The stock of Carvana Co. (NYSE:CVNA) is now priced at $227.19 and the shares are 11.23 points up or 5.2% higher compared to its previous closing price of $215.96. The stock had 1.891 million contracts set over the past session. CVNA shares’ daily volume is compared to its average trading volume at 1.862 million shares. However, it has a float of 58.73 million and although its performance was 11.95% over the week, it’s one to watch. Analysts have given the CVNA stock a yearly average price target of $171.26 per share. It means the stock’s downside potential is -24.62% with the CVNA share price recently placing at $214.57 to $235. However, some brokerage firms have priced the stock below the average, including one that has called $23.
The shorts are running away from the Carvana Co. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the CVNA shares have declined. Short interest in the stock represents just 31.82% of its float, but the volume has dropped by 0.
In the last trading session, Carvana Co. (NYSE:CVNA) raised by $24.26 over the week and gained $60.5 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $235. The stock recorded its established 52-week high on 09/01/20.
Since 03/19/20, the stock has traded to a low of $22.16 at 925.23%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 2.49. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Carvana Co.’s two-week RSI is 75.69. This suggests that the stock is oversold at the moment and that CVNA shares’ price movement remains not stable. The stochastic readings are equally revealing at 89.94% meaning the CVNA share price is currently in oversold territory.
The technical chart shows that the CVNA stock will likely settle at between $236.6 and $246.02 per share. However, if the stock dips below $216.17, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $205.16.
Currently, the stock is trading in the green of MACD, with a reading of 10.97. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned CVNA a rating of Hold in their intiating review released on August 12. BofA Securities analysts downgraded their recommendation of the stock from Buy to Neutral while keeping its target price at $150 to $230 in a flash note released to investors on August 07. Piper Sandler analysts see the stock as Overweight when the analysts initiated the share price coverage on July 28, placing it at $211.
The average rating for the CVNA equity is 2.29 and is currently gathering a bullish momentum. Of 23 analysts tracking Carvana Co. polled by Reuters, 10 rated CVNA as a hold. The remaining 13 analysts were split evenly. However, the split wasn’t equal as a majority (11) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 71.3. Carvana Co. has its P/E ratio at 91, which means that the stock is currently trading at a premium relative to the 15.2 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Carvana Co. (NYSE:CVNA) will increase by about 32.38%, which will see them reach $1480 million. The company’s full-year revenues are, however, expected to increase by about 33.25%, up from $3940 million to $5250 million. CVNA’s expected adjusted earnings should drop almost -3.57% to end up at -$0.54 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 28.95% to record -$2.94/share.