Analysts, Bulls Chime In on Carvana's First Annual Profit

Shares are trading at their highest level since April 2022

Digital Content Manager
Feb 23, 2024 at 10:22 AM
facebook X logo linkedin


Carvana Co (NYSE:CVNA) stock is up 43.8% to trade at $75.34 at last check, despite the car e-tailer's fourth-quarter profit and revenue miss. The company reported its first annual profit thanks to debt cutting, however. Raymond James upgraded the security to "market perform," while William Blair raised its rating to "outperform." Another five analysts lifted their price targets, including J.P. Morgan Securities to $65 from $40.

The shares are trading at their highest level since April 2022, and on track for their biggest single-day percentage gain since July, bouncing off the 20-day moving average. In the last 12 months, CVNA added nearly 597.1%.

Carvana sock looks ripe for a short squeeze. While short interest is down 11.2% in the last two reporting periods, the 33.48 million shares sold short make up 32.4% of the security's available float, which represents nearly one week's worth of pent-up buying power.

Options volume is already running at 13 times the intraday average, with 82,000 calls and 40,000 puts exchanged so far. The most popular contract is the weekly 2/23 80-strike call, with new positions being opened there. This indicates that traders expect more upside for CVNA before today's market close, when contracts are set to expire.

Those looking to speculate should consider options. The stock's Schaeffer's Volatility Scorecard (SVS) of 80 out of 100 means that the equity usually outperforms volatility expectations. 

 

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