Carvana Shares Are Falling: Here's Why

Carvana Co CVNA shares are trading lower after the company reported financial results and announced a $1 billion common stock offering. 

Carvana said first-quarter revenue increased 56% year-over-year to $3.5 billion, which beat the $3.39 billion estimate, according to data from Benzinga Pro. The company reported a quarterly net loss of $506 million.

Carvana said omicron, used vehicle prices, interest rates and other macro factors all negatively impacted retail units sold, which was the main driver of the company's weak results. Retail units sold totaled 105,185.

Carvana refrained from providing any near-term guidance due to the aforementioned uncertainties surrounding current industry trends.

Carvana also announced a $1 billion common stock offering. The company's CEO indicated that he's interested in purchasing up to an aggregate of $432 million of Carvana stock in the offering. 

Analyst Assessment:

• Needham analyst Chris Pierce maintained Carvana with a Buy rating and lowered the price target from $173 to $121.
• RBC Capital analyst Brad Erickson maintained Carvana with a Sector Perform rating and lowered the price target from $138 to $85.
• Wells Fargo analyst Zachary Fadem maintained Carvana with an Overweight rating and lowered the price target from $200 to $150.
• Piper Sandler analyst Alexander Potter maintained Carvana with a Neutral rating and lowered the price target from $130 to $98.
• Wedbush analyst Seth Basham maintained Carvana with an Outperform rating and lowered the price target from $160 to $120.
• Cowen & Co. analyst John Blackledge maintained Carvana with an Outperform rating and lowered the price target from $300 to $230.

See Also: Why Tesla Shares Are Trading Higher Today

CVNA Price Action: Carvana shares were down 9.51% at $83.70 at press time.

Photo: courtesy of Business Wire/Carvana.