Carvana Co (NYSE:CVNA) shares are hitting fresh highs on Thursday after the company reported strong results for the second quarter. Multiple analysts raised price targets following the print.
What Happened: Carvana beat analyst estimates on the top and bottom lines in the second quarter, turning in revenue of $4.84 billion versus estimates of $4.53 billion, and earnings of $1.28 per share versus estimates of 97 cents per share.
Second-quarter revenue jumped 42% year-over-year as vehicle sales climbed 41% to 143,280. Carvana guided for a sequential increase in retail units sold in the third quarter.
Following the company’s quarterly results, Needham analyst Chris Pierce maintained a Buy rating and raised the price target from $340 to $500. BofA Securities analyst Michael McGovern also maintained a Buy rating and lifted the price target from $375 to $425.
"Carvana's industry-leading growth is the result of delivering an experience that customers love, and our industry-leading profitability is driven by our unique, efficient and vertically integrated business model," said Ernie Garcia, co-founder and CEO of Carvana.
"As we tackle the enormous opportunity ahead, we continue to unlock the scale benefits of our model, driving profitable growth and even better customer experiences."
How To Buy CVNA Stock
By now you're likely curious about how to participate in the market for Carvana – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
CVNA Price Action: Carvana shares were up 18.4% at $394.98, trading at all-time highs at the time of publication Thursday, according to Benzinga Pro.
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