Carvana Co. (NYSE:CVNA) Chief Financial Officer Mark W. Jenkins recently executed a series of transactions involving the company's Class A common stock. The transactions come as Carvana's shares have shown remarkable strength, with a 624% return over the past year and a current market capitalization of $53.84 billion. According to InvestingPro analysis, the stock is currently trading near Fair Value levels. On December 2, Jenkins sold shares totaling approximately $2.55 million. The sale involved multiple trades at prices ranging from $251.87 to $261.20 per share.
Additionally, Jenkins exercised stock options to acquire 10,000 shares at $10.07 per share, valued at approximately $100,700. Following these transactions, Jenkins' direct ownership in Carvana stands at 189,761 shares.
These transactions were carried out under a pre-established Rule 10b5-1 trading plan.
In other recent news, Carvana has been the subject of significant developments. The online used car retailer reported a record-breaking third quarter, with a 34% year-over-year increase in retail units sold, contributing to a 32% surge in revenue. The company's net income reached $148 million, with operating income of $337 million and an adjusted EBITDA of $429 million in Q3. This robust financial performance led Morgan Stanley (NYSE:MS) to upgrade Carvana's stock rating from Underweight to Equal-weight, following the earnings beat.
The firm also significantly increased the price target for Carvana's shares to $260.00, up from the previous target of $110.00, indicating a change in outlook on the company's financial performance and market position. The revised rating reflects a more neutral perspective on the company's stock, moving away from the previous cautious stance.
Looking forward, Carvana plans to increase its advertising spend by $5 million to $10 million in Q4 and anticipates an adjusted EBITDA significantly above the $1.0 billion to $1.2 billion range for the full year 2024. These recent developments underscore Carvana's ongoing efforts to position itself for sustainable growth and market expansion.
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