What's Going On With Carvana's Stock?

Zinger Key Points
  • Carvana provides an update on its operating plan and capital structure and highlighted its first-quarter results and debt reductions.
  • JP Morgan analyst Rajat Gupta maintains Carvana with an Overweight and raises the price target from $130 to $150.

Carvana Co. CVNA shares are trading higher Monday, and the stock is up more than 10% in the past five days. Here's a look at what's going on.

What To Know:

Last Thursday, Carvana provided an update on its operating plan and capital structure and highlighted its first-quarter financial results as the best in company history and growth in retail units of 16% year-over-year.

The company also said it repurchased $250 million of 2028 Senior Secured Notes during the second quarter and raised $350 million of equity capital through its at-the-market (ATM) program. Carvana said it expects these actions to lead to approximately $55 million of interest expense savings in 2026 and $620 million less debt outstanding at year-end 2026.

Following the announcement, JMP Securities analyst Nicholas Jones maintained Carvana with a Market Outperform rating and raised the price target from $135 to $150. JP Morgan also maintained its Overweight rating on Carvana and raised the price target from $130 to $150 Monday.

Related News: What’s Going On With Robinhood Stock?

CVNA Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Carvana, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Carvana, the 200-day moving average sits at $60.63, according to Benzinga Pro, which is below the current price of $106.24. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CVNA Price Action: According to Benzinga Pro, Carvana shares are up 3.04% at $109.80 at the time of publication Monday.

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: NewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!