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Why Is Carvana Stock Gaining Today? - Carvana (NYSE:CVNA)
Benzinga· 2026-03-13 15:06
Core Viewpoint - Carvana announced a 5-for-1 forward stock split to enhance stock accessibility for employees, marking the first split in its history, following strong stock appreciation and record profitability in 2025 [1][7] Company Overview - Carvana operates as an e-commerce platform for buying and selling used cars, generating revenue from used vehicle sales, wholesale vehicle sales, and other sales including loans originated and sold [6] Financial Performance - Carvana's shares have increased by 77.96% over the past 12 months, currently trading at $300.45, which is closer to its 52-week highs than lows, indicating strong long-term performance [3][12] - The company is expected to report its next financial update on May 6, 2026 [8] Analyst Outlook - The stock carries a Buy Rating with an average price target of $470.18, with recent analyst actions including Citigroup lowering its target to $465.00 and Barclays lowering to $450.00 [9][11] - EPS estimate is $1.44 (down from $1.51) and revenue estimate is $6.07 billion (up from $4.23 billion), indicating a premium valuation with a P/E of 34.6x [11] Technical Analysis - Carvana is trading 9.6% below its 20-day simple moving average and 21.9% below its 100-day simple moving average, indicating a bearish short-term trend [3] - The RSI is at 32.98, suggesting neutral territory, while the MACD indicates a bullish crossover, reflecting mixed momentum [4] Market Context - Broader markets are trading higher, with the S&P 500 and Nasdaq Composite posting modest gains, although Carvana is underperforming its sector, which is experiencing a 0.45% decline [2][5]