Why Carvana (CVNA) Shares Are Trading Higher Thursday

Carvana Co CVNA shares are trading higher on Thursday after the company received positive upgrades and revisions from S&P Global Ratings.

The Details:

S&P Global Ratings raised its ratings on 21 classes from seven Carvana-sponsored securitizations backed by prime auto loans. S&P Global Ratings also affirmed its ratings on 19 classes from the same transactions and lowered its loss assumptions on the same seven transactions.

S&P Global Ratings also raised its ratings on 15 classes from five Carvana-sponsored securitizations backed by non-prime auto loans and affirmed its ratings on nine classes from the same transactions.

Meg Kehan, Carvana’s senior director of capital markets said, "We believe the ratings actions taken by S&P demonstrate our ability to originate high quality assets in our lending business as a result of disciplined underwriting practices that are complemented by our third party servicer’s experience and expertise."

According to Benzinga Pro, there is significant short interest in Carvana's stock with 69.40% of the available shares currently being sold short. The high short interest could be helping fuel Thursday's rally.

Related News: Why U Power (UCAR) Shares are Surging Thursday

CVNA Price Action: Carvana is trading up over 18% at $15.31 at the time of publication, per Benzinga Pro.

Photo: courtesy of Carvana

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