Carvana’s Garcia sells $36m in shares

Published 07/08/2025, 09:30
Carvana’s Garcia sells $36m in shares

Ernest C. Garcia II, a ten percent owner of Carvana Co. (NYSE: NYSE:CVNA), sold shares of Class A Common Stock worth approximately $36 million on August 5, 2025. The sales occurred at prices ranging from $346.8938 to $368.6178. The transaction comes as Carvana, now valued at $77.4 billion, shows strong momentum with a 176% return over the past year. According to InvestingPro analysis, the company appears slightly undervalued at current levels.

The sales involved a total of 100,000 shares. These sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on December 13, 2024, by Ernest C. Garcia II and Elizabeth Joanne Garcia. The company has demonstrated robust financial health, with revenue growing 39% year-over-year and maintaining a healthy current ratio of 4.0. InvestingPro subscribers have access to 18 additional key insights about Carvana’s financial position and growth prospects.

On the same day, Garcia converted 100,000 Class A Units into Class A Common Stock. The company’s strong performance is reflected in its earnings, with analysts forecasting EPS of $8.81 for fiscal year 2025.

In other recent news, Carvana has reported strong second-quarter 2025 results, with several firms adjusting their stock price targets in response. JPMorgan raised its price target to $415 from $350, noting that Carvana’s adjusted EBITDA of $601 million surpassed both its own estimate and Bloomberg’s consensus. Needham increased its target to $500 from $340, highlighting Carvana’s potential for growth within a fragmented industry. BTIG also raised its target to $450 from $395, citing robust retail gross profit per unit and operational efficiency. JMP Securities adjusted its price target to $460 from $440, acknowledging Carvana’s revenue and EBITDA surpassing consensus expectations by 6% and 9%, respectively. DA Davidson raised its target to $380 from $260, maintaining a Neutral rating, and pointed out the year-over-year growth in used vehicle units. These developments reflect a positive outlook from analysts on Carvana’s financial performance and market position.

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