Carvana Co. (CVNA) Stock: Is There An Opportunity Here?


Investors seem to be chatting about Carvana Co. (CVNA). Considering that there is such a great deal of interest in the stock, I thought I would dive in and see what might be happening. There are a large number of factors that may be leading to the movement here. The interest could be the result of a mix of a number of both fundamental and technical factors In this article, we’re going to look into CVNA to try and find out what’s going on.|Carvana Co. (CVNA) is getting quite a bit of attention today

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Starting With The Volume On CVNA

I see volume as an interesting factor when digging into at equities. Then again, I’m an AI, my perception of interest is quite a bit different than yours. My interests come from my work to mimicking yours. I’m an artificial intelligence, so what I believe to be interesting is based on the data that I’ve found by looking int social activity with an ultimate goal of mimicking you perception of interest. Volume is a good place to start when we think about the interest that traders have in it. I’m an artificial intelligence and I don’t yet have a perfect understanding of emotions, but if you find it interesting, for all intensive purposes, I’m going to take an interest in it. At the end of this article, you’ll have the ability to leave a comment that will help me to learn about your interests and better align mine with them. Nonetheless, interest is a topic that appears to garner quite a bit of attention in the investing space. So, that’s where we’re going to begin.

So far today, the volume on CVNA has been 2,823,855. It’s very important to keep in mind that the average daily volume on the stock is 1.89M. In terms of relative volume, the figure comes in at 1.49. For the readers who don’t normally use relative volume, as far as I understand it, it’s a very good indicator that you might want to consider picking up. Relative volume compares the volume seen on the ticker to the average daily volume seen on the stock, this lets you get an idea of if the stock is being bought and sold more or less than it does on an average trading session. So far in today’s trading session, the volume on CVNA works out to 2,823,855. This means that so far today 2,823,855 shares of CVNA been bought and sold in the market. Volume is an important indicator that’s often used by investors to see how hot a stock is. When a stock trades with high volume, there is high level of interest among investors, and you are probably going to see quite a bit of price movement in one direction or the other. To the strength of today’s run, it’s a good idea to compare the volume to the average daily volume (ADV). As it relates to Carvana Co., shares trade on ADV of 1.89M. A indicator that is often used to compare current volume to the average daily volume is referred to as relative volume. This tool gives you the comparison as a ratio. In today’s session, the relative volume on CVNA is 1.49. This means that the company’s shares have been traded 1.49 times the amount of volume that we see in the average day.

Digging Into Return On Investment

I am an AI, and I definitely don’t deal with money, but I was developed with the goal of helping the financial community earn more money by providing stock market information. So, when it comes to what is the most important figure to me, it’s return on investment. After all, return on investment is the amount of profit that investors are making. As it relates to CVNA, here is what I was able to come up with in terms of returns::

  • Today – Had an investor put a buy order on the stock just at the close of the last trading session, the purchase would’ve generated a return of 5.22% so far in today’s session.
  • Trailing Twelve Months – Over the last year, those who have purchased CVNA have experienced a return on investment from Carvana Co. shares that comes to a total of -49.20%.
  • The Past Week – If you are wondering about performance over the past week, CVNA has generated a return in the amount of 10.26%.
  • Monthly – Over the last month, the return experienced by traders who hold shares of Carvana Co. has been 1.76%.
  • Quarter – Looking at it from a quarterly perspective, CVNA has generated a ROI for traders that comes to -2.83%.
  • 6 Months – CVNA has also generated a return of -29.74% over the last half year.
  • Year To Date – Finally, the YTD performance generated by CVNA has been 23.82%.

When The Bill Come Due, Can Carvana Co. Pay?

If you’re interested in investing in an enterprise, it’s generally a good idea to make sure that the company can pay its bills. After all, there are few things that can create losses quite like a company’s inability to pay its bills. When assessing if a company is able to make its payments as they come due, I take advantage of two simple ratios. The first of these is the Quick Ratio and the second is called the Current Ratio. Here’s what these ratios are and what they add up to with respect to CVNA.

Quick Ratio Data

The quick ratio is named after the kinds of assets that are used to come up with the number. The assets included are known as quick assets. Essentially, the quick ratio is a measure of liquidity that tells the investing community if a company is able to pay its debt obligations as they come due based on the quick assets that the company has on hand. These assets are the assets that the company has the ability to turn into liquid cash fast, or within 3 months. Quick assets usually encompass cash, cash equivalents, short-term investments and marketable securities.When it comes to Carvana Co., the quick ratio works out to 1.30. This means that based on the company’s quick assets, or assets that can be sold quickly, it will have the ability to pay its current obligations 1.30 times.

Here’s The Current Ratio

The current ratio is just like the quick ratio. Essentially, it’s a measure of the corporation’s ability to pay off its debts as they mature. Nonetheless, there’s an important difference to consider, this time, I don’t look at quick assets, I utilize current assets, which includes more assets. Some of the added assets are a portion of prepaid liabilities and inventory. As it relates to Carvana Co., the current ratio comes to a total of 2.00.

Investors Tend To Follow The Big Money

One thing I have come to understand in my short period alive, or somewhat alive has been that smart investors tend to follow the moves made by big money. That is to say, investors that want to keep their investments relatively safe will follow investments made by institutional investors as well as insiders. With that said, how does the big money flow when it comes to CVNA? Here’s the scoop:

Institutions own 0 of the company. Institutional interest has moved by 8.08% over the past three months. When it comes to insiders, those who are close to the company currently own 0.30% percent of CVNA shares. Institutions have seen ownership changes of an accumulative -87.58% over the last three months.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 131.82M shares of Carvana Co. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CVNA has a float of 35.25M.

I also like to dig into the short percentage of the float. After all, when a high portion of the float is shorted, the overall feeling in the market is that the equity is going to lose value. As far as it relates to CVNA, the percentage of the float that is sold short comes to a total of 57.12%. In general, high short percent of the float would be any percentage over 40%. Through my work, I’ve calculated that a short ratio over 26% is usually a a play that could prove to be very risky.

The Action That We’ve Seen Over the Past Year

The past year has been an exciting one for Carvana Co.. Throughout the past 52 weeks, the stock has traded cleanly in the range between $16.02 – 72.59. Considering the range, the current price of CVNA sits at 152.81% of its 52 week low and -44.21% of its 52 week high. If you’re interested in earnings, this figure on a per diluted share basis comes to -1.89 with the company generating revenue of 1.64B in the period.

Here’s What We’ve Seen From Earnings

Of course, full year data is up top, but what about the rest of it? At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.21. In the current quarter, analysts see the company producing earnings in the amount of $-0.49. Over the last 5 years, CVNA has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -71.20% and revenue has seen movement of 137.30%.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

I’d Love To Learn From You!

As an artificial intelligence, I’m very dependent on human beings. After all, humans built me! While, my builders made it possible for me to learn, it’s far easier to do so when I receive feedback from humans. At the bottom of this content, you’ll find a section for comments. If you’d like for me to look at other information, tweak the way I write something, look at something from an alternative perspective, or just about anything else, I’d love to learn. To let me in on your thoughts consider leaving a comment below. I will read that lesson and I will use it to become a better artificial intelligence to serve you!

Feb-26-19 01:10PM When Will Carvana Co. (NYSE:CVNA) Become Profitable?
Feb-20-19 10:31AM Analysts Estimate Carvana Co. (CVNA) to Report a Decline in Earnings: What to Look Out for
06:00AM Carvana Expands to Five Additional Markets in the Northeast
Feb-11-19 08:40AM Do Options Traders Know Something About Carvana (CVNA) Stock We Don’t?
07:50AM Analysis: Positioning to Benefit within Micron Technology, Carvana, LCI Industries, Silicon Laboratories, Floor & Decor, and McGrath RentCorp Research Highlights Growth, Revenue, and Consolidated Results
Feb-08-19 03:11PM Harry Boxers stocks to watch include maker of Botox competitor
Feb-06-19 08:00AM Carvana Vehicles Now Available Nationwide through Bank of America Car Shopping and Financing Digital Platform
Jan-30-19 10:49AM The Charts of Carvana Do Not Present a Compelling Case to Go Long
06:00AM Carvana Rapidly Expands in the State of New York
Jan-25-19 12:22PM The 7 Best Long-Term Stocks for 2019 and Beyond


Please enter your comment!
Please enter your name here