investors should consider when evaluating the stock.
What This Means for InvestorsBased on the GF Value™ assessment, Carvana Co
CVNA +8.37% 73
appears to be undervalued at its current price of $70.44, presenting a potential investment opportunity. However, with significant insider selling and mixed guru activity, investors should approach with caution and thoroughly assess the risks involved. For more detailed information, you can visit the Carvana Co (CVNA) stock page.
Frequently Asked QuestionsWhat is CVNA's GF Score™?
The GF Score™ for CVNA is 73/100, indicating that the stock performs above average across several key metrics.
Is CVNA overvalued or undervalued?
CVNA is currently undervalued, with a GF Value™ estimate of $81.47 compared to its market price of $70.44.
What is CVNA's P/E ratio?
CVNA's P/E ratio is 39.0x, which is significantly below its 5-year median of 69.7x, indicating that the stock is trading at a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Carvana shares climbed as much as 9.3% Wednesday (Aug. 19), after dropping 14% over the previous two days, when a report said billionaire Mark Walter wouldn't be able to immediately sell his stake in the online car retailer, Bloomberg reported Wednesday.
Carvana shares are headed for a double-digit weekly loss as a federal investigation into billionaire Mark Walter shines a spotlight on his minority stake in the online used-car retailer.
The stock dropped more than 7% on Tuesday, one day after a similar-sized decline on Monday. The shares rebounded modestly Wednesday but remain down about 10% for the week.
The pressure came after The Wall Street Journal reported that federal prosecutors and the Securities and Exchange Commission are investigating Walter and businesses tied to his financial empire over whether financial relationships were concealed while more than $20 billion was routed through insurance companies he controls.
Carvana 5 days
Walter's connection to Carvana is significant. He indirectly controls CVAN Holdings LLC, which owned 8% of the company's Class B common stock as of March 10, according to Carvana's proxy statement.
Insider selling this week could have also contributed to the share price weakness. One Carvana director disclosed the sale of 30,000 shares at prices around $74. The transactions generated roughly $2.1 million in proceeds, according to a regulatory filing, and involved the exercise of stock options that were set to expire in 2027.
Under the radarWalter, the chief executive officer of Guggenheim Partners, the owner of the Los Angeles Dodgers and controlling owner of the LA Lakers, has agreed to sell the basketball franchise for $12.5 billion amid the federal probe. The scrutiny raised questions about what could happen to his Carvana position if fallout from the investigation pressures him to raise cash.
Carvana disclosed in its March proxy that a private consumer products company issued Carvana a warrant in June 2025 to purchase shares of its common stock. Carvana valued the warrant at $1.5 million as of the end of 2025, with tranches vesting through 2029 based on performance goals. The company said Walter "has a substantial ownership interest in the warrant issuer."
Investor and SubStack writer Herb Greenberg said that relationship had attracted little attention before the investigation thrust Walter's financial dealings into the spotlight.
"That's been out there and because it's already been disclosed, it fell under the radar oddly and nobody paid attention," Greenberg said. "What happens when he has to sell and who's going to buy it? Historically Carvana has always found a way to get out of these kind of jams."
Carvana has faced several controversies over the years, including short seller accusations and regulatory penalties.
Officials at Tempe, Arizona-based Carvana weren't immediately available for comment.
Shares of Carvana (NYSE:CVNA | CVNA Price Prediction) are down 7% to $65.50 Tuesday morning, extending a slide that has left Carvana stock lower for 2026 even as the used-vehicle disruptor just posted its best quarter on record. The move puts the year-to-date figure squarely at odds with the operating story.
Through Monday’s close, Carvana stock was down 17% year to date (YTD). CarMax stock, meanwhile, was up 51% over the same stretch. That inversion is the headline, and it puts pressure on the original thesis that Carvana’s online-first model was uniquely defensible against traditional dealers.
Record Quarter, Falling Stock Carvana’s Q2 2026 report on July 29 delivered all-time records. Total revenue reached $7.4 billion, up 52% versus Q2 2025, net income was $513 million, up 66.6%, and retail units sold hit 197,325, up 38%.
Carvana’s gross profit per unit was $7,014, down 5.4%, the one operating metric moving the wrong way. Online used-vehicle inventory at Carvana reached roughly 77,000 as of June 30, up from 75,000 at year-end 2025 and 53,000 a year earlier.
CEO Ernie Garcia III flagged inventory as a drag on the July 29 call, stating “Inventory has undergrown sales over the last several months, and that certainly creates a headwind to just the overall business. The team’s got a great plan, and we’re confident they’ll catch up and hopefully surpass it in the not-too-distant future.” The comment framed inventory build as a near-term margin headwind rather than a demand problem.
Garcia frames Carvana’s growth as a virtuous circle where more inventory drives more sales, sales make marketing more efficient, and demand pulls in more inventory. The company is also integrating ADESA, acquired in 2022, across 56 U.S. locations, with a stated goal of selling 3 million used cars annually within five to 10 years.
The Bear Debate Retail investor debate on Stocktwits has moved past the quarterly beat at Carvana. Community threads flag skepticism about the business model, concerns over aggressive accounting, elevated institutional short interest, and recent reports of federal scrutiny of related-party transactions.
None of those concerns are established fact against Carvana, and the company holds 2% of the U.S. used retail vehicle market with capacity for 1.5 million annual retail units and real estate to scale to 3 million. Yet the friction between short holders and long holders has widened, and Carvana stock reflects that unease more than the record quarter.
Peers Sit Flat as CarMax Runs CarMax (NYSE:KMX) stock is down 0.4% to $58.29 Tuesday, with CarMax shares up 51% year to date through Monday’s close. The company runs more than 255 stores, with digital capabilities supporting 84% of retail unit sales, and CarMax Auto Finance originated $8 billion in loans in fiscal 2026 against a $16 billion portfolio.
Meanwhile, Lithia Motors (NYSE:LAD) stock is down 0.4% to $367.91, with Lithia shares up 12% year to date through Monday. The company operates the largest global automotive retail footprint, including Driveway.com, GreenCars.com, and Driveway Finance Corporation across the U.S., U.K. and Canada.
Also, AutoNation (NYSE:AN) stock is down 0.8% to $203.43, with AutoNation shares down 0.7% year to date through Monday. The company runs franchised dealerships nationwide, and AutoNation Finance carries a portfolio exceeding $2.7 billion.
The read is straightforward. The incumbents have built their own digital storefronts and captive-finance arms, which weakens the argument that Carvana’s online model is uniquely defensible. CarMax’s large 2026 gain against Carvana’s decline is the clearest expression of that shift.
The Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) shares are down 2% year to date through Monday’s close. The fund holds Carvana among many constituents, so it offers a loose read on used-vehicle retail, with concentration in a small number of large consumer names and no leverage.
What to Watch Investors could look for signs that Carvana’s inventory growth catches up to sales in coming quarters. Any formal disclosure tied to the reported scrutiny of related-party transactions could reframe the bear case at Carvana.
Carvana’s gross profit per unit is the other line to track, since it was the sole operating metric moving the wrong way last quarter. Stabilization there would blunt one of the loudest points in the short thesis.
On the peer side, CarMax’s late-fall Strategic Update under new CEO Keith Barr is the next major catalyst for the incumbents. A credible turnaround plan could sustain the KMX rerating and keep pressure on the argument that Carvana’s model is uniquely defensible.
Contact [email protected] for any questions or corrections.
The S&P 500 (^GSPC -0.52%) fell 0.50% to 7,747, the Nasdaq Composite (^IXIC -0.32%) slipped 0.31% to 26,647, and the Dow Jones Industrial Average (^DJI -0.51%) lost 0.51% to 53,460 as indices drifted near record levels ahead of pivotal retail corporate earnings reports.
Gold prices rose 0.80% to $4,472.90 as of U.S. market close, and the 10-Year Treasury yield climbed 0.05% to 4.68% while Industrials led sector gainers, Communication Services finished as the primary laggard, and Utilities also fell.
Today's biggest movesSpace Exploration Technologies (SPCX +4.45%) shares rebounded 4.5% on new positive notes from analysts, while Carvana (CVNA -7.28%) was today's biggest loser on the S&P 500, dropping 7.3%.
Sandisk (SNDK +8.88%) gained 9% as memory chipmakers showed strength, though Meta Platforms (META -3.54%) faced selling pressure amid broader communications sector weakness.
What this means for investorsIt was a largely unspectacular day for the market, as investors mostly seemed curious to see how earnings from retailers like Walmart (WMT -0.81%), Home Depot (HD -0.29%), and Target (TGT -2.25%) will turn out this week. In this sense, it seemed like a "risk-off" day as the market took a wait-and-see approach on further buying.
The U.S. 30-year Treasury yield hit 5.3% -- its highest mark since 2007 -- highlighting this cautious stance. As bond yields rise alongside the potential for rising interest rates from the Fed, it will be interesting to see how growth stocks fare -- especially those tied to the AI realm.
Really, there was no single major event that caused the market to dip today. With U.S. markets still near an all-time high, today's breather is nothing to panic over one way or the other.
Josh Kohn-Lindquist has positions in Space Exploration Technologies. The Motley Fool has positions in and recommends Home Depot, Meta Platforms, Target, and Walmart. The Motley Fool has a disclosure policy.
Po rekordech z minulého týdne začíná ten nový v opatrnostním módu. I nadále investoři ostře sledují napjatou situaci na Blízkém Východě, rostoucí ceny ropy a tento týden je to především zápis z červencového zasedání FED. Očekávaný růst sazeb se postupně zaceňuje do cen dluhopisů. Pokračuje výsledková sezóna tento týden zaměřená na maloobchodní giganty.
Index Dow Jones -0,51 % na 53459,78 b.
S&P 500 -0,52 % na 7745,06 b.
Nasdaq Composite -0,32 % na 26644,91 b.
Index S&P 500 -0,52 % na 7745,06 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +0,9 % Komunikační služby -1,5 % Informační technologie -0,2 % Nezbytná spotřeba -1,5 % Průmysl -0,2 % Finanční sektor -1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +8,9 % Carvana (CVNA) -7,3 % Coherent Corp (COHR) +7,8 % Charter Communications (CHTR) -6,6 % Comfort Systems USA (FIX) +6,0 % Constellation Brands (STZ) -6,2 % Teradyne (TER) +5,8 % Align Technology (ALGN) -5,6 % Applied Materials (AMAT) +5,6 % Trade Desk (TTD) -5,2 %
Martin Varecha
Fio banka, a.s.
Prohlášení
Carvana Co. (CVNA) J.P. Morgan Automotive Conference August 12, 2026 10:10 AM EDT
Company Participants
Mark Jenkins - Chief Financial Officer
Conference Call Participants
Rajat Gupta - JPMorgan Chase & Co, Research Division
Presentation
Rajat Gupta
JPMorgan Chase & Co, Research Division
Great. Thanks, everyone. My name is Rajat Gupta, member of the Automotive Equity Research team. Very pleased to have with us CFO of Carvana, Mark Jenkins. And thanks, Mark, for being here.
Mark Jenkins
Chief Financial Officer
Yes. It's great to be here. I think Rajat mentioned that it's our sixth consecutive year at the conference. So always great to be here and happy to be speaking with you all. Okay. So I thought today, I would start with just a few slides about what's happening in the business today. Where are we from a growth perspective? And what are some of the key drivers of that growth? It will be a relatively short discussion, then we'll hand it over to Rajat for Q&A. So we have -- and that's the typical safe harbor on the first slide.
Okay. So we're having a very strong growth year so far. I think there's a few different ways to look at our growth performance and I think I can start just by comparing our growth within our industry. So we're now at the scale where we're selling around 800,000 used vehicles per year, just under that run rate in Q2, and we're growing at 38% year-over-year. So that's very significant growth at very significant scale within our industry. And moreover, we achieved that growth in Q2 of 38% retail units sold growth year-over-year in an industry that was down low to mid-single digits year-over-year.
So we're really making very significant share gains. We have a model that's built to scale, and
PHOENIX--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the leading e-commerce platform for buying and selling cars, today announced the successful upsize and pricing of a Senior Secured Term Loan B Facility in an aggregate principal amount of $1.66 billion (the “Term Loan B”). The company intends to use proceeds from the Term Loan B, together with cash on hand, to redeem in full the Company's 9.00% Senior Secured Notes due 2030. Over the past 10 quarters, Carvana has generated industry-leading growth.
Key Takeaways Carvana's retail units jumped 38% in Q2 2026, while it targets 3 million annual vehicle sales by 2030-2035.CVNA's adjusted EBITDA rose to $769M, but margin fell to 10.4% and gross profit per unit declined.Carvana's liquidity reached $7B, while inventory gaps, scaling demands and debt remain key risks. Carvana Co. (CVNA - Free Report) is scaling quickly, with higher retail volumes, rising adjusted EBITDA and improving cash generation supporting its long-term growth case. The company is also expanding production capacity through ADESA as it targets a much larger share of the used-vehicle market.
The trade-off is valuation. CVNA already reflects substantial growth expectations, while inventory constraints, execution demands and sizable debt leave little room for operational missteps.
Carvana’s Growth Case Remains PowerfulRetail units sold rose 38% year over year in the second quarter of 2026 to a record 197,325, nearly double the level two years earlier. Carvana estimates that it holds only about 2% of used-vehicle retail and continues to target 3 million annual vehicle sales between 2030 and 2035.
ADESA is central to that expansion. Carvana integrated retail production at three more ADESA locations in the quarter, bringing the total to 19. Its current footprint offers fully built-out annual capacity for about 1.5 million retail units and real estate capacity for 3 million units.
Carvana's closest peers include CarMax, Inc. (KMX - Free Report) — the #1 player in the used-vehicle space— and Sonic Automotive (SAH - Free Report) , whose EchoPark unit deals exclusively in used vehicles. But Carvana's growth is outpacing both companies by a wide margin. Retail used-vehicle sales volume at Sonic's EchoPark rose 17% year-over-year in the second quarter of 2026, while at CarMax, retail used-vehicle volume was roughly flat year-over-year in the first quarter of fiscal 2027.
CVNA’s Premium Valuation Demands ExecutionCarvana trades at 2.41X forward 12-month sales, above the 0.31X multiple for its Zacks sub-industry and its own five-year median of 1.95X. Its Value Score of F reinforces the valuation challenge.
Image Source: Zacks Investment Research
That premium puts more weight on continued volume growth and margin progress. Adjusted EBITDA rose to $769 million in the second quarter from $601 million a year earlier, but adjusted EBITDA margin contracted to 10.4% from 12.4% as growth investments and higher costs pressured profitability. Unit economics have softened. In the second quarter of 2026, total gross profit per unit fell $412 year over year to $7,014, while non-GAAP GPU declined $455 to $7,125.
Carvana’s Inventory Gap Adds RiskInventory growth has trailed sales growth, which can reduce customer selection and weaken conversion. Carvana is working to rebuild inventory as production expands, but the process depends on reconditioning capacity, staffing, training and logistics execution.
The risk grows with scale. Carvana must integrate more ADESA locations, improve reconditioning efficiency and manage transportation and last-mile delivery while sustaining customer experience. Previous reconditioning challenges show how operational disruptions can slow inventory growth and raise costs.
CVNA’s Balance Sheet Is ImprovingLong-term debt was $4.85 billion at June 30, 2026, compared with $4.83 billion at the end of 2025. Even so, net debt to trailing 12-month adjusted EBITDA fell to 1X, the company’s best level to date.
Liquidity also strengthened. Cash and cash equivalents reached $2.63 billion, while total liquidity resources rose to $7 billion. Net cash provided by operating activities increased to $345 million in the first six months of 2026 from $261 million a year earlier.
Carvana’s Signals Call for PatienceCarvana’s growth trajectory remains attractive, but the stock’s premium valuation means execution must remain consistent. Inventory expansion, production scaling and cost control will be important as the company works toward its long-term volume and margin targets.
The Zacks Consensus Estimate for CVNA’s 2026 EPS calls for a year-over-year contraction of 2.37%. But the consensus mark for 2027 EPS implies a year-over-year increase of 40% from projected 2026 levels. See how the estimates have been revised over the past 60 days.
Image Source: Zacks Investment Research
CVNA currently carries a Zacks Rank #3 (Hold). Its Growth Score of B and Momentum Score of B point to favorable growth and price-trend characteristics, but the Value Score of F is a clear offset. The VGM Score of C also suggests a mixed overall Style Score profile.
The combination supports patience rather than an aggressive entry. Carvana has meaningful runway and improving financial capacity, but investors may want to see continued execution and better alignment between growth and valuation before taking a more constructive view.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Investors choosing between Booking (BKNG +6.66%) and Carvana (CVNA +1.68%) are weighing a dominant travel powerhouse against a high-growth disruptor in the automotive market. This choice comes at a time when consumer spending habits are shifting toward digital-first service experiences.
Booking operates as a global intermediary for travel services, while Carvana digitizes the used-car buying and selling experience. Both companies rely on discretionary spending but occupy very different niches in the retail and service landscapes, offering unique profiles of stability and expansion.
The case for BookingBooking Holdings operates a massive portfolio of travel brands including Booking.com, Agoda, KAYAK, and OpenTable across the travel and tourism stocks space. The company maintains non-exclusive agreements with various hotels, airlines, and rental car companies, partnering with platforms like Alphabet for traffic acquisition. In June 2026, the company established a new partnership with The Trade Desk to leverage its proprietary travel data for more effective advertising campaigns.
In FY 2025, revenue reached nearly $26.9 billion, representing growth of roughly 13.4% compared to the previous year. The company reported a net income of close to $5.4 billion for the same period. This resulted in a net margin of approximately 20.1%, which measures how much profit a business retains from its total sales after all costs are paid.
As of its December 2025 balance sheet, the current ratio, which measures the ability to pay short-term debts with short-term assets, was nearly 1.3x. Free cash flow for FY 2025 was about $9.1 billion, which is the cash a company generates after accounting for the costs to maintain or expand its physical assets like equipment.
The case for CarvanaCarvana is an online retailer for used vehicles that expanded into new-car sales in 2026 by acquiring multiple dealerships from Stellantis. It serves U.S. customers through a nationwide network of home delivery and local pickup services. The company also holds a strategic warrant to invest in Slate Auto, an electric vehicle startup, as it looks toward the future of the automotive market.
In FY 2025, revenue reached nearly $20.3 billion, representing growth of close to 48.6% from the previous fiscal year. The company reported a net income of approximately $1.4 billion during this time. This performance resulted in a net margin of roughly 6.9% for the period, reflecting its focus on scaling the business volume rapidly.
As of its December 2025 balance sheet, the debt-to-equity ratio was about 1.6x. The current ratio stood at nearly 4.3x, showing a high level of short-term liquidity relative to its immediate debts. Free cash flow for FY 2025 was close to $889.0 million, and investors often watch the P/S ratio to see how the market values this growing revenue stream.
Risk profile comparisonBooking faces intense competition from global technology companies like Alphabet and AI-native platforms that may bypass traditional travel booking sites. It also deals with regulatory risks under the EU Digital Markets Act, where it has been designated as a gatekeeper. Geopolitical volatility and the risk of AI-enabled cyberattacks on its large volume of customer data remain primary concerns for the business.
Carvana faces legal and regulatory exposure regarding its advertising and lending practices, along with litigation over vehicle safety issues. It relies heavily on the automotive finance market, meaning a decline in investor demand for its loan products could hurt its liquidity. The company also faces competition from CarMax and challenges in successfully integrating its newly acquired physical dealership locations.
Valuation comparisonBooking offers a more modest Forward P/E, while Carvana trades at a higher premium relative to future earnings estimates due to its rapid expansion.
Metric Booking Carvana Forward P/E 18.5x 38.5x P/S ratio 5.6x 3.3x Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd go with Booking, although Carvana's comeback story is one of the more impressive in recent memory. Carvana has strung together 10 consecutive quarters of strong growth and profitability, and its operational improvements have been substantial. For investors who followed the turnaround early, the rewards have been enormous.
But at current prices, Carvana is asking investors to pay a premium valuation at a moment when its guidance came in below Wall Street expectations and there are early signs of margin pressure. That is a harder combination to get comfortable with as a new buyer.
Booking, by contrast, is the more attractively priced business right now despite being the steadier, more profitable one. It operates across more than 200 countries, consistently beats earnings estimates, and returns substantial cash to shareholders. Global travel demand is durable, and Booking sits at the center of it.
For a long-term investor, owning the more profitable business at the better price is usually the right call.
Key Takeaways Carvana's Q2 revenues rose 52.4% to $7.37 billion as retail units sold climbed 37.7% to a record.Retail revenue per unit increased 17.4% to $27,908, helping retail vehicle sales reach $5.5 billion.Carvana sees 2026 adjusted EBITDA of $2.7-$3 billion and expects third-quarter retail units to rise. E-commerce used vehicle retailer Carvana (CVNA - Free Report) reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing.
CVNA's Retail Volume Reaches a RecordRetail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052.
CVNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carvana's Gross Profit Rises, GPU DeclinesTotal gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million.
However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively.
CVNA's Margins Reflect Growth InvestmentsOperating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed.
Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose.
Carvana Expands Production CapacityInventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location.
The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027.
CVNA Builds Cash and LiquidityCash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million.
Carvana Sets Full-Year EBITDA OutlookFor the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035.
Key Releases From the Auto SpaceGeneral Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Ford (F - Free Report) reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion.
Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced that Mark Jenkins, Carvana's Chief Financial Officer, will presen
PHOENIX--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced that Mark Jenkins, Carvana's Chief Financial Officer, will present to the investor community and host meetings at the upcoming J.P. Morgan Automotive Conference. 2026 J.P. Morgan Automotive Conference Presentation: Wednesday, Aug. 12, 2026, at 10:10 a.m. ET* *A webcast of the presentation will be available on the Investor Relations section of Carvana's website (https://invest.
On July 29, Tempe, Arizona-based Carvana reported second-quarter revenue of $7.38 billion. It beat analyst estimates of $6.91 billion, according to Benzinga Pro. The company reported second-quarter earnings of 42 cents per share, beating estimates of 36 cents per share.
Cramer said although Forgent Power Solutions, Inc. (NYSE:FPS) is not cheap, it is right versus the others that are in the group.
Baird analyst Luke Junk, on July 16, initiated coverage on Forgent Power Solutions with an Outperform rating and announced a price target of $55.
Summit Therapeutics Inc. (NASDAQ:SMMT) is a “great spec,” Cramer said.
Summit Therapeutics, on July 23, reported a narrower-than-expected second-quarter loss and disclosed it does not have sufficient working capital to fund planned operations for the next twelve months.
Cramer said he needs to know more about NVE Corporation (NASDAQ:NVEC) because the stock just moved up so much.
On the earnings front, NVE reported a year-over-year increase in first-quarter financial results on July 22.
Cramer said he is not a seller of Reddit, Inc. (NYSE:RDDT) here. “I was surprised that the stock got hit as bad as it did. It should not have done so,” he added.
Reddit, on July 30, reported quarterly earnings of $1.25 per share, which beat the consensus estimate of 95 cents, according to Benzinga Pro data.
Price Action Forgent Power shares jumped 9.1% to settle at $36.29 on Monday. NVE shares surged 5.7% to close at $122.92 during the session. Summit Therapeutics shares gained 0.2% to settle at $13.05 on Monday. Carvana shares rose 6.1% to close at $66.13. Reddit shares jumped 10% to settle at $154.71 on Monday. Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Megan Brantley from @LikeFolio discusses Carvana (CVNA), saying consumer demand remains strong as buyers continue choosing the online used-car retailer at an increasing rate. She believes the stock was overly punished following its earnings reaction and maintains that the underlying business remains strong.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Carvana Co. (NYSE:CVNA) shares fell nearly 12% on Thursday morning despite the company reporting record second-quarter profits, as investors weighed a disappointing full-year earnings outlook against another quarter of outsized growth.
The online used-car retailer posted record net income of $513 million, up $205 million from a year earlier, while adjusted EBITDA rose $168 million year-over-year to a record $769 million. GAAP operating income also set a record at $680 million, up $169 million from the same period last year.
"Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," said Ernie Garcia, Carvana’s CEO. "We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here."
Retail units grew 38% year-over-year and came in 1% above consensus, marking the company's 10th straight quarter of upside to unit estimates, according to analysts at Jefferies. Revenue grew 52% year-over-year, outpacing unit growth on higher used car prices, a mix shift toward more expensive vehicles, and a transitory accounting tailwind that is expected to lapse in the third quarter.
Jefferies said total gross profit per unit was in line with expectations, as downside in other GPU offset upside in retail GPU. The firm attributed the retail GPU gain partly to higher industry prices following FTC guidance directing dealers to include fees in listed prices, while the shortfall in other GPU stemmed from Carvana's decision to hold consumer lending rates steady even as benchmark rates rose.
For the full year, Carvana guided to EBITDA of $2.7 billion to $3 billion, a range Jefferies called disappointing even as the firm said the guidance is likely conservative given Carvana's history of beating the high end of its prior full-year targets by 15% in 2024 and 2% in 2025.
Jefferies reiterated a Buy rating on the stock with an $88 price target, implying 26 times projected 2027 EV/EBITDA, and said it would recommend buying any weakness in the shares.
Key Takeaways CVNA sold 197,325 retail units in Q2, up 38% year over year, with revenue rising 52% to $7.376B.CVNA is expanding inventory capacity to improve selection, conversion rates and logistics performance.CVNA maintained 2026 adjusted EBITDA guidance of $2.7B-$3.0B as execution remains central. Carvana Co. (CVNA - Free Report) discussed execution, inventory expansion and operational improvements during its second-quarter 2026 earnings call, with management emphasizing the need to scale its operating platform to support continued growth.
The company reported earnings per share of $0.42 versus the Zacks Consensus Estimate of $0.42, while revenue came in at $7.38 billion compared with the Zacks Consensus Estimate of $6.99 billion. Revenue surpassed expectations by approximately 5.6%.
CVNA Builds Capacity for GrowthCEO Ernest Garcia said Carvana sold nearly 200,000 vehicles during the quarter, with the company focused on expanding inventory availability and strengthening execution across its network.
Garcia explained that inventory growth supports a broader operating cycle by improving customer selection, conversion rates, marketing efficiency and logistics performance.
Management reiterated its long-term goal of expanding the platform’s capacity while maintaining profitability.
Carvana Highlights Operational ProgressCarvana delivered record second-quarter retail units of 197,325, up 38% year over year, and revenue of $7.376 billion, up 52% year over year.
CFO Mark Jenkins said growth was driven by improved customer experience, stronger awareness and increasing inventory selection. He also highlighted continued operating leverage as the company scaled.
The company posted record net income of $513 million and adjusted EBITDA of $769 million. Adjusted EBITDA margin was 10.4%, while net income margin improved to 7.0%.
CVNA Addresses Inventory ChallengesManagement identified inventory availability as a key operational priority after inventory growth trailed sales growth. Garcia said improving production capacity would help support conversion rates and future growth.
Carvana said reconditioning operations improved after earlier challenges, allowing the company to shift focus back toward expanding inventory and returning vehicle mix closer to historical levels.
During Q&A, a Morgan Stanley analyst asked about reconditioning improvements and retail GPU trends. Garcia said the company had made progress on costs and was continuing to optimize inventory growth and pricing operations.
Carvana Balances Customer InvestmentsCarvana discussed its decision to pass some efficiency gains back to customers through financing rates. Garcia said management views these investments as supporting long-term customer value and growth.
Management noted that other GPU declined year over year due partly to customer-facing rate reductions and higher benchmark rates, but efficiency gains in financing helped offset some of the pressure.
Analysts pressed management on GPU trends and profitability drivers. Executives maintained that overall execution, rather than individual quarterly movements, remains central to long-term performance.
CVNA Provides 2026 OutlookCarvana expects retail units sold in the third quarter to increase sequentially from the second quarter. The company maintained full-year 2026 adjusted EBITDA guidance of $2.7 billion to $3.0 billion compared with $2.24 billion in the prior year.
Jenkins said the guidance reflects the company’s approach of providing more detailed expectations as visibility improves through the year.
A JPMorgan analyst questioned the second-half profitability outlook. Garcia said results would depend on execution against inventory expansion, production capacity and operational initiatives.
Carvana Maintains Execution FocusManagement entered the second half of 2026 focused on expanding production capacity, improving customer experience and continuing efficiency gains throughout the business.
Executives highlighted the company’s stronger financial position, including a reduction in net debt to trailing 12-month adjusted EBITDA to 1.0x during the quarter.
The company’s message centered on balancing growth investments with profitability while continuing to build its operating platform.
What CVNA’s Zacks Signals IndicateCarvana has a Zacks Rank #3 (Hold). The stock’s current Zacks data shows a Value Score of F, Growth Score of D, Momentum Score of C and VGM Score of F.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores are designed to evaluate a stock’s characteristics across value, growth and momentum factors, with higher scores representing stronger relative attributes. The Zacks Rank can change following earnings estimate revisions after the latest quarterly results.
Automotive eCommerce firm Carvana’s continuing rollout of software platforms across its operations contributed to the company’s record second-quarter results, Carvana President, CEO and Chairman Ernie Garcia said during a Wednesday (July 29) earnings call.
During the second quarter, Carvana set records in retail units sold, quarterly Q2 net income and adjusted EBITDA. Retail units sold increased 38% year over year to 197,000, net income totaled $513 million and adjusted EBITDA reached $769 million, according to a Wednesday earnings release.
Carvana achieved its retail unit sales growth during a quarter in which the industry was down about 4 points year over year, Garcia said during the call.
Garcia attributed the company’s gains to its execution and “building the machine” that includes reconditioning the used cars it acquires, optimizing its last-mile logistics for delivering those cars and continually enhancing the customer experience as it sells them.
Carvana is rolling out new technology but is making process improvements even where the technology is not yet in place, Garcia said.
“I think the progress that we’re seeing across the entire business enabled by AI, whether it’s just every product in the business being able to move more quickly or if it’s customer experiences getting better and simpler, I think that’s exceedingly clear,” Garcia said.
Garcia highlighted Carvana’s customer experience agent Sebastian, saying it helped the company reduce its customer care costs by 40% year over year three years ago, another 30% two years ago, another 20% one year ago and another 10% this year.
Carvana’s second-quarter shareholder letter, released Wednesday ,highlighted the company’s management-focused CARLI tools, which are supporting consistent execution at the company’s production facilities as it scales.
Carvana’s entry into the new car business is being well-received by customers, Garcia said, though he said he wouldn’t share much detail until the company gets more data.
It was reported in May that Carvana was making a push into the new vehicle market by acquiring a network of seven Stellantis dealerships. The move enables the company to sell new Chrysler, Jeep, Ram and Dodge vehicles while using the digital playbook from its used car business, which includes no-haggle pricing and remote transactions.
“I think it’s still very early days,” Garcia during the call. “Obviously, the operational implications of new cars are very different than used cars. In used cars, we need to kind of remanufacture those cars. In new cars, you are outsourcing manufacturing to somebody else. It’s a simpler operational problem for us.”
Carvana CVNA opened in the “red” this morning as management’s lowered guidance tempered the firm’s record Q2, featuring a 38% increase in retail units sold.
Still, Needham’s senior analyst Chris Pierce recommends buying the dip in CVNA, noting it could actually double from current levels over the next 12 months.
That said, the muted outlook adds to pressure on Carvana stock that was already down nearly 40% heading into the earnings release.
Carvana now expects full-year adjusted EBITDA to fall between $2.7 billion and $3.0 billion.
While that still suggests a meaningful increase on a year-over-year basis, the midpoint of that range missed the $2.99 billion consensus by a significant margin.
In the earnings release, management cited some pressure on Gross Profit per Unit (GPU) non-retail components, temporary inventory rebalancing costs, and broader consumer spending uncertainty amidst a higher-for-longer interest rate environment.
While Q2 net income hit a robust $769 million, traders focused heavily on the “moderated” near-term margin expectations, leading to short-term profit-taking in CVNA shares.
Adding to pressure is algorithmic selling as Carvana tumbled through its 20-day moving average (MA) – a technical breakdown that often accelerates bearish momentum in the near-term.
In a note to clients, Needham’s Chris Pierce urged investors not to get bogged down by short-term metric noise.
Pierce maintained CVNA on Needham’s coveted Conviction List – emphasizing that the market is overreacting to temporary guidance tweaks rather than focusing on durable unit volume growth.
Needham’s $120 target values Carvana shares at roughly 30x its estimated 2028 adjusted EBITDA and assumes the company will ultimately achieve its long-term milestone of 3 million annual retail sales at 12.6% margins.
According to the Needham analyst, the current valuation bakes in an excessively pessimistic timeline, ignoring CVNA’s unmatched infrastructure advantages, proprietary artificial intelligence (AI) logistics, and expanding nationwide reconditioning network.
While guidance adjustments can spark immediate market turbulence, Carvana’s core disruption of the highly fragmented $1 trillion US used vehicle market remains firmly intact.
By leveraging central reconditioning hubs and direct-to-consumer delivery, the company operates with structural cost advantages over traditional dealership networks.
Short-term margin volatility often creates disconnects between intrinsic value and market price.
For growth-oriented investors with a 12-to-36-month horizon, Needham's bullish analysis suggests the current dip presents a “compelling risk-reward entry point” before CVNA stock’s next leg of operational expansion takes hold.
Crucially, other Wall Street firms seem to agree with Needham on Carvana Co as well.
According to The Wall Street Journal, the consensus rating on the online car retailer remains at “Overweight”, with the mean price target of about $86 indicating potential upside of about 45% from here.
Index Dow Jones +0,69 % na 51948,4 b. S&P 500 +1,24 % na 7406,94 b. Nasdaq Composite +2,35 % na 25016,99 b.
Wall Street zaznamenává návrat k růstu, a to díky oživení u čipových společností, zatímco ekonomická data naznačila, že americká ekonomika zůstává v dobré kondici, ale nepřehřívá se. Pod tlakem jsou v úvodu zejména softwarové společnosti po nedávném růstu. Trhy taktéž vyčkávají na další várku výsledků, přičemž již dnes po uzavření trhů se můžeme těšit na čísla Applu a Amazonu. V popředí dnešního vývoje je růst Microsoftu (+14,5 %) po silných výsledcích a naopak pokles společnosti Meta Platforms (-9,1 %) poté, co výhled pro 3Q zklamal.
Své výsledky hospodaření zveřejnila další řada společností. Připravili jsme také reporty pro společnosti Samsung Electronics, Starbucks (+2,0 %), Lam Research (+20 %), Fortinet (+3,5 %) a QUALCOMM (-3,7 %).
Vůbec se nedaří akciím softwarové společnosti Fair Isaac Corp. (-15 %) po zveřejnění výsledků za 3Q FY 2026. Výnosy meziročně vzrostly o 26 % na 674,2 mil. USD, pod odhady 681,8 mil. USD. Očištěný zisk na akcii dosáhl 12,18 USD při konsensu 11,88 USD. Podle Bloombergu největší zklamání přišlo z nedostatečného navýšení celoročního výhledu. Společnost v aktuálním fiskálním roce očekává výnosy ve výši 2,53 mld. USD, což je sice navýšení z původního odhadu 2,45 mld. USD, ale pod odhady trhu 2,56 mld. USD. Očištěný zisk na akcii by měl dosáhnout 42,43 USD (dřívější výhled činil 40,45 USD), což však zaostalo za očekáváním 43,15 USD.
Výrazně také ztrácí akcie Carvana (-9,9 %). Tento internetový prodejce automobilů zveřejnil výsledky a celoroční výhled očištěného zisku, jehož střední hodnota zaostala za odhady analytiků. Ti označují výsledky za smíšené, zatímco podle JPMorgan může být výhled společnosti příliš konzervativní. Společnost očekává v celém roce očištěný zisk EBITDA v rozmezí 2,7 až 3,0 mld. USD. Trh projektoval 2,99 mld. USD.
Index S&P 500 +1,24 % na 7406,94 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +4,6 % Komunikační služby -3,1 % Zbytná spotřeba +1,6 % Zdravotní péče -2 % Průmysl +0,6 % Nezbytná spotřeba -2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lam Research Corp (LRCX) +20 % Fair Isaac Corp (FICO) -15 % EMCOR Group (EME) +19 % CH Robinson Worldwide (CHRW) -13 % Sandisk Corp (SNDK) +19 % L3Harris Technologies (LHX) -10 % Baxter International (BAX) +16 % Carvana (CVNA) -9,9 % Western Digital Corp (WDC) +16 % Workday (WDAY) -9,2 % Zdroj: Bloomberg
Carvana stock is under pressure after the used-car retailer’s guidance left Wall Street a bit confused. (Mark Ralson/AFP via Getty Images)
Shares of Carvana fell Thursday after the used-car retailer reported second-quarter earnings that mostly met expectations. Guidance, however, left investors scratching their heads.
Carvana stock is showing notable weakness. What’s behind CVNA decline? Carvana’s Growth Streak Hits 10 QuartersCarvana reported earnings per share of 42 cents, beating the consensus estimate of 36 cents. In addition, it reported revenue of $7.37% billion, beating the consensus estimate of $6.90 billion.
Carvana sold 197,325 retail units, up 38% year-over-year, marking an all-time quarterly record. Net income came in at a record $513 million, up $205 million year-over-year, while adjusted EBITDA reached a record $769 million, up $168 million year-over-year. GAAP operating income also hit a record $680 million, up $169 million year-over-year.
“Q2 2026 was Carvana’s 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior,” said Ernie Garcia, Carvana founder and CEO. “At Carvana’s current run-rate scale of almost 800k retail units and over $2 billion net income, we are still just 1.5% of the U.S. automotive market.”
Q3, FY GuidanceCarvana expects a sequential increase in retail units sold in the third quarter and full-year 2026 adjusted EBITDA of $2.7 billion to $3.0 billion.
Analyst Consensus & Recent ActionsThe stock carries a Buy rating with an average price forecast of $116.72. Recent analyst moves include:
Morgan Stanley: Overweight (Lowers Target to $90.00) (July 30) BTIG: Buy (Lowers Target to $87.00) (July 30) Needham: Buy (Maintains Target to $120.00) (July 30) Carvana Shares Crash CVNA Price Action: At the time of publication, Carvana shares are trading 14.22% lower at $56.89, according to data from Benzinga Pro.
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Retail Units Sold: 197,325 units in Q2 2026, a 38% increase year-over-year, a new company record.Revenue: $7.376 billion in Q2 2026, a 52% increase year-over-ye
PHOENIX--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the leading e-commerce platform for buying and selling cars, today announced financial results for the quarter ended June 30, 2026. Carvana's complete second quarter 2026 financial results and management commentary are available in the company's shareholder letter on the quarterly results page of its Investor Relations website. “Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by.
Margaret Kehan - Senior Director of Capital Markets & Investor Relations
Ernest Garcia - Co-Founder, President, CEO & Chairman
Mark Jenkins - Chief Financial Officer
Conference Call Participants
Daniela Haigian - Morgan Stanley, Research Division
John Colantuoni - Jefferies LLC, Research Division
Rajat Gupta - JPMorgan Chase & Co, Research Division
Ronald Josey - Citigroup Inc., Research Division
Brian Nagel - Oppenheimer & Co. Inc., Research Division
Sharon Zackfia - William Blair & Company L.L.C., Research Division
Andrew Boone - Citizens JMP Securities, LLC, Research Division
Jeffrey Lick - Stephens Inc., Research Division
John Babcock - Barclays Bank PLC, Research Division
Marvin Fong - BTIG, LLC, Research Division
Joseph Spak - UBS Investment Bank, Research Division
Michael McGovern - BofA Securities, Research Division
Christopher Pierce - Needham & Company, LLC, Research Division
Presentation
Operator
Hello, and welcome to the Carvana Second Quarter 2026 Earnings Call. [Operator Instructions] I will now turn the conference over to Meg Kehan, Investor Relations. Please go ahead.
Margaret Kehan
Senior Director of Capital Markets & Investor Relations
Thank you. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's Second Quarter 2026 Earnings Conference Call. Please note that this call is being webcast and can be accessed along with our Q2 shareholder letter and supplemental financial tables, on the Investor Relations section of the company's corporate website at investors.carvana.com.
Joining me on the call today are Ernie Garcia, Chief Executive Officer; and Mark Jenkins, Chief Financial Officer. Before we get started, I would like to remind you that this discussion contains forward-looking statements within the meaning of the federal securities laws, including, but not limited to, Carvana's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here.
This Single Factor Is Holding Back Carvana’s Disruptive EdgeCarvana NYSE: CVNA reported record second-quarter results as retail unit sales rose 38% year over year to 197,325 vehicles and revenue increased 52% to $7.38 billion. The online used-car retailer also posted record adjusted EBITDA of $769 million, net income of $513 million and GAAP operating income of $680 million.
Chief Executive Officer Ernie Garcia said the company sold “almost 200,000 cars” during the quarter, nearly double its sales volume from two years earlier. He said that scale still represents approximately 2% of the used-car market and 1.5% of the broader auto retail market, underscoring the company’s remaining growth opportunity.
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Avis, CarMax, and Carvana: 3 Car Stocks Sharply DivergeCarvana said its annualized adjusted EBITDA run rate exceeded $3 billion for the first time. Garcia said annualized operating income and net income were approximately $2.7 billion and $2 billion, respectively.
Growth Tied to Inventory Expansion Garcia emphasized the relationship between regional inventory expansion and sales growth. In the Midwest and Northeast, where Carvana added the most retail production capacity, inventory increased 57% and sales rose 54% in the second quarter. In the West and Southeast, where less capacity was added, inventory increased 17% and sales grew 30%.
Carvana's 5-for-1 Split: Green Light for a New Growth EraAccording to Garcia, larger local inventory assortments improve the odds that customers find vehicles they want, lifting conversion rates and making advertising spending more efficient. More vehicles near customers can also reduce delivery times and shipping fees while improving logistics efficiency, he said.
The company said it had recently focused on bringing reconditioning costs under control before returning to inventory growth. Garcia said the company began increasing inventory more in line with sales during the middle of the second quarter and is moving back toward its traditional mix of vehicle ages and mileage after leaning into newer, higher-priced vehicles that required less reconditioning.
Chief Financial Officer Mark Jenkins said revenue growth exceeded unit growth partly because of traditional gross-revenue treatment for certain vehicles acquired from a large retail marketplace partner, higher industry vehicle prices and a mix shift toward newer, more expensive vehicles. He said the revenue-treatment change will no longer affect year-over-year comparisons beginning in the third quarter, when revenue growth is expected to be more aligned with retail unit growth.
Profitability and Expense Trends Non-GAAP retail gross profit per unit declined $105 from a year earlier, primarily because the company lapped an approximately $100 benefit from tariff-related effects in the prior year. Higher non-vehicle costs, including inbound transportation fuel expenses, were more than offset by higher retail appreciation, Jenkins said.
Non-GAAP wholesale GPU declined $158, as retail unit growth outpaced wholesale gross profits. Non-GAAP Other GPU declined $192, driven mainly by Carvana’s decision to offer customers lower interest rates and by higher benchmark rates. Those pressures were partly offset by lower funding costs, higher average amounts financed and higher finance attachment rates.
Garcia said Carvana passed more than 100 basis points of interest-rate reductions to customers over the past year, with a greater focus on prime borrowers. He said the company’s fundamental financing gains helped offset a portion of the resulting pressure on Other GPU.
Carvana’s non-GAAP SG&A expense per retail unit sold declined by $157. The company cited a $272 reduction in overhead expense per unit, partly offset by an $88 increase in operations expense per unit, mainly due to fuel costs. Advertising expense rose $27 per retail unit as the company continued to invest in awareness and said it expects advertising dollars to increase in the third quarter.
Net income was $513 million, up $205 million year over year. Net income margin was 7.0%, compared with 6.4% a year earlier. Adjusted EBITDA margin was 10.4%, compared with 12.4%, with the decline primarily attributed to the gross-revenue treatment that increased retail revenue per unit. Net debt to trailing 12-month adjusted EBITDA fell to 1.0 times, which Jenkins called the company’s strongest financial position to date. Outlook and Long-Term Goals For the third quarter, Carvana expects a sequential increase in retail units sold. For full-year 2026, the company forecast adjusted EBITDA of $2.7 billion to $3.0 billion, compared with $2.24 billion in 2025, assuming the operating environment remains stable.
Management said the company’s long-term objective remains selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin between 2030 and 2035. Garcia said the company now needs to grow to less than four times its current scale to reach that target, compared with approximately six times its scale when the goal was introduced in early 2025.
The company also discussed artificial intelligence initiatives, including its Sebastian customer-assistance tool. Garcia said customer-care costs have declined annually over the last four years, falling 40% three years ago, 30% two years ago, 20% last year and 10% this year. He attributed those reductions in part to increasingly capable digital customer experiences.
Carvana said it is continuing to roll out operational tools, including Roll Call and Leader Hub, over coming quarters. It is also evaluating additional production capacity through ADESA-site conversions, existing inspection centers and a newly initiated fresh-build location.
On new-vehicle efforts, Garcia said the initiative remains early but that customer satisfaction scores for new-car transactions have been “very high.” He said new cars are currently profitable for the company, though management did not provide further details on expected gross profit or inventory implications.
About Carvana (NYSE:CVNA)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Carvana Co (CVNA) released its 8-K filing on July 29, 2026, showcasing impressive quarterly performance that surpassed analyst expectations in key areas. The co
Carvana (CVNA - Free Report) came out with quarterly earnings of $0.42 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.34, delivering a surprise of +21.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Carvana, which belongs to the Zacks Internet - Commerce industry, posted revenues of $7.38 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.55%. This compares to year-ago revenues of $4.84 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Carvana shares have lost about 21.7% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Carvana?While Carvana has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Carvana was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $7.49 billion in revenues for the coming quarter and $1.63 on $28.31 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Commerce.com (CMRC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Commerce.com's revenues are expected to be $85.31 million, up 1.1% from the year-ago quarter.
Carvana (CVNA - Free Report) reported $7.38 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 52.4%. EPS of $0.42 for the same period compares to $0.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +5.55%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.42.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Carvana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Per retail unit gross profit - Total: $7,014.00 compared to the $6,796.56 average estimate based on four analysts.Per retail unit gross profit - Retail vehicle: $3,547.00 compared to the $3,282.16 average estimate based on four analysts.Unit sales - Retail vehicle unit sales: 197,325 versus 198,190 estimated by four analysts on average.Per unit revenue - Wholesale vehicles: $10,633.00 versus $11,079.20 estimated by three analysts on average.Unit sales - Wholesale vehicle unit sales: 105,052 versus 97,755 estimated by three analysts on average.Per retail unit gross profit - Other: $2,666.00 versus $2,853.86 estimated by three analysts on average.Per unit revenue - Retail vehicles: $27,908.00 versus $25,395.83 estimated by three analysts on average.Per retail unit gross profit - Wholesale: $801.00 versus the two-analyst average estimate of $952.00.Sales and operating revenues- Retail vehicle sales, net: $5.51 billion versus the five-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +61.7%.Sales and operating revenues- Other sales and revenues: $526 million versus $559.44 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +28% change.Sales and operating revenues- Wholesale sales and revenues: $1.34 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.Gross Profit- Retail vehicle: $700 million versus the three-analyst average estimate of $640.75 million.View all Key Company Metrics for Carvana here>>>
Shares of Carvana have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Published in earnings earnings-estimates-revisions earnings-surprise
Shares of Carvana fell drastically during after-hours trading Wednesday after the company reported full-year guidance that failed to meet some of Wall Street's expectations for the auto retailer.
Carvana's stock fell by more than 20% shortly after the company reported its second-quarter results and guiding for earnings of between $2.7 billion and $3 billion this year. The stock recovered some of those losses, but was still trading down roughly 15% before the company's earnings call with analysts, which was set for 5:30 p.m. ET.
The guidance was lower than analyst expectations, which included forecasts of $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley.
The guidance means the company expects a relatively flat second half of the year compared with the first six months, with between $1.3 billion and $1.6 billion in adjusted earnings during the second half of this year. Such results would easily top Carvana's record $2.2 billion in adjusted earnings from 2025.
The new guidance follows the company reporting $1.4 billion in adjusted earnings before interest, taxes, depreciation and amortization during the first half of this year, including a record $769 million during the second quarter.
Carvana's second-quarter results included net income of $513 million, up $205 million from a year earlier; revenue of $7.38 billion compared to analyst estimates compiled by LSEG of $6.91 billion; and a 38% increase in vehicle sales to 197,325 units from April through June.
The company did not break out its sales of used versus new vehicles, which Carvana has been expanding into through Stellantis franchised dealerships.
Carvana said it expects a sequential increase in retail units sold in the third quarter compared to the second quarter, which the company said marked its 10th straight quarter of being "the fastest-growing and most profitable automotive retailer - achieving both by large margins."
"Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," Carvana CEO Ernie Garcia said in a release. "We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here."
Garcia in a quarterly letter to shareholders said the company remains on track to selling 3 million cars per year and achieving a 13.5% adjusted EBITDA margin by 2030 to 2035.
The company's adjusted margin during the second quarter was 10.4%, down 2 percentage points from a year earlier as it pushes its expansion efforts.
"We have only 2% market share of used retail and 1.5% market share of all automotive retail. Our runway is huge," Garcia said in the investor note.
Carvana stock is moving. Where is CVNA stock headed? Carvana Q2 Earnings HighlightsCarvana reported second-quarter revenue of $7.38 billion, beating analyst estimates of $6.91 billion, according to Benzinga Pro. The company reported second-quarter earnings of 42 cents per share, beating estimates of 36 cents per share.
Total revenue increased 52% year-over-year after Carvana sold 197,325 vehicles in the second quarter. Vehicle sales were up 38% on a year-over-year basis.
“Q2 2026 was Carvana’s 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior,” said Ernie Garcia, co-founder and CEO of Carvana.
“We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here.”
Carvana expects an increase in retail units sold in the third quarter compared to the second quarter. The company also guided for full-year adjusted EBITDA of $2.7 billion to $3 billion. Adjusted EBITDA in the second quarter came in at $769 million.
“We remain firmly on the path to selling three million cars per year and to achieving 13.5% Adjusted EBITDA margin by 2030 to 2035,” the company said in a letter to shareholders.
Carvana’s management team will discuss the quarter on an earnings call with investors and analysts at 5:30 p.m. ET.
CVNA Stock Dives After HoursCVNA Price Action: Carvana shares were down 15.57% in after-hours Wednesday, trading at approximately $56 at the time of publication, according to Benzinga Pro.
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FORT MYERS, Fla.--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced the expansion of same-day vehicle delivery for customers in the greater Fort Myers area. Select local customers can now receive their vehicle as soon as the same day they place an order on Carvana.com.With this launch, Fort Myers customers interested in selling their vehicles to Carvana can also schedule pickup or drop-off as soon as the same day after completing Carv.
Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, today announced the expansion of same-day vehicle delivery for customers in the g
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Wall Street analysts forecast that Carvana (CVNA - Free Report) will report quarterly earnings of $0.42 per share in its upcoming release, pointing to a year-over-year increase of 61.5%. It is anticipated that revenues will amount to $6.97 billion, exhibiting an increase of 43.9% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Carvana metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Sales and operating revenues- Retail vehicle sales, net' should arrive at $4.97 billion. The estimate suggests a change of +46% year over year.
The combined assessment of analysts suggests that 'Sales and operating revenues- Other sales and revenues' will likely reach $559.44 million. The estimate indicates a change of +36.1% from the prior-year quarter.
Analysts expect 'Sales and operating revenues- Wholesale sales and revenues' to come in at $1.28 billion. The estimate suggests a change of +25% year over year.
Analysts predict that the 'Per retail unit gross profit - Total' will reach $6796.56 . The estimate compares to the year-ago value of $7426.00 .
It is projected by analysts that the 'Unit sales - Retail vehicle unit sales' will reach 198,190 . The estimate is in contrast to the year-ago figure of 143,280 .
The consensus estimate for 'Per retail unit gross profit - Retail vehicle' stands at $3282.16 . Compared to the current estimate, the company reported $3636.00 in the same quarter of the previous year.
Analysts forecast 'Per retail unit gross profit - Other' to reach $2853.86 . The estimate is in contrast to the year-ago figure of $2869.00 .
The average prediction of analysts places 'Per unit revenue - Wholesale vehicles' at $11079.20 . The estimate is in contrast to the year-ago figure of $10746.00 .
The consensus among analysts is that 'Per unit revenue - Retail vehicles' will reach $25395.83 . Compared to the present estimate, the company reported $23765.00 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Unit sales - Wholesale vehicle unit sales' of 97,755 . Compared to the current estimate, the company reported 72,770 in the same quarter of the previous year.
According to the collective judgment of analysts, 'Markets at end of period (metropolitan statistical areas)' should come in at 317 . Compared to the current estimate, the company reported 316 in the same quarter of the previous year.
Analysts' assessment points toward 'Per retail unit gross profit - Wholesale' reaching $952.00 . The estimate is in contrast to the year-ago figure of $921.00 .
View all Key Company Metrics for Carvana here>>>
Over the past month, Carvana shares have recorded returns of -9.1% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), CVNA will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Carvana (CVNA - Free Report) closed at $60.19 in the latest trading session, marking a -4.08% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.15%.
The company's shares have seen a decrease of 7.6% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. It is anticipated that the company will report an EPS of $0.42, marking a 61.54% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.96 billion, indicating a 43.8% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $28.29 billion, representing changes of -2.96% and +39.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.54% upward. Carvana currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 38.36. For comparison, its industry has an average Forward P/E of 16.93, which means Carvana is trading at a premium to the group.
It's also important to note that CVNA currently trades at a PEG ratio of 10.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.11 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Carvana (CVNA -2.76%) turned many investors' heads when it began scooping up brick-and-mortar dealerships recently. The strategic move seemed to go against the entire company's vision of online used-car sales (we'll get into that in a second). A smaller detail many overlooked was that Carvana opted to buy Stellantis (STLA +0.26%) dealerships primarily, a strange decision given the automaker's long list of recent struggles and receding market share. That said, this strange pairing might just be a match made in heaven for Carvana, and here's why.
What's going on? At first glance, Carvana scooping up physical dealerships goes against its historic strategy, but in reality, it's attempting to disrupt the age-old dealership model as we know it. As it attempts this strategic pivot, there's also reason to believe the synergy created could reward investors.
Jeep will play a big role in reversing market share losses. Image source: Stellantis.
Carvana's physical dealerships still won't sell you a vehicle in person; instead, they're for test drives, showing car capabilities, and helping consumers buy from a larger selection online. What this strategy also does is give Carvana control of the entire trade-in lifecycle. One of the more challenging aspects for Carvana was bringing in valuable used-vehicle inventory. Controlling dealerships that allow consumers to bring trade-in vehicles when purchasing new ones gives Carvana a bloodline of used-vehicle inventory to boost its historical business.
Another aspect of this strategy is that Carvana's acquired dealerships still plan to use the service bay as usual, potentially unlocking additional service revenue from its consumer base that may want to continue doing business with Carvana. What some investors aren't aware of is that while new and used vehicles drive dealerships' top-line revenue, the most profitable aspects, by a large margin, are service and parts, and finance and insurance. Carvana is unlocking the bread-and-butter of dealerships that its traditional online-only business lacked: high-margin maintenance and repair.
The initial results are incredibly intriguing, with its Arizona store booming in sales and becoming a top-selling dealership. More specifically, according to reports from The Wall Street Journal, Carvana's recently purchased Arizona dealership went from averaging 30 to 50 monthly sales to selling more than 700 new vehicles in May, according to Stellantis figures given to CNBC.
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Here's why it's a great match While Stellantis would surely benefit from increased sales across many dealerships, the match is primarily important to Carvana. That's because, at least initially, Carvana has chosen to make Stellantis dealerships its primary purchase. The question is why. The old saying "Buy low, sell high" is a fitting one for this scenario. Stellantis has experienced executive turnover, including the appointment of a new CEO, and it recently unveiled a massive $70 billion global turnaround plan with a strong focus on North America.
Stellantis has faced seemingly endless questions over the past few years about its product decisions, shrinking product lineups, receding market share, delayed launches, and uncertainty about the future of some of its many brands. That story is likely to change over the next five years as 11 new vehicles are headed to the U.S. market as Stellantis is committing 70% of its future investment into four primary brands. Two of them -- Ram and Jeep -- are focused on turning around Stellantis' North America market.
Furthermore, a growing concern has been rising new-car prices. Some analysts have called this an affordability crisis. This gives Stellantis, and by extension Carvana, the opportunity to quickly boost sales from the growing consumer demand for more affordable vehicles. In fact, at least nine upcoming models are targeting launch prices starting under $40,000, and two are targeting under $30,000. Stellantis' reduced focus on less-profitable, typically pricier electric vehicles (EVs) could also help Carvana's early efforts in the new-car business.
What it all means for Stellantis and Carvana At the same time, Stellantis' struggles have given Carvana an opportunity to purchase dealerships at lower prices than in the past. It also strategically pivots to a company putting up tens of billions to revive market share, product lineups, and brand identity. You could argue that Stellantis, because of its massive investment and potential turnaround, could be the best dealership partner over the next five years as Carvana fine-tunes its new strategy to disrupt the industry.
It's certainly a strange pairing, considering Carvana's history of used-car and online-only sales, but it might just be a match made in heaven over the next five years, especially if early results continue. As far as these two companies go, this is a much bigger deal for Carvana. Not only is it perhaps timing the brands of physical dealerships perfectly, considering Stellantis' upcoming massive investment in product and branding, Carvana opening the doors to new-car sales will give it entirely new revenue and profit streams, including servicing that is higher margin, that its historical business has lacked. If Carvana executes its strategy and disrupts the new-car dealership model, its earnings and stock price could soar over the next five years.
Carvana (CVNA - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +61.5%.
Revenues are expected to be $6.96 billion, up 43.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.07% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Carvana?For Carvana, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.17%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Carvana will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Carvana would post earnings of $0.28 per share when it actually produced earnings of $0.34, delivering a surprise of +21.43%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Carvana doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Carvana's retail units surged 40% in Q1 2026, while Sonic expands across auto and powersports.Carvana's ADESA network supports growth, but heavy debt and spending could pressure profitability.Sonic's 2026 EchoPark EBITDA guidance assumes used-vehicle supply and pricing to gradually normalize. Carvana Co. (CVNA - Free Report) and Sonic Automotive, Inc. (SAH - Free Report) are both automotive retailers in the United States. Carvana has transformed car buying with a convenient online experience, letting customers browse used cars from home and choose home delivery or pickup at its iconic car vending machines. Carvana’s end-to-end online business model covers every aspect of used-car retailing, including sales, financing, logistics, inspection and repair centers, as well as software development.
Sonic pursues an omnichannel model and sells new and used cars and light trucks. It offers warranties, service contracts, vehicle financing and insurance. Further, it provides maintenance and repair services, and sells replacement parts and aftermarket automotive products.
Let’s dig deeper and compare the fundamentals of these two auto retailers to determine which is the better investment choice now.
The Case for CVNA StockThe ADESA U.S. acquisition continues to deepen Carvana’s logistics, auction and reconditioning network. As of the first quarter of 2026, Carvana had 16 ADESA integrated sites alongside its inspection and reconditioning centers, and it expects to integrate another 6 to 8 ADESA sites during 2026. The company is also expanding ADESA Clear as its digital wholesale platform. These initiatives increase inventory mobility and expand production options, which can support volume growth while keeping reconditioning buildouts more capital efficient.
ADESA recently announced the launch of ADESA Timed, an enhancement to its digital wholesale platform that enables financial institutions, fleets, rental companies and dealer groups to sell inventory through self-service timed digital auctions using the same technology and tools as ADESA Clear.
The e-commerce platform expects a sequential increase in retail units sold in the second quarter of 2026, and it remains on track to deliver growth in retail units for full-year 2026. Retail units sold rose 40% year over year in the first quarter of 2026 to a record 187,393 units, marking another quarter of outsized growth. The market remains highly fragmented, with Carvana’s share still small. This suggests that there is ample room for the company to expand, especially as more consumers gravitate toward online car buying. In the longer term, the company continues to target selling three million cars per year in the 2030 to 2035 time frame.
SG&A leverage remains visible as volume rises, and the company reported reductions in non-GAAP SG&A expense per retail unit sold versus last year. Carvana posted adjusted EBITDA of $672 million in the first quarter of 2026, a company record compared with $488 million in the year-ago period. Looking to the second quarter of 2026, it expects a sequential increase in adjusted EBITDA, and it reiterated its longer-term goal of reaching a 13.5% adjusted EBITDA margin as scale increases and fixed costs are leveraged.
However, Carvana’s debt load remains sizable. As of March 31, 2026, long-term debt was $4.85 billion, up from $4.83 billion as of Dec. 31, 2025. Its debt-to-capital ratio stands at 0.53 compared with the auto sector’s 0.25. Elevated leverage restricts the firm’s flexibility to tap into growth opportunities.
Carvana is still heavily investing in advertising, technology, automation, facilities and AI-related systems. While these investments are intended to support long-term growth, they also create ongoing cost pressure. Overhead expenses are now at a structurally higher level compared to 2025 due to technology and facility investments. Advertising expense per unit also increased as the company continues aggressively promoting its platform. These spending commitments may delay margin expansion if revenue growth slows or if operational gains take longer than expected to materialize.
The Zacks Consensus Estimate for CVNA’s 2026 sales and EPS implies year-over-year growth of 39.2% and a decline of 3%, respectively. EPS estimates for 2026 have improved by a penny in the past seven days. EPS estimates for 2027 have declined 2 cents in the past seven days.
Image Source: Zacks Investment Research
The Case for SAH StockThe buyout of RFJ Auto Partners, completed in 2021, expanded Sonic Automotive’s reach and helped it become one of the top five U.S. dealership groups. In the second quarter of 2025, Sonic acquired four Jaguar and Land Rover dealerships in California and became the largest U.S. retailer of these brands.
Moreover, the acquisition of five Harley-Davidson dealerships has strengthened its diversification strategy and expanded its exposure to the faster-growing powersports retail market. The deal lifts Sonic Powersports to 20 rooftops and 46 franchises, including nine full-service Harley-Davidson dealerships, positioning the unit among the top five U.S. powersports dealer groups. This comes after record 2025 company revenues of $15.2 billion and Powersports revenues of $202.9 million with $11.5 million in adjusted EBITDA, suggesting the segment is scaling from a stronger financial base. Broader brand coverage and entry into active riding markets should support incremental sales, service, parts and merchandise opportunities. The company expects 2026 Powersports adjusted EBITDA to be in the range of $14 to $17 million compared with $11.5 million in 2025.
Sonic’s EchoPark segment operates independently from the franchised dealerships business, sells used cars and light trucks and arranges Finance & Insurance product sales for customers in pre-owned vehicle specialty retail locations. In the first quarter of 2026, EchoPark revenues increased 4% year over year to $580.5 million and adjusted EBITDA reached $18.6 million. A gradual increase in used-vehicle supply and more normalized pricing should support demand and lift EchoPark’s retail unit volumes. Sonic is investing in EchoPark’s digital tools, including its app and broader digital retail platform, to support an omnichannel buying process. For 2026, the company expects high single-digit growth in used retail unit sales volume and total GPU of $3,400 to $3,600, and raised adjusted EBITDA guidance to $35 million to $40 million.
However, the company’s stretched balance sheet remains a concern. SAH ended the first quarter of 2026 with $1.5 billion in long-term debt and just $5.7 million. Long-term debt-to-capital is 0.66 versus the industry’s 0.26.
The Zacks Consensus Estimate for SAH’s 2026 sales and EPS implies year-over-year growth of 2.9% and 5.2%, respectively. EPS estimates for 2026 and 2027 have improved 2 cents and 5 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Price Performance of CVNA & SAHCVNA stock has declined 20.2% year to date, while shares of SAH have surged 62.3%. The auto sector has declined 12.2% in the same time frame.
Image Source: Zacks Investment Research
ConclusionWhile Carvana offers stronger growth potential through its scalable e-commerce model, expanding ADESA network and robust retail volume growth, its high debt burden and elevated investments in technology, facilities and advertising could pressure profitability.
In contrast, Sonic benefits from a diversified business model spanning new and used vehicle sales, after-sales services and powersports, while EchoPark provides additional exposure to the growing used-car market. An improved 2026 earnings outlook and stronger EPS growth expectations also enhance prospects. Although Sonic's leverage remains high, its broader revenue base and diversification provide greater stability.
SAH carries a Zacks Rank #2 (Buy), while CVNA has a Zacks Rank #3 (Hold). Moreover, with shares already up sharply, the market appears to recognize Sonic's improving fundamentals, making it a more balanced investment option. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
California Public Employees Retirement System trimmed its holdings in shares of Carvana Co. (NYSE:CVNA – Free Report) by 23.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 183,866 shares of the company’s stock after selling 54,830 shares during the period. California Public Employees Retirement System owned 0.08% of Carvana worth $57,804,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also modified their holdings of the business. Price T Rowe Associates Inc. MD grew its holdings in Carvana by 8.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock worth $7,481,081,000 after acquiring an additional 1,407,762 shares during the period. Vanguard Group Inc. lifted its stake in shares of Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock valued at $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp lifted its stake in shares of Carvana by 93.7% in the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after purchasing an additional 2,764,759 shares during the period. Capital Research Global Investors boosted its position in shares of Carvana by 42.9% in the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock worth $2,405,959,000 after purchasing an additional 1,711,144 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock worth $1,632,763,000 after purchasing an additional 1,382,852 shares during the last quarter. 56.71% of the stock is owned by institutional investors.
Analysts Set New Price Targets A number of equities analysts have issued reports on CVNA shares. BTIG Research restated a “buy” rating and set a $97.00 target price on shares of Carvana in a report on Friday, June 5th. Argus lowered their price target on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. Stephens increased their price target on shares of Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Citigroup reissued an “outperform” rating on shares of Carvana in a research note on Friday, May 1st. Finally, Citizens Jmp boosted their price objective on shares of Carvana from $92.00 to $103.00 and gave the company a “market outperform” rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $92.92.
Read Our Latest Stock Report on CVNA
Carvana Stock Performance Shares of Carvana stock opened at $67.50 on Monday. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The firm has a market cap of $74.04 billion, a price-to-earnings ratio of 41.06, a price-to-earnings-growth ratio of 11.34 and a beta of 3.46. The stock’s 50-day moving average is $67.86 and its 200-day moving average is $72.29. Carvana Co. has a one year low of $54.46 and a one year high of $97.38.
Carvana (NYSE:CVNA – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37. The company had revenue of $6.43 billion for the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Equities analysts predict that Carvana Co. will post 1.58 earnings per share for the current fiscal year.
Insider Activity at Carvana In other Carvana news, COO Benjamin E. Huston sold 50,000 shares of the company’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $76.99, for a total value of $3,849,600.00. Following the transaction, the chief operating officer directly owned 529,810 shares of the company’s stock, valued at $40,791,131.52. This represents a 8.62% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $67.15, for a total transaction of $375,838.55. Following the transaction, the insider owned 315,075 shares in the company, valued at approximately $21,157,286.25. The trade was a 1.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 396,962 shares of company stock worth $28,525,088 in the last three months. 15.19% of the stock is owned by company insiders.
Carvana Company Profile (Free Report)
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.
Further Reading Five stocks we like better than Carvana Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks Want to see what other hedge funds are holding CVNA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Carvana Co. (NYSE:CVNA – Free Report).
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Fifth Third Bancorp raised its position in Carvana Co. (NYSE:CVNA – Free Report) by 3,547.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 14,154 shares of the company’s stock after buying an additional 13,766 shares during the period. Fifth Third Bancorp’s holdings in Carvana were worth $4,450,000 at the end of the most recent quarter.
Other hedge funds have also made changes to their positions in the company. Sequoia Financial Advisors LLC grew its stake in Carvana by 6.8% in the first quarter. Sequoia Financial Advisors LLC now owns 3,739 shares of the company’s stock worth $1,175,000 after purchasing an additional 237 shares in the last quarter. Hsbc Holdings PLC grew its position in shares of Carvana by 6.3% during the first quarter. Hsbc Holdings PLC now owns 235,769 shares of the company’s stock worth $73,820,000 after acquiring an additional 14,042 shares during the last quarter. Whipplewood Advisors LLC acquired a new stake in shares of Carvana in the first quarter valued at approximately $36,000. Resona Asset Management Co. Ltd. increased its stake in shares of Carvana by 4.1% in the first quarter. Resona Asset Management Co. Ltd. now owns 40,772 shares of the company’s stock valued at $12,634,000 after purchasing an additional 1,603 shares during the period. Finally, Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new stake in shares of Carvana during the first quarter valued at approximately $326,000. Institutional investors and hedge funds own 56.71% of the company’s stock.
Carvana Price Performance NYSE CVNA opened at $67.50 on Friday. Carvana Co. has a twelve month low of $54.46 and a twelve month high of $97.38. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The stock has a market capitalization of $74.04 billion, a PE ratio of 41.06, a P/E/G ratio of 11.34 and a beta of 3.46. The stock has a 50-day simple moving average of $67.86 and a 200 day simple moving average of $72.29.
Carvana (NYSE:CVNA – Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The business had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Research analysts anticipate that Carvana Co. will post 1.58 EPS for the current year.
Key Headlines Impacting Carvana Here are the key news stories impacting Carvana this week:
Negative Sentiment: Zacks Research downgraded Carvana (CVNA) from strong-buy to hold, a step that can dampen investor confidence. Article Title Negative Sentiment: Analysts lowered earnings estimates for several upcoming periods, including FY2027 and FY2028, suggesting expectations for slower profit growth than previously projected. Article Title Neutral Sentiment: Despite the cuts, Zacks still expects Carvana to remain profitable, with consensus full-year earnings estimated at $1.58 per share and longer-term EPS forecasts still pointing higher. Article Title Wall Street Analyst Weigh In Several research firms recently weighed in on CVNA. UBS Group reaffirmed a “buy” rating and issued a $104.00 price objective (up from $97.00) on shares of Carvana in a report on Thursday, April 30th. Citigroup reiterated an “outperform” rating on shares of Carvana in a research report on Friday, May 1st. Morgan Stanley raised their price objective on Carvana from $90.00 to $102.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. BNP Paribas Exane lifted their target price on Carvana from $77.60 to $85.80 in a report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $107.40 target price on shares of Carvana in a research report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and a consensus price target of $92.92.
Check Out Our Latest Analysis on CVNA
Insiders Place Their Bets In other news, COO Benjamin E. Huston sold 50,000 shares of the firm’s stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $76.99, for a total transaction of $3,849,600.00. Following the completion of the transaction, the chief operating officer directly owned 529,810 shares of the company’s stock, valued at approximately $40,791,131.52. This trade represents a 8.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of Carvana stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the sale, the director owned 186,470 shares in the company, valued at approximately $12,648,260.10. This trade represents a 7.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 396,962 shares of company stock valued at $28,525,088 in the last ninety days. 15.19% of the stock is currently owned by insiders.
Carvana Company Profile (Free Report)
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.
Further Reading Five stocks we like better than Carvana Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors Want to see what other hedge funds are holding CVNA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Carvana Co. (NYSE:CVNA – Free Report).
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« PREVIOUS HEADLINEResources Connection, Inc. (NASDAQ:RGP) Short Interest Update
Allspring Global Investments Holdings LLC lessened its holdings in shares of Carvana Co. (NYSE:CVNA – Free Report) by 4.9% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 218,359 shares of the company’s stock after selling 11,174 shares during the quarter. Allspring Global Investments Holdings LLC owned 0.10% of Carvana worth $68,148,000 as of its most recent SEC filing.
Several other institutional investors have also recently bought and sold shares of the business. Wealthfront Advisers LLC increased its position in shares of Carvana by 2.0% during the first quarter. Wealthfront Advisers LLC now owns 27,919 shares of the company’s stock worth $8,777,000 after acquiring an additional 559 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of Carvana by 2.4% in the first quarter. Bank of New York Mellon Corp now owns 710,264 shares of the company’s stock worth $223,293,000 after purchasing an additional 16,692 shares during the last quarter. Checchi Capital Advisers LLC purchased a new stake in shares of Carvana in the first quarter worth approximately $212,000. Principal Financial Group Inc. lifted its holdings in shares of Carvana by 3.6% in the first quarter. Principal Financial Group Inc. now owns 161,426 shares of the company’s stock valued at $50,749,000 after purchasing an additional 5,568 shares in the last quarter. Finally, Fifth Third Bancorp lifted its holdings in shares of Carvana by 3,547.9% in the first quarter. Fifth Third Bancorp now owns 14,154 shares of the company’s stock valued at $4,450,000 after purchasing an additional 13,766 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.
Insider Buying and Selling In other news, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the transaction, the director directly owned 214,960 shares in the company, valued at approximately $15,047,200. This represents a 6.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $67.15, for a total value of $375,838.55. Following the transaction, the insider owned 315,075 shares in the company, valued at $21,157,286.25. This trade represents a 1.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 396,962 shares of company stock valued at $28,525,088 in the last three months. 15.19% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades Several equities research analysts recently issued reports on CVNA shares. Morgan Stanley upped their price target on Carvana from $90.00 to $102.00 and gave the stock an “overweight” rating in a report on Thursday, April 30th. Gordon Haskett lifted their price objective on shares of Carvana from $67.00 to $85.00 and gave the stock a “hold” rating in a report on Thursday, April 30th. Wells Fargo & Company upped their target price on shares of Carvana from $85.00 to $95.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Carvana in a report on Thursday, June 18th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $92.00 target price on shares of Carvana in a report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and an average target price of $92.92.
Get Our Latest Research Report on CVNA
Carvana Stock Down 4.5% Shares of NYSE CVNA opened at $67.50 on Friday. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The business has a 50-day moving average of $67.86 and a 200-day moving average of $72.29. The firm has a market capitalization of $74.04 billion, a price-to-earnings ratio of 41.06, a PEG ratio of 11.90 and a beta of 3.46. Carvana Co. has a 12 month low of $54.46 and a 12 month high of $97.38.
Carvana (NYSE:CVNA – Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37. The business had revenue of $6.43 billion for the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Sell-side analysts expect that Carvana Co. will post 1.58 earnings per share for the current fiscal year.
About Carvana (Free Report)
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.
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