What's the Media Buzz Surrounding Carvana Co. (CVNA)?

Bad news keeps piling up for CVNA investors. Today the Wall Street Journal is reporting: "The used-car dealer that was a pandemic winner is rushing to conserve cash as once-plentiful financing options dry up and business deteriorates." For more coverage, read the full article here. On Friday, Carvana Co. sank -3.1% to a price of $8.06. Are the markets overreacting?

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Carvana Co. has a trailing 12 month P/E ratio of -1.9 and a P/B ratio of 3.1.

Carvana Co. has moved -97.2% over the last year compared to -15.3% for the S&P 500 -- a difference of -81.8%. Carvana Co. has a 52 week high of $296.7 and a 52 week low of $6.5. At today's price of $8.06 per share, Carvana Co. is -70.94% away from its target price of $27.74, and on average, analysts give the stock a rating of hold.60.0% of the company's shares are linked to short positions, and 120.4% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS