Carvana Stock Hit With Bear Note on Valuation Concerns

The stock's first quarter of 2022 was its worst on record

Digital Content Manager
Apr 5, 2022 at 9:30 AM
facebook X logo linkedin


Carvana Co (NYSE:CVNA) this morning, was downgraded to "sector perform" from "outperform" at RBC Capital Markets. The analyst also slashed it price target to $138 from $155, citing valuation concerns and its recent Adesa acquisition, which the analyst thinks Carvana may have difficulty integrating into its company. In response, CVNA is down 4.3% to trade at $127.20. 

Carvana stock has already shed 42.6% this year, with overhead pressure at the 60-day moving average keeping a lid on its late-March rally attempt. The stock just notched its fifth-straight monthly drop, and logged its worst quarterly return on record last week. 

These technical troubles have elicited a response from short sellers. In fact, short interest rose 26.3% in the last two reporting periods, and now makes up 19.8% of the stock's available float, or nearly a week's worth of pent-up buying power.

There's room for more members of the brokerage bunch to follow RBC's lead. Coming into today, 14 of the 19 analysts in coverage called CVNA a "buy" or better, without a single "sell" on the books. What's more, the 12-month consensus price target of $225 is a whopping 69.2% premium to last night's settlement. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI