How to Buy Carvana Co Stock
Carvana Co
Carvana Co is a auto & truck dealership company located in Arizona, United States, which is part of the Consumer Cyclical sector, and is traded under the ticker CVNA on the NYSE exchange.
Carvana Co stock last closed at $31.62, up 2.23% from the previous day, and has increased 323.29% in one year. It has overperformed other stocks in the Auto & Truck Dealerships industry by 3.06 percentage points. Carvana Co stock is currently +790.7% from its 52-week low of $3.55, and -44.71% from its 52-week high of $57.19.
There are currently 199.65M shares of CVNA outstanding. The market cap of CVNA is $6.31B. In the last 24 hours, 5.36M CVNA shares were traded.
How to Buy Carvana Co Stock
Wondering how to invest in Carvana Co stock? Here's how.
- Choose where to buy Carvana Co stock: You need to pick a stock brokerage, but don't worry - we've tested dozens of online stock brokerages and apps to help you decide where to buy Carvana Co stock.
- Open a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Fund your brokerage account: Select your method of payment and add your details.
- Analyze Carvana Co stock: The Carvana Co ticker symbol is CVNA. Is Carvana Co stock a good investment? Should you buy shares of CVNA? How do CVNA's underlying business fundamentals look? Do top analysts think Carvana Co is a good buy? Why has CVNA's stock price moved recently? (Hint: Our stock market research website can help you decide if CVNA is a good stock to buy).
- Execute your CVNA buy order: Decide if you will purchase CVNA shares at the current market price or use a limit order to purchase CVNA shares at a given price.
- Watch your investment in CVNA: Create a watchlist to keep tabs on your position in Carvana Co shares.
Step 1: Choose where to buy Carvana Co stock
You need a brokerage account in order to access the NYSE market and buy CVNA stock.
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Open eToro AccountStep 2: Open a brokerage account
Now that you've chosen the right brokerage, it's time to fill out some personal info so you can buy CVNA today.
How to Start a New Brokerage Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal info to create your new trading account.
- Submit your information by hitting the "Create Account" button. Get started with eToro today
Step 3: Fund your brokerage account
Now that you've opened your account on apps for stocks, you can securely and quickly fund your account:
Watch the tutorial below for more details transferring funds into your brokerage account.
Step 4: Analyze Carvana Co stock
After you have decided on the best place to buy Carvana Co stock, it's absolutely critical to analyze their stock prior to buying, so you actually wrap your head around the risk and upside.
Carvana Co shares at a glance
CVNA Fundamentals
WallStreetZen was designed to help average investors do more accurate fundamental analysis quickly.
You can view all of the due diligence checks on CVNA's stock page.
What is the fair value of CVNA stock?
Analysts use a variety of different financial metrics, analyses, models, and charts to gauge CVNA's intrinsic value.
Using relative valuations metrics:
- CVNA could be overvalued based on its P/B ratio of 18.62x, relative to Auto & Truck Dealerships industry P/B ratio of 1.98x
You can do additional valuation research on CVNA's stock here.
CVNA Financial Health Overview
Positive Health Checks:
- There are more short-term assets than short-term liabilities on the CVNA balance sheet.
- CVNA profit margin has gone up from -6% to -2.2% in the past year.
Negative Health Checks:
- There are more long-term liabilities than short-term assets on the CVNA balance sheet.
- CVNA's operating cash flow of $303.00M allows it to safely service it's debt of $6.38B.
- CVNA has a relatively high debt to equity ratio of 21.32.
- CVNA earnings of $405.00M is not enough to cover its interest payments.
- Total CVNA debt is higher than 5 years ago, relative to shareholder equity.
Is it a good time to buy CVNA stock, according to Wall Street analysts?
Out of 12 Equities analysts who track CVNA, the consensus analyst rating on Carvana Co is a Sell
Please note that analyst ratings are not recommendations, nor are they financial advice.
Latest CVNA Analyst Ratings
John Colantuoni, a top 34% analyst from Jefferies downgrades CVNA to a sell rating and lowers their CVNA price target from $55.00 to $30.00, on Jul 31, 2023.
Jefferies's John Colantuoni downgraded their rating on Carvana Co (NYSE: CVNA) from Hold to Sell on 2023/07/31. The analyst also lowered their price target by 45.45% from $55.00 to $30.00.
It appears that the Street overestimated the sustainability of the company's recently improved profitability, which was driven by transitory tailwinds "that will abate in the upcoming months," the analyst bearishly argued.
"Short-lived tailwinds" are inflating the company's near-term profitability and pushing estimates too high, Colantuoni detailed, noting that any estimate downside will reanimate questions about the viability of Carvana's business model.
On top of that, Carvana's new balance sheet formed after the recent debt cut still requires a significant improvement in unit economics, the analyst argued.
Earnings Report
For Q2 2023, Carvana reported:
- Loss per share of $0.55, which beat the Zacks Consensus Estimate of $(1.13) and, by a significant amount, Q2 2022's $(2.35).
- Revenue of $2.97B, which beat the Zacks Consensus Estimate of $2.63B but missed, by 23.5%, Q2 2022's $3.88B.
- 76,530 retail units delivered, down 35% from Q2 2022, "driven largely by internal prioritization of profitability initiatives."
For Q3 2023, management guided:
- It expects to generate positive EBITDA .
- GPU (Gross Profit per Unit) of $5,000+.
- Retail deliveries and SG&A costs to remain almost flat sequentially.
CEO Ernie Garcia commented: “Carvana performed exceptionally well in Q2 and set Company records for EBITDA and gross profit per unit, which was up 94% Y/Y, all while continuing to lower expenses.
"Our strong execution has made the business fundamentally better, and combined with today’s agreement with noteholders that reduces our cash interest expense and total debt outstanding, gives us great confidence that we are on the right path to complete our three-step plan and return to growth."
Daniel Imbro, a top 8% analyst from Stephens & Co. maintains CVNA with a hold rating and raises their CVNA price target from $9.00 to $42.00, on Jul 25, 2023.
Ronald Josey, a top 5% analyst from Citigroup maintains CVNA with a hold rating and raises their CVNA price target from $25.00 to $50.00, on Jul 21, 2023.
Rajat Gupta, a top 11% analyst from JP Morgan maintains CVNA with a strong sell rating and raises their CVNA price target from $10.00 to $15.00, on Jul 20, 2023.
Zachary Fadem, a top 1% analyst from Wells Fargo maintains CVNA with a hold rating and raises their CVNA price target from $15.00 to $50.00, on Jul 20, 2023.
You can dig deeper into what analysts are forecasting on the Carvana Co stock forecast page.
CVNA Momentum
CVNA Growth Metrics
Last year, CVNA revenue was $11.18B. Over the past five year, CVNA's revenue has grown by 46.89% per year. This was faster than the Auto & Truck Dealerships industry average of 18.04%.
Find out more about CVNA's earnings and revenue performance here.
Latest Insiders Trades at CVNA
In the past 12 months, executives and large shareholders at CVNA have bought more shares than they have sold.
Stephen R. Palmer, Vice President of Accounting of CVNA, was the latest CVNA insider to sell. They sold $831.68 worth of CVNA stock on Nov 1, 2023.
Get more info about who owns CVNA shares here.
Can I rely on CVNA as an income stream?
No, Carvana Co doesn't provide an income stream by paying out dividends.
CVNA Social Trading Data
One of the reasons eToro is our favorite brokerage is because of its social trading community.
Click below to find out what other traders have to say.
Step 5: Execute your CVNA buy order
You have two primary types of orders:
- Market order: A market order is an order to buy or sell a stock at the best possible price.
Market orders are mostly the easiest way to buy. - Limit order: A limit order is an order to buy or sell a stock at a specific price (or better).
If you want to ensure you're buying or selling at a particular price limit, place a limit order.
Click the Open button and eToro will place the order.
If you need additional help investing in stocks on eToro, watch the helpful video below:
Step 6: Watch your investment in CVNA
Now that you own some CVNA stock, you'll want to stay up-to-date on your investment.
Add CVNA to a watchlist to get notified of important updates regarding your CVNA stock.
CVNA Feed
How to Buy Stock in Carvana Co
To summarize, here are the 6 steps for buying Carvana Co stock:
- Choose where to buy Carvana Co stock
- Open a brokerage account
- Fund your brokerage account
- Analyze Carvana Co stock
- Execute your CVNA buy order
- Watch your investment in CVNA
If you require a online brokerage, eToro is our favorite option.
Get Started with eToro TodayIf you want to get the latest news on your investment in Carvana Co, get started below.
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